IDEAS home Printed from https://ideas.repec.org/a/rje/bellje/v3y1972ispringp252-266.html
   My bibliography  Save this article

Pricing Pollution and Other Negative Externalities

Author

Listed:
  • Richard A. Tybout

Abstract

Equilibrium conditions are described for pollution or "externalities of production" treated as substitute products. The results are contrasted with those based on traditionally assumed fixed proportions between product and waste outputs. The "neutrality of bribery or compensation" argument is refuted. With linear homogeneous production functions, compensation leads to exhaustion of product; bribery does not. Only certain selected production functions and conditions can lead to positive aggregate profits in a bribe-paying industry. Requirements are described. The analysis is applied to a number of related issues: the blackmail problem, third party pricing, and public goods aspects.

Suggested Citation

  • Richard A. Tybout, 1972. "Pricing Pollution and Other Negative Externalities," Bell Journal of Economics, The RAND Corporation, vol. 3(1), pages 252-266, Spring.
    • Handle: RePEc:rje:bellje:v:3:y:1972:i:spring:p:252-266
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0005-8556%28197221%293%3A1%3C252%3APPAONE%3E2.0.CO%3B2-1&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Allan C. DeSerpa, 1992. "The Pure Economics of the Coase Theorem," Eastern Economic Journal, Eastern Economic Association, vol. 18(3), pages 287-304, Summer.
    2. Biing-Shiunn Yang & Chao-Cheng Mai, 2013. "The impact of uncertain environmental regulatory policy on optimal plant location and anti-pollution technology selection," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(3), pages 753-769, June.
    3. Kuechle, Graciela & Rios, Diego, 2012. "The Coase theorem reconsidered: The role of alternative activities," International Review of Law and Economics, Elsevier, vol. 32(1), pages 129-134.
    4. Yu Yan & Yiming Lei & Yuyang Tang & Xufeng Zhao, 2023. "Ineffectiveness of carbon cap-and-trade market," Energy & Environment, , vol. 34(7), pages 2317-2342, November.
    5. Luca Colombo & Gianluca Femminis & Alessandro Pavan, 2014. "Information Acquisition and Welfare," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(4), pages 1438-1483.
    6. Yamini Gupt & Emiel C. H. Veendorp, 1997. "Externalities in a Hotelling Model," Southern Economic Journal, John Wiley & Sons, vol. 64(1), pages 321-325, July.
    7. Steven G. Medema, 2020. "The Coase Theorem at Sixty," Journal of Economic Literature, American Economic Association, vol. 58(4), pages 1045-1128, December.
    8. Geoffrey Black & D. Allen Dalton & Samia Islam & Aaron Batteen, 2014. "The Coasean Framework of the New York City Watershed Agreement," Cato Journal, Cato Journal, Cato Institute, vol. 34(1), pages 1-32, Winter.
    9. Hennlock, Magnus, 2006. "Coasean Bargaining Games with Stochastic Stock Externalities," Working Papers in Economics 229, University of Gothenburg, Department of Economics.
    10. Adam Gifford Jr. & Courtenay C. Stone, 1973. "Externalities, Liability And The Coase Theorem:A Mathematical Analysis," Economic Inquiry, Western Economic Association International, vol. 11(3), pages 260-269, September.
    11. Aalbers, R.F.T., 1999. "On the implications of thresholds for economic science and environmental policy," Other publications TiSEM 1b70587b-5494-4f87-bf3a-7, Tilburg University, School of Economics and Management.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rje:bellje:v:3:y:1972:i:spring:p:252-266. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.rje.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.