How to Pollute a River If You Must

Yuzhi Yang, Erik Ansink and Jens Gudmundsson
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Yuzhi Yang: Vrije Universiteit Amsterdam

No 23-036/VIII, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: We propose the river pollution claims problem to distribute a pollution bud- get among agents located along a river. A key distinction from the standard claims problem is that agents are ordered exogenously. For environmental rea- sons, the location of pollution along the river is an important concern in addition to fairness. We characterize the class of externality-adjusted proportional rules and show that they strike a balance between fairness and minimizing environmental damage in the river. We also propose two novel axioms that are motivated by the river pollution context and use them to characterize two priority rules. We illustrate the rules through a case study of the Tuojiang Basin in China.

Keywords: Claims Problem; River Pollution; Pollution Permits; Externality- Adjusted Proportional Rules; Priority Rules (search for similar items in EconPapers)
JEL-codes: C71 D62 D63 Q25 (search for similar items in EconPapers)
Date: 2023-06-28, Revised 2024-06-01
New Economics Papers: this item is included in nep-des, nep-env and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: How to pollute a river if you must (2025)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20230036

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