Rationing Consumption of Private Goods that Produce Collective Bads

This article looks at collective decisions over the limits to consumption of a private good that produces a collective bad and studies the way in which these decisions are affected by changes in the distribution of wealth. It shows that a democratic voting program reduces the maximum permissible consumption of the good, whereas a benevolent planner, and a voting program dominated by the rich, will increase this level. It also shows that, under all programs, production of the bad is driven down by increases in inequality.