Ambec, Stefan (2020) Environmental markets exacerbate inequalities. TSE Working Paper, n. 20-1120, Toulouse

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Environmental markets distribute tradable rights on natural resources that are available for free on the earth such as water, biomass or clean air. In a framework where users differ solely in respect of their access to the resource, I investigate the allocation of rights that are accepted in the sense that, after trading, users obtain at least what they can achieve by sharing the resources they control. I show that, among all accepted rights, the more egalitarian ones do not allow any redistribution among users. Consequently, compared to an efficient allocation of resources, the net trading of rights always increases inequality.

Item Type: Monograph (Working Paper)
Language: English
Date: July 2020
Place of Publication: Toulouse
Uncontrolled Keywords: Common-pool resources, environmental externalities, property rights, cooperative game, fairness, tradable quotas, emission permits.
JEL Classification: C71 - Cooperative Games
D02 - Institutions - Design, Formation, and Operations
D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
Q28 - Government Policy
Q38 - Government Policy
Q58 - Government Policy
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 08 Jul 2020 15:34
Last Modified: 27 Oct 2021 13:38
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