We consider the redistributive effects of privatizing a resource previously exploited under free access. We assume that illegal extraction is punished but that the sanction is bounded by individuals' wealth. First, we show that a segment of intermediate-wealth individuals is the most adversely affected from the regime change, while the poorest segment is not only less severely affected, but may actually gain from it. Next, we show how the authorities may prefer to choose an intermediate enforcement level in order to maximize the political acceptability of the regime switch among the local community.

In a widely cited paper, Andreoni and Levinson (2001) argue that, under very mild restrictions on preferences, increasing returns to scale in pollution abatement are a sufficient condition for pollution to ultimately fall to zero with income growth. We show that the existence of an Environmental Kuznets Curve depends on the relative magnitudes of the returns to scale in abatement and in gross pollution, rather than on their absolute values. Increasing returns to scale in abatement by themselves are not sufficient for pollution to fall with income unless the returns to scale of abatement exceed the returns to the production of gross pollution.

Economic impacts that entry regulations have within the fishery industry are well documented in the economics literature. This study looks at how fishery regulations will impact other sectors of a regional economy. By developing integrated models of fishery bioeconomics and dynamic, inter-industry economic linkages, the paper estimates sector-wise economic gains and losses over time from an entry regulation. A case study from India shows that primary fishing and processing sectors realize significant wage and profit gains after a period of transition. Sizable losses in wage and industry profits are incurred by non-fishery sectors but are smaller than the profit gains in the primary sectors. The paper makes policy recommendations on how to ease the adverse regional impacts of fishery policies.

This paper estimates WTP for drinking water quality in Brazil by combining averting behavior with contingent valuation data. Using bivariate probit models, alternative structures allowing for heteroscedasticity between and within data sources are incorporated by taking advantage of the different information content that characterizes each data source. We look at two covariates not yet examined in the literature when combining stated and revealed preferred data to explain the variance in the models: income and the bid in the contingent valuation questionnaire. Tests for parameter equality across data sets are performed. The results suggest that the specification of heteroscedasticity has a significant impact in WTP estimates and is crucial to legitimate the combination of data sets from different origins. The significant differences found in WTP between the two sources are discussed.

A revenue-sharing arrangement is under consideration between the USA and Western and Central Pacific Island Parties. When the ex-vessel price for cannery-grade skipjack tuna is above a minimum price, Pacific Island Parties would share in the increased revenue. This arrangement would provide economic incentives to these island nations to control fishing capacity and thereby increase revenues and economic rents. This potential arrangement raises the issue of which market and species prices to use as a benchmark, Bangkok or Pago-Pago; American Samoa and skipjack or yellowfin tuna. This paper, through a time series analysis of spatial price linkages, finds price leadership for skipjack in Bangkok. Macroeconomic and regional economic implications of enhanced price stability and higher revenues in the region are also discussed.

China has been implementing one of the world's largest ecological rehabilitation projects, the Natural Forest Protection Program (NFPP), to improve its fragile and precarious environmental conditions. This paper measures the socioeconomic impacts of the NFPP using input–output (I–O) models. We find that the NFPP will expand the annual output of the forest sectors by 5.8 billion Yuan and the whole economy by 8.9 billion Yuan by 2010. Employment will increase by 0.84 million in the forest sectors and by 0.93 million in the whole economy. Associated with the enormous expansion of forest protection and management are huge contributions to mitigating water runoff, soil erosion, flooding, and biodiversity loss. The investments and adjustments are thus worthwhile, if the program is properly implemented. The challenges are to transform loggers into tree planters and forest managers and to ensure that the financial and institutional commitments by the local and national governments will be materialized.