Efficiency Costs of Social Objectives in Tradable Permit Programs

A-Tier
Journal: Journal of the Association of Environmental and Resource Economists
Year: 2015
Volume: 2
Issue: 3
Pages: 339 - 366

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Objectives of tradable permit programs are often broader than internalizing an externality and improving economic efficiency. Many programs are designed to accommodate community, cultural, and other nonefficiency goals through restrictions on trading. However, restrictions can decrease economic efficiency gains. We use a policy experiment from the Alaska halibut and sablefish tradable permit program, which includes both restricted and unrestricted permits, to develop one of the few empirical measurements of the costs of meeting nonefficiency goals. We estimate that restrictions are reducing resource rent in the halibut and sablefish fisheries by 25% and 9%, respectively.

Technical Details

RePEc Handle
repec:ucp:jaerec:doi:10.1086/681646
Journal Field
Environment
Author Count
3
Added to Database
2026-01-25