This article develops a framework for environmental policy analysis based on an encompassing assessment of transaction costs. This approach emphasizes the <italic>ex ante</italic> costs of establishing environmental entitlements, and the <italic>ex post</italic> costs of administrating, monitoring, and enforcing them. The...

The significance of transaction costs for the analysis of environmental policy is increasingly recognized. This article focuses on one aspect of the topic: the political uncertainty and transaction costs of establishing environmental rights. Our contribution is to model the political process...