10.2190/JR6P-1WAU-UUJU-0G47 JR6P1WAUUUJU0G47 3 Public Choice, Property Rights, and Environmental Quality 323 341 20020509 20020509 20020509 20020509 JR6P1WAUUUJU0G47.pdf http://baywood.metapress.com/link.asp?target=contribution&id=JR6P1WAUUUJU0G47 4 Frank G. Müller Concordia University The property rights approach to political economy is an attempt to integrate institutional economics into the marginalist methodology of neoclassical microeconomics. Since environmental quality and common property resources are applications of political economy, the property rights approach provides some new insights for the management of common property resources. Where values of competing uses of common property resources must be weighted, problems arise. Contrary to the Coasian Theorem, its value will depend on the assignment of property rights. However, where environmental objectives conflict with other economic objectives, such as full employment, property rights are no safeguard against environmental degradation, since majority rule can change existing rights at the cost of environmental quality. K. W. Kapp, The Nature and Significance of Institutional Economics, <i>Kyklos, 29</i>, pp. 209-232, 1976. A. Randall, Property Rights and Social Microeconomics, <i>Natural Resources Journal, 15</i>, pp. 729-744, 1975. E. Furubotn and S. Pejovich, Property Rights and Economic Theory: A Survey of Recent Literature, <i>Journal of Economic Literature, 10</i>, pp. 1137-1162, 1972. H. Demsetz, Toward a Theory of Property Rights, <i>American Economic Review</i>, Papers and Proceedings, <i>57</i>, pp. 347-359, 1967. A. Pigou, <i>The Economics of Welfare</i>, 4th Edition, Macmillan, London, 1932. S. Gordon, The Economic Theory of a Common-Property Resource: The Fishery, <i>Journal of Political Economy, 62</i>, pp. 555-579, 1954. S. Cheung, The Structure of a Contract and the Theory of a Non-Exclusive Resource, <i>Journal of Law and Economics, 13</i>, pp. 49-70, 1970. R. Coase, The Problem of Social Cost, <i>Journal of Law and Economics, 3</i>, pp. 1-44, 1960. W. J. Samuels, The Coase Theorem and the Study of Law and Economics, <i>Natural Resources Journal, 14</i>, pp. 1-33, 1974. Calabresi, Transactions Cost, Resource Allocation, and Liability Rules—A Comment, <i>Journal of Law and Economics, 11</i>, pp. 67-73, 1968. A. Randall, Coasian Externality Theory in a Policy Context, <i>Journal of Natural Resources, 14</i>, pp. 35-54, 1974. T. Crocker, Externalities, Property Rights and Transactions Costs: An Empirical Study, <i>Journal of Law and Economics, 14</i>, pp. 451-464, 1971. J. Krutilla and A. Fisher, <i>The Economics of Natural Environments</i>, Johns Hopkins University Press, Baltimore, 1975. K. W. Kapp, Environmental Disruption and Social Costs: A Challenge to Economics, <i>Political Economy of Environment Problems of Method</i>, Mouton and Co., Paris, pp. 91-101, 1972. H. Demsetz, The Exchange and Enforcement of Property Rights, <i>Journal of Law and Economics, 7</i>, pp. 11-26, 1964. V. Goldberg, Public Choice—Property Rights, <i>Journal of Economic Issues, 8</i>, pp. 555-579, 1974. J. Sax, Takings, Private Property and Public Rights, <i>Yale Law Journal, 81</i>, pp. 149-186, 1971. J. Buchanan and G. Tullock, <i>The Calculus of Consent</i>, University of Michigan Press, Ann Arbor, 1962. G. Tullock, Problems of Majority Voting, <i>Journal of Political Economy, 67</i>, pp. 571-579, 1959. J. Buchanan, The Coase Theorem and the Theory of the State, <i>Natural Resources Journal, 13</i>, pp. 579-594, 1973. D. Mueller, Public Choice: A Survey, <i>Journal of Economic Literature, 14</i>, pp. 395-433, 1976. P. Shapiro and A. Barkume, Political Choice and Environmental Quality, <i>Economic Analysis of Pressing Social Problems</i>, L. Phillips and H. Votey, (eds.), Rand McNally, Chicago, pp. 251-275, 1974. J. Harry, R. Gale and J. Hendee, Conservation: And Upper Class Social Movement, <i>Journal of Leisure Research, 1</i>, pp. 246-254, 1969. W. Baumol, Environmental Protection and Income Distribution, <i>Redistribution Through Public Choice</i>, H. Hochman and G. Peterson, (eds.), Columbia University Press, New York, pp. 93-114, 1974. R. Wagner, <i>The Public Economy</i>, Markham Publishing Company, Chicago, 1973.