Abstract:
Resource purchasing funds have become a major tool for environmental protection and resource conservation. These funds use various strategies to target resources for conservation, the choice of which may lead to striking differences in environmental performance. This paper develops an analytical framework to analyze the impact of alternative targeting strategies on different interest groups, including consumers, producers, labor, and environmentalists. We show that ignoring the output price effect of purchasing funds reduces environmental gain and in some cases may make a purchasing fund counterproductive, and we argue that the optimal design of targeting criteria must consider the price feedback effect.
JEL-codes:N5 (search for similar items in EconPapers) Date: 2001-01-18
Published in Journal of Environmental Economics and Management, 2001, Vol. 41, pp. 333-350.
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More papers in Staff General Research Papers from Iowa State University, Department of Economics Address: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070 Contact information at EDIRC. Series data maintained by Stephanie Bridges ().
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