The Role of Property Rights in Determining the Environmental Quality-Income Relationship
University of Utah
University of Arizona
April 16, 2009
Arizona Legal Studies Discussion Paper No 09-22
This paper examines the role of property rights in shaping the relationship between environmental quality and income, largely missed in the literature. We develop an analytical framework that integrates the effects of property rights evolution, natural resource attributes, agent characteristics, and production technology on the environment-income relationship. The substantive strength of this framework lies in its ability to rationalize a wide range of environment-income relationships. The model shows that the U-shaped environment-income relationship, which is consistent with the Environmental Kuznets Curve (EKC) hypothesis, can arise only under specific model conditions. Thus the framework provides an additional explanation for non-universality of EKC. We provide evidence in support of our framework from case studies of various natural resources.
Number of Pages in PDF File: 42
Keywords: Environment and Income, Property Rights
JEL Classification: Q56, P48working papers series
Date posted: October 25, 2008 ; Last revised: April 23, 2012
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