Abstract
The problem of distributing exhaustible natural resources between consumption goods and environmental amenities through a voting process is analyzed. Assuming that individuals are endowed with an equal share of private goods, the method of majority decision does not always achieve a Pareto-optimal distribution. However, by means of side payments, the intensity of preferences is revealed. The voting procedure then leads to a Pareto-optimal solution which is more prone to environmental amenities than the simple method of majority decision.
Original language | English |
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Pages (from-to) | 81-89 |
Number of pages | 9 |
Journal | Journal of Environmental Economics and Management |
Volume | 7 |
Issue number | 2 |
DOIs | |
State | Published - 1 Jan 1980 |
Externally published | Yes |
ASJC Scopus subject areas
- Economics and Econometrics
- Management, Monitoring, Policy and Law