Economics at your fingertips  

Assessing the Distributional Impacts of Transferable Pollution Permits: The Case of Phosphorus Pollution Management at a River Basin Scale

Athanasios Kampas () and Spyridon Mamalis

Agricultural Economics Review, 2006, vol. 07, issue 2, 12

Abstract: Although the initial allocation of pollution permits is neutral in terms of efficiency, it does have a significant impact on distributive equity. In this paper, we examine the two main categories of permit allocation rules, the distributive and the reductive, for controlling phosphorus pollution in a small catchment in South West England. Based on the premise that the regulatory choice compromises efficiency and equity, the main result of this paper is that an allocation of permits in proportion to the intensity of environmental preferences is a “win-win” choice. The reason is that it simultaneously achieves two goals. First, it is efficient (or cost-effective) since a permit system achieves a prespecified target at a minimum abatement cost, while second, it is the only allocation rule which reduces the income inequality of the baseline scenario.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.22004/ag.econ.44115

Access Statistics for this article

More articles in Agricultural Economics Review from Greek Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().

Page updated 2023-06-15
Handle: RePEc:ags:aergaa:44115