Abstract
This paper focuses on some important choices that have to be made in the design of an environmental regulation system of a recreational activity that is exercised on private property and causes external effect on outsiders. Many types of tourist and recreational uses of private property exhibit these features, such as sport fishing; mountain biking; hiking; motorized and non-motorized boating, road or off-road driving; camping; caravans and mobile-homes parking; etc. Under a licence regulation of snowmobile driving that has been proposed in Sweden, a limited number of zonal licences would be sold at predetermined prices. We develop a ‘classic-style’ regulation model and show that a socially efficient solution can be obtained in a licence system where landowners are allowed to sell licences but not to collect penalty charges.
Get full access to this article
View all access options for this article.