Does the Coase theorem hold in real markets? An application to the negotiations between waterworks and farmers in Denmark

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Standard

Does the Coase theorem hold in real markets? An application to the negotiations between waterworks and farmers in Denmark. / Abildtrup, Jens ; Jensen, Frank; Dubgaard, Alex.

I: Journal of Environmental Management, Bind 93, Nr. 1, 2012, s. 169-176.

Publikation: Bidrag til tidsskriftTidsskriftartikelfagfællebedømt

Harvard

Abildtrup, J, Jensen, F & Dubgaard, A 2012, 'Does the Coase theorem hold in real markets? An application to the negotiations between waterworks and farmers in Denmark', Journal of Environmental Management, bind 93, nr. 1, s. 169-176. https://doi.org/10.1016/j.jenvman.2011.09.004

APA

Abildtrup, J., Jensen, F., & Dubgaard, A. (2012). Does the Coase theorem hold in real markets? An application to the negotiations between waterworks and farmers in Denmark. Journal of Environmental Management, 93(1), 169-176. https://doi.org/10.1016/j.jenvman.2011.09.004

Vancouver

Abildtrup J, Jensen F, Dubgaard A. Does the Coase theorem hold in real markets? An application to the negotiations between waterworks and farmers in Denmark. Journal of Environmental Management. 2012;93(1):169-176. https://doi.org/10.1016/j.jenvman.2011.09.004

Author

Abildtrup, Jens ; Jensen, Frank ; Dubgaard, Alex. / Does the Coase theorem hold in real markets? An application to the negotiations between waterworks and farmers in Denmark. I: Journal of Environmental Management. 2012 ; Bind 93, Nr. 1. s. 169-176.

Bibtex

@article{b563496c9900491098f8106fd0c1c2e1,
title = "Does the Coase theorem hold in real markets? An application to the negotiations between waterworks and farmers in Denmark",
abstract = "The Coase theorem depends on a number of assumptions, among others, perfect information about each other{\textquoteright}s payoff function, maximising behaviour and zero transaction costs. An important question is whether the Coase theorem holds for real market transactions when these assumptions are violated. This is the question examined in this paper. We consider the results of Danish waterworks{\textquoteright} attempts to establish voluntary cultivation agreements with Danish farmers. A survey of these negotiations shows that the Coase theorem is not robust in the presence of imperfect information, non-maximising behaviour and transaction costs. Thus, negotiations between Danish waterworks and farmers may not be a suitable mechanism to achieve efficiency in the protection of groundwater quality due to violations of the assumptions of the Coase theorem. The use of standard schemes or government intervention (e.g. expropriation) may, under some conditions, be a more effective and cost efficient approach for the protection of vulnerable groundwater resources in Denmark.",
author = "Jens Abildtrup and Frank Jensen and Alex Dubgaard",
year = "2012",
doi = "10.1016/j.jenvman.2011.09.004",
language = "English",
volume = "93",
pages = "169--176",
journal = "Journal of Environmental Management",
issn = "0301-4797",
publisher = "Academic Press",
number = "1",

}

RIS

TY - JOUR

T1 - Does the Coase theorem hold in real markets? An application to the negotiations between waterworks and farmers in Denmark

AU - Abildtrup, Jens

AU - Jensen, Frank

AU - Dubgaard, Alex

PY - 2012

Y1 - 2012

N2 - The Coase theorem depends on a number of assumptions, among others, perfect information about each other’s payoff function, maximising behaviour and zero transaction costs. An important question is whether the Coase theorem holds for real market transactions when these assumptions are violated. This is the question examined in this paper. We consider the results of Danish waterworks’ attempts to establish voluntary cultivation agreements with Danish farmers. A survey of these negotiations shows that the Coase theorem is not robust in the presence of imperfect information, non-maximising behaviour and transaction costs. Thus, negotiations between Danish waterworks and farmers may not be a suitable mechanism to achieve efficiency in the protection of groundwater quality due to violations of the assumptions of the Coase theorem. The use of standard schemes or government intervention (e.g. expropriation) may, under some conditions, be a more effective and cost efficient approach for the protection of vulnerable groundwater resources in Denmark.

AB - The Coase theorem depends on a number of assumptions, among others, perfect information about each other’s payoff function, maximising behaviour and zero transaction costs. An important question is whether the Coase theorem holds for real market transactions when these assumptions are violated. This is the question examined in this paper. We consider the results of Danish waterworks’ attempts to establish voluntary cultivation agreements with Danish farmers. A survey of these negotiations shows that the Coase theorem is not robust in the presence of imperfect information, non-maximising behaviour and transaction costs. Thus, negotiations between Danish waterworks and farmers may not be a suitable mechanism to achieve efficiency in the protection of groundwater quality due to violations of the assumptions of the Coase theorem. The use of standard schemes or government intervention (e.g. expropriation) may, under some conditions, be a more effective and cost efficient approach for the protection of vulnerable groundwater resources in Denmark.

U2 - 10.1016/j.jenvman.2011.09.004

DO - 10.1016/j.jenvman.2011.09.004

M3 - Journal article

VL - 93

SP - 169

EP - 176

JO - Journal of Environmental Management

JF - Journal of Environmental Management

SN - 0301-4797

IS - 1

ER -

ID: 34516592