Externalities

Pigovian policy is developed in economic theory as an efficient resolution to externality problems. The use of this type of policy to resolve real-world externality problems, including climate change in the form of carbon taxes, assumes that the Pigovian policy result derived in theory holds in the real world. By examining the bridging conditions from theory to the real world, I argue that this assumption holds only in an ambiguously defined subset of externalities. It is thus unclear when Pigovian policy (...) could be coherently applied, which is problematic given its widespread use in critical policy contexts. (shrink)

Space warfare is warfare that takes place in outer space. It involves ground-to-space, space-to-ground, and space-to-space violence between nations or peoples. The violence can involve kinetic weapons, directed energy weapons, or electronic destruction. International law, specifically, the Outer Space Treaty and SALT I, currently bans weapons of mass destruction from being put into space, although one wonders if one country were to violate the ban whether others would follow suit. In this paper, I argue that that if there is a (...) non-consequentialist morality of space war, then one country can unjustly attack a second country’s space vehicles. This in turn depends on property rights. But there is no adequate theory of property rights with regard to space war. Hence, there is no non-consequentialist morality of a space war. (shrink)

Negative externalities pervade immigration law. For example, immigration rules can cause negative economic externalities by barring foreign nationals whose participation would make labor markets more efficient. On the other hand, sweeping executive-branch measures to assist immigrants may unduly expand executive power and yield adverse effects on governance. This essay divides immigration's negative externalities into three categories: economic, relational, and rhetorical. It then argues for specific legal and policy measures, including tailored executive discretion over deportation; more robust court review of immigration (...) restrictions that affect foreign nationals outside the United States; and classifying deportation of lawful permanent residents of the United States as punishment requiring advance notice that specific acts can prompt removal, like the notice the Constitution's Ex Post Facto Clause requires for criminal laws. (shrink)

The notion that immigrants have a right to immigrate to the U.S. appears to conflict with the government’s or citizens’ property rights. Michael Huemer has given one of the most interesting and provocative arguments on immigration in years. It turns the dominant view on its head. Unfortunately, the argument fails. U.S. citizens own land, individually, collectively, and via their government. For immigrants to gain a right to enter on it, Huemer must think that the landowners have lost their rights to (...) their land, the landowners’ rights are overridden, or the landowners’ rights are undermined. He does not show that any of these are true. A separate issue and one not discussed here is whether it is a wise policy to reduce or end immigration to the United States. (shrink)

It is common to posit a clear opposition between the values served by property systems and the value of the environment. To give the environment its due, this view holds, the role of private property needs to be limited. Support for this has been said to be found in Locke’s famous ‘enough and as good’ proviso. This article shows that this opposition is mistaken, and corrects the implied reading of Locke’s proviso. In reality, there is no opposition between property and (...) the environment. This is shown using Locke’s theory of appropriation, as well as the real-life case of instream water appropriation. (shrink)

A number of writers have drawn on Hayek’s epistemic defence of market institutions to argue that free-markets and tort law are best placed to overcome the knowledge problems associated with the environmental sphere. This paper argues to the contrary, that this Austrian School approach itself suffers from significant knowledge problems. The first of these relates to the ability of Austrian economics to assign victim compensation and the second to the difficulty of establishing causation in complex environmental problems. The paper will (...) also show how alternative approaches may not suffer from these epistemic challenges and are better placed to overcome them. (shrink)

Joseph Newhard (2017) argues that a libertarian anarchist society would be at a serious military disadvantage if it extended the nonaggression principle to include potential foreign invaders. He goes so far as to recommend cultivating the ability to launch a nuclear attack on foreign cities. In contrast, I argue that the free society would derive its strength from a total commitment to property rights and the protection of innocent life. Both theory and history suggest that a free society would be (...) capable of defending itself, and indeed that it would probably use other means to avoid military conflict altogether. (shrink)

This essay offers a standard by which to assess the feasibility of market anarchism. In anarchist thought, the concept of feasibility concerns both the ability and the willingness of private defense agencies to liberate their clients from state oppression. I argue that the emergence of a single stateless pocket of effective, privately-provided defense for a “reasonable” length of time is sufficient to affirm feasibility. I then consider the failure of private defense agencies to achieve even this standard. Furthermore, I identify (...) five possible explanations for the conspicuous absence of private defense agencies. These explanations are entrepreneurial, technological, or economic in nature, or result from a lack of consumer demand or a lack of incentive for violence specialists to refrain from aggression. Of these, only an economic deficiency renders anarchism intrinsically unworkable. (shrink)

In Escape from Leviathan, Jan Lester sets out a conception of liberty as absence of imposed cost which, he says, advances no moral claim and does not premise an assignm..

Contemporary food supply chains are generating externalities with high economic and social costs, notably in public health terms through the rise in diet-related non-communicable disease. The UK State is developing policy strategies to tackle these public health problems alongside intergovernmental responses. However, the governance of food supply chains is conducted by, and across, both private and public spheres and within a multilevel framework. The realities of contemporary food governance are that private interests are key drivers of food supply chains and (...) have institutionalized a great deal of standards-setting and quality, notably from their locations in the downstream and midstream sectors. The UK State is designing some downstream and some midstream interventions to ameliorate the public health impacts of current food consumption patterns in England. The UK State has not addressed upstream interventions towards public health diet at the primary food production and processing stages, although traditionally it has shaped agricultural policy. Within the realities of contemporary multilevel governance, the UK State must act within the contexts set by the international regimes of the Common Agricultural Policy and the World Trade Organization agreements, notably on agriculture. The potential for further upstream agricultural policy reform is considered as part of a wider policy approach to address the public health externalities issuing from contemporary food supply chains within this multilevel governance context. (shrink)

In this paper, we study the auction to allocate an indivisible good when each potential buyer has a private and independent valuation for the item and suffers a negative externality if a competitor acquires it. In that case, the outside option of each buyer is mechanism-dependent, which implies that participation is endogenous. As several works in the literature have shown, the optimal auction entails strong threats to induce full entry and maximal expected revenue. This results from the full commitment assumption, (...) which ensures that threats are credible. We show that absent credible threats, the entry process does not lead to full participation: the equilibrium entails screening of agents in the entry stage and a trade-off between reserve prices and entry fees. Besides, we discuss the conditions under which the impossibility to use threats does not prevent the seller from ensuring a minimal screening and reaching a high expected revenue. (shrink)

We study the one-seller/two-buyer bargaining problem with negative identity-dependent externalities with an alternating offer bargaining model in which new owners of the object have the opportunity of resale. We identify the generically unique subgame perfect equilibrium outcome. The resale opportunity increases the competition among the buyers and therefore benefits the seller. When competition between buyers is very fierce, the seller may prefer to respond to bids rather than to propose an offer herself: a first-mover disadvantage.

(1992). Cultural goods and their positive externalities. World Futures: Vol. 33, Culture and Development: European Experiences and Challenges A Special Research Report of the European Culture Impact Research Consortium (EUROCIRCON), pp. 181-187.

A standard assumption in the economics of law enforcement is that the probability of a violator being punished depends only on the resources devoted to enforcement. However, it is often true that the productivity of enforcement resources decreases with the number of violators. In this paper, an individual who violates the law provides a positive externality for other offenders because the probability of being punished decreases with the number of individuals violating the law. This externality explains the existence of correlation (...) between individuals' decisions to break a law. The model evaluates the implications when determining the socially optimal enforcement expenditure, focusing specifically on the case of neighborhood crime. In particular, using a parametrized functional form, I show that neighborhood externalities will enhance or impede enforcement, depending on the crime rate. (shrink)