The Role of Property Rights in Determining the Environmental Quality-Income Relationship

42 Pages Posted: 25 Oct 2008 Last revised: 28 Jun 2014

See all articles by Haimanti Bhattacharya

Haimanti Bhattacharya

University of Utah

Dean Lueck

Indiana University Bloomington - The Vincent and Elinor Ostrom Workshop in Political Theory & Policy Analysis; Indiana University

Date Written: April 16, 2009

Abstract

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.

Keywords: Environment and Income, Property Rights

JEL Classification: Q56, P48

Suggested Citation

Bhattacharya, Haimanti and Lueck, Dean, The Role of Property Rights in Determining the Environmental Quality-Income Relationship (April 16, 2009). Arizona Legal Studies Discussion Paper No 09-22, Available at SSRN: https://ssrn.com/abstract=1288989 or http://dx.doi.org/10.2139/ssrn.1288989

Haimanti Bhattacharya (Contact Author)

University of Utah ( email )

Department of Economics
1645 E Campus Center Drive, #308
Salt Lake City, UT 84112
United States

HOME PAGE: http://www.econ.utah.edu/~bhattacharya

Dean Lueck

Indiana University Bloomington - The Vincent and Elinor Ostrom Workshop in Political Theory & Policy Analysis ( email )

513 N. Park Avenue
Bloomington, IN 47408–3895
United States

HOME PAGE: http://https://ostromworkshop.indiana.edu/people/directors/lueck-dean.html

Indiana University ( email )

107 S Indiana Ave
100 South Woodlawn
Bloomington, IN 47405
United States

HOME PAGE: http://https://economics.indiana.edu/home/people/lueck/

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