The economics of the Arctic National Wildlife Refuge

Authors: Schaeffer, Emily; Block, Walter

Source: Energy & Environment, Volume 18, Number 1, January 2007 , pp. 75-85(11)

Publisher: Multi-Science Publishing Co Ltd

Key:

- Free Content

- New Content

- Subscribed Content

- Free Trial Content

Abstract:

Should the Arctic National Wildlife Refuge (ANWR) be used to drill for oil, or should this type of economic development be forbidden, in favor of protecting environmental amenities? In economics, this is a classical question of the allocation of resources, and we propose to answer it in a similar manner in this case, even though such reasoning is not typical of debates in this field. We answer the ANWR challenge with arguments favoring solutions emerging from private property arrangements, and provide an illustrative example of markets at work. We take neither side, but urge that the free enterprise system be allowed to address the issue. It is our claim that this is a superior system, as entrepreneurs who make mistakes suffer economic penalties, and this feedback mechanism is either entirely missing in political and bureaucratic institutions, or at the very least greatly attenuated there.

Keywords: ARCTIC NATIONAL WILDLIFE REFUGE; BIDDING; CONFLICT RESOLUTION; EXISTENCE VALUE; FREE MARKET ENVIRONMENTALISM; JEL CLASSIFICATION: K32; MARKETS; N5; P14; PRIVATE PROPERTY

Document Type: Regular paper

DOI: 10.1260/095830507780157221

The full text electronic article is available for purchase. You will be able to download the full text electronic article after payment.

$18.00 plus tax