Income distributional effects of using market-based instruments for managing common property resources

In this article, the authors show the trade‐offs between efficiency and equity that arise from the application of market‐based instruments to a heterogenous population of agents drawing from a natural resource pool. Using the example of groundwater, they find that there are overall losses in allocat...

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Detalles Bibliográficos
Autores principales: Msangi, Siwa, Howitt, Richard E.
Formato: Journal Article
Lenguaje:Inglés
Publicado: Wiley 2007
Materias:
Acceso en línea:https://hdl.handle.net/10568/171841
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author Msangi, Siwa
Howitt, Richard E.
author_browse Howitt, Richard E.
Msangi, Siwa
author_facet Msangi, Siwa
Howitt, Richard E.
author_sort Msangi, Siwa
collection Repository of Agricultural Research Outputs (CGSpace)
description In this article, the authors show the trade‐offs between efficiency and equity that arise from the application of market‐based instruments to a heterogenous population of agents drawing from a natural resource pool. Using the example of groundwater, they find that there are overall losses in allocative efficiency when the centralized planner is constrained by equity considerations, and that the distribution of gains or losses to management becomes skewed asymmetrically across agents. These results demonstrate the importance of considering both efficiency gains and disparities in distributional inequity, when designing policy instruments that create winners and losers with potentially serious sociopolitical ramifications.
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spelling CGSpace1718412025-01-29T12:58:50Z Income distributional effects of using market-based instruments for managing common property resources Msangi, Siwa Howitt, Richard E. water policies economic situation In this article, the authors show the trade‐offs between efficiency and equity that arise from the application of market‐based instruments to a heterogenous population of agents drawing from a natural resource pool. Using the example of groundwater, they find that there are overall losses in allocative efficiency when the centralized planner is constrained by equity considerations, and that the distribution of gains or losses to management becomes skewed asymmetrically across agents. These results demonstrate the importance of considering both efficiency gains and disparities in distributional inequity, when designing policy instruments that create winners and losers with potentially serious sociopolitical ramifications. 2007-12 2025-01-29T12:58:50Z 2025-01-29T12:58:50Z Journal Article https://hdl.handle.net/10568/171841 en Limited Access Wiley Msangi, Siwa; Howitt, Richard E. 2007. Income distributional effects of using market-based instruments for managing common property resources. Agricultural Economics 37(s1): 249-259. https://doi.org/10.1111/j.1574-0862.2007.00249.x
spellingShingle water policies
economic situation
Msangi, Siwa
Howitt, Richard E.
Income distributional effects of using market-based instruments for managing common property resources
title Income distributional effects of using market-based instruments for managing common property resources
title_full Income distributional effects of using market-based instruments for managing common property resources
title_fullStr Income distributional effects of using market-based instruments for managing common property resources
title_full_unstemmed Income distributional effects of using market-based instruments for managing common property resources
title_short Income distributional effects of using market-based instruments for managing common property resources
title_sort income distributional effects of using market based instruments for managing common property resources
topic water policies
economic situation
url https://hdl.handle.net/10568/171841
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