Threatened species as public goods and public bads - An application to wild predators in Sweden

Abstract

This paper discusses Pareto efficient allocations of an environmental commodity, which is both a public good and a public bad, with an application to the Scandinavian problem of conserving wild predators that are killing semi-domesticated reindeer. The paper begins by briefly outlining this conflict. This is followed by a theoretical analysis employing a diagrammatic tool called the Kolm triangle, which is an analogue of an Edgeworth box in an economy with a public good. Bargaining, Pareto improving reallocations and the shape of the Pareto set are discussed, using a simple model, where one of the agents is involountarily contributing to a public good. The paper concludes with an analysis of income-loss compensations and incentives for illegal hunting of predators.

Keywords

bargaining; compensations; illegal hunting; Kolm triangle; public goods' reindeer; wild predators

Published in

Environmental and Resource Economics
1999, volume: 13, number: 1, pages: 59-73
Publisher: SPRINGER

SLU Authors

• Bostedt, Göran

  • Department of Forest Economics, Swedish University of Agricultural Sciences
    

UKÄ Subject classification

Economics

Publication identifier

• DOI: https://doi.org/10.1023/A:1008201401068

Permanent link to this page (URI)

https://res.slu.se/id/publ/63129