Quality and Congestion in Environmental Goods — The Road to the Wangapeka

Martin Richardson

Chapter 16 in Dimensions of Trade Policy, 2017, pp 329-357 from World Scientific Publishing Co. Pte. Ltd.

Abstract: An increasing complaint heard among New Zealand residents is that their enjoyment of local environmental resources is being diminished by increased congestion from foreign visitors. This paper considers a model of vertical differentiation in which foreign high-value and domestic low-value consumers incur congestion costs in using a common resource. We demonstrate that reducing quality in the face of increased foreign demand is optimal absent discriminatory prices (but not otherwise). We also consider the provision of multiple environmental goods and demonstrate that providing differential qualities may be optimal even if domestic consumers do not use the high-quality resources at all.

Keywords: Trade Policy; Preferential Trading Agreements; Content Protection; Parallel Imports (search for similar items in EconPapers)
JEL-codes: F13 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789813207615_0016 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789813207615_0016 (text/html)
Ebook Access is available upon purchase.

Related works:
Journal Article: Quality and Congestion in Environmental Goods: The Road to the Wangapeka (2002)
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:wsi:wschap:9789813207615_0016

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().