Corbett A. Grainger
Department of Agricultural and Applied Economics
University of Wisconsin, Madison
Madison, WI 53706
NBER Working Papers and Publications
|January 2015||Property Rights, Regulatory Capture, and Exploitation of Natural Resources|
with Christopher Costello: w20859
We study how the strength of property rights to individual extractive firms affects a regulator’s choice over exploitation rates for a natural resource. The regulator is modeled as an intermediary between current and future resource harvesters, rather than between producers and consumers, as in the traditional regulatory capture paradigm. When incumbent resource users have weak property rights, they have an incentive to pressure the regulator to allow resource extraction at an inefficiently rapid rate. In contrast, when property rights are strong, this incentive is minimized or eliminated. We build a theoretical model in which different property right institutions can be compared for their incentives to exert influence on the regulator. The main theoretical prediction - that stronger indiv...
|May 2011||The Value of Secure Property Rights: Evidence from Global Fisheries|
with Christopher Costello: w17019
Property rights are commonly touted as a solution to common pool resource problems. But in practice the security of these property rights varies substantially owing to differences in design. In fisheries, the design of individual transferable quotas (ITQs) varies widely; the consequences of these design differences on economic outcomes has not been studied. To test whether the security of these property rights affects asset values, we compile a unique dataset to examine the relationship between the exclusivity of property rights and the dividend price ratios for ITQs. We find evidence that stronger property rights lead to higher asset values and lower dividend price ratios in ITQ fisheries. This pecuniary effect of property rights security informs the current policy debate on the design of...
|August 2009||Who Pays a Price on Carbon?|
with Charles D. Kolstad: w15239
We use the 2003 Consumer Expenditure Survey and emissions estimates from an input-output model to estimate the incidence of a price on carbon induced by a cap-and-trade program or carbon tax in the US context. We present results on how much difference income deciles pay for a carbon tax as well as which industries see the largest increase in costs due to a carbon tax. We illustrate the main determinant of the regressivity: consumption patterns for energy-intensive goods. We find that a policy targeting CO2 from energy consumption is more regressive than a price on all emissions. Furthermore, on a per-capita basis a carbon price is much more regressive than calculations at the household level. We discuss policy options to offset the adverse distributional effects of a carbon emissions poli...
Published: Corbett Grainger & Charles Kolstad, 2010.
"Who Pays a Price on Carbon?,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 46(3), pages 359-376, July.
citation courtesy of