EconPapers    
Economics at your fingertips  
 

Lobbying over exhaustible-resource extraction

Achim Voß and Mark Schopf ()

European Economic Review, 2021, vol. 135, issue C

Abstract: In a dynamic model of natural-resource extraction, we characterize the extraction path that is chosen by a government which is lobbied by natural-resource suppliers. The lobby group pays the government in exchange for a favorable policy. We show how the development of payments relates to the development of a conflict of interest between profit maximization and welfare maximization. The agreed extraction reflects the resource owners preference for supply restrictions that keep up the price and the government’s preference for avoiding flow-pollution damages. Due to stock-pollution damages, the government prefers a lower level of total extraction than the lobby group. Resource extraction decreases monotonically. Lobby payments do not necessarily do so, but they decrease in the long run.

Keywords: Environmental policy; Exhaustible resources; Lobbying; Political economy; Time consistency (search for similar items in EconPapers)
JEL-codes: D72 Q31 Q38 Q58 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0014292121000933
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Lobbying over Exhaustible-Resource Extraction (2017) Downloads
Working Paper: Lobbying over Exhaustible-Resource Extraction (2016) Downloads
Working Paper: Lobbying over Exhaustible-Resource Extraction (2015) Downloads
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: https://EconPapers.repec.org/RePEc:eee:eecrev:v:135:y:2021:i:c:s0014292121000933

DOI: 10.1016/j.euroecorev.2021.103740

Access Statistics for this article

European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer

More articles in European Economic Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2022-06-04
Handle: RePEc:eee:eecrev:v:135:y:2021:i:c:s0014292121000933