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Contracting for Environmental Property Rights: The Case of Vittel

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  • Depres, Christophe
  • Grolleau, Gilles
  • Mzoughi, Naoufel
Abstract
Based on an authentic case of contracting for environmental property rights, our paper shows several implications of applying the Coase's propositions. The case study adds empirical content to basic transaction costs concepts by analyzing the design and implementation of a contractual arrangement between a pollutee a bottler of mineral water Vittel and several polluting farmers. We analyze the bargaining between land and water rights owners and the bottler Vittel to determine how transaction cost issues (valuation disputes, bi-lateral monopoly conditions, and third-party effects) were overcome and how they succeeded in contracting for environmental property rights. We provide several comparisons of the Vittel case with other similar cases, leading to generalizations and testable propositions for environmental rights negotiations.

Suggested Citation

  • Depres, Christophe & Grolleau, Gilles & Mzoughi, Naoufel, 2005. "Contracting for Environmental Property Rights: The Case of Vittel," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24729, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae05:24729
    DOI: 10.22004/ag.econ.24729
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    Cited by:

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    2. Estelle Cantillon & Aurélie Slechten, 2023. "Market Design for the Environment," NBER Chapters, in: New Directions in Market Design, National Bureau of Economic Research, Inc.
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    4. François Facchini, 2008. "Droit de propriété et gestion des conflits agriculture - environnement," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00732380, HAL.
    5. Joël Houdet & Charlotte Pavageau & Michel Trommetter & Jacques Weber, 2009. "Accounting for changes in biodiversity and ecosystem services from a business perspective," Working Papers hal-00434450, HAL.
    6. Di Corato, Luca & Dosi, Cesare & Moretto, Michele, 2018. "Multidimensional auctions for long-term procurement contracts with early-exit options: The case of conservation contracts," European Journal of Operational Research, Elsevier, vol. 267(1), pages 368-380.
    7. Tatyana Deryugina & Frances C. Moore & Richard S.J. Tol, 2020. "Applications of the Coase Theorem," Working Paper Series 0820, Department of Economics, University of Sussex Business School.
    8. Douadia Bougherara & Gilles Grolleau & Naoufel Mzoughi, 2009. "The ‘make or buy’ decision in private environmental transactions," European Journal of Law and Economics, Springer, vol. 27(1), pages 79-99, February.
    9. Bingham, Logan Robert, 2021. "Vittel as a model case in PES discourse: Review and critical perspective," Ecosystem Services, Elsevier, vol. 48(C).
    10. Matsushima, Noriaki & Shinohara, Ryusuke, 2019. "Pre-negotiation commitment and internalization in public good provision through bilateral negotiations," Journal of Public Economics, Elsevier, vol. 175(C), pages 84-93.
    11. Alain‐Désiré Nimubona & Jean‐Christophe Pereau, 2022. "Negotiating over payments for wetland ecosystem services," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(3), pages 1507-1538, August.
    12. Ornella Boutry, 2010. "A New Institutional Approach of Resource Use Conflicts: The Case of Poitou-Charentes," Post-Print hal-00655829, HAL.
    13. Philippe Coent, 2023. "Payment for environmental services related to aquifers: a review of specific issues and existing programmes," Review of Agricultural, Food and Environmental Studies, Springer, vol. 104(3), pages 273-310, December.
    14. Edward L. Glaeser & David I. Laibson & José A. Scheinkman & Christine L. Soutter, 2000. "Measuring Trust," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 811-846.
      • Glaeser, Edward Ludwig & Laibson, David I. & Scheinkman, Jose A. & Soutter, Christine L., 2000. "Measuring Trust," Scholarly Articles 4481497, Harvard University Department of Economics.
    15. Schleyer, Christian & Theesfeld, Insa & Hagedorn, Konrad & Aznar, Olivier & Callois, Jean-Marc & Verburg, Rene & Yelkouni, Martin & Olsson, Johanna Alkan, 2007. "Approach towards an operational tool to apply institutional analysis for the assessment of policy feasibility within SEAMLESS-IF," Reports 9295, Wageningen University, SEAMLESS: System for Environmental and Agricultural Modelling; Linking European Science and Society.
    16. Zhang, Daowei, 2016. "Payments for forest-based environmental services: A close look," Forest Policy and Economics, Elsevier, vol. 72(C), pages 78-84.
    17. Houdet, Joël & Trommetter, Michel & Weber, Jacques, 2012. "Understanding changes in business strategies regarding biodiversity and ecosystem services," Ecological Economics, Elsevier, vol. 73(C), pages 37-46.
    18. Grolleau, Gilles & McCann, Laura M.J., 2012. "Designing watershed programs to pay farmers for water quality services: Case studies of Munich and New York City," Ecological Economics, Elsevier, vol. 76(C), pages 87-94.
    19. Steven G. Medema, 2020. "The Coase Theorem at Sixty," Journal of Economic Literature, American Economic Association, vol. 58(4), pages 1045-1128, December.
    20. Kuhfuss, L. & Burns, V. & Shortall, O. & Vinten, A., 2024. "Obstacles to local payments for ecosystem services schemes for water management at the catchment scale: A case study from Eastern Scotland," Land Use Policy, Elsevier, vol. 139(C).

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    More about this item

    Keywords

    Environmental Economics and Policy;

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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