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The river pollution claims problem

Yuzhi Yang and Erik Ansink
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Yuzhi Yang: Vrije Universiteit Amsterdam

No 22-058/VIII, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: We propose the river pollution claims problem to distribute a limited pollution budget among agents located along a river. A key distinction with the standard claims problem is that agents are ordered and they are given priority based on their location in this order instead of their identity. We propose two new axioms that are relevant in the context of river pollution and use these to characterize two priority rules. Our characterization results show that Consistency plays an important role since it makes sure that any asymmetric treatment will be transferred across problems.

Keywords: Claims Problem; River Pollution; Pollution Permits; Priority Rules (search for similar items in EconPapers)
JEL-codes: C71 D62 D63 Q25 (search for similar items in EconPapers)
Date: 2022-09-01
New Economics Papers: this item is included in nep-des, nep-env and nep-res
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