The democratic provision of public and private goods from exhaustible resources

Research output: Contribution to journalArticlepeer-review

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 languageEnglish
Pages (from-to)81-89
Number of pages9
JournalJournal of Environmental Economics and Management
Volume7
Issue number2
DOIs
StatePublished - 1 Jan 1980
Externally publishedYes

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