Some Costs of Incomplete Property Rights with Regard to Federal Grazing Permits

Public land uses, other than raising livestock, have gained greater importance in policy proposals recently. Under the current property rights regime, the market solution of trading grazing permits is restricted; political action is used to allocate public land use. The effect of increased political pressure to emphasize noncommercial uses on grazing permits values is estimated. If the rights to grazing permits were secure and transferable, then the grazing permits values would not decrease in value as non-commercial uses become more desired. Results indicate the opposite effect occurs in that as non-commercial uses become more dear, grazing permit values have declined.