A Coasian perspective on informal rights assignment among waste pickers in the Philippines

Abstract

This paper examines in light of the Coase Theorem how delineation of a degree of enforceable rights for a previously open-access dumpsite in the Philippines would affect market transactions of waste pickers. It shows that a simplistic exclusion solution was not enough to constrain rent dissipation of recyclables in the primeval land fill. Some intervention of non-government organisations backed by some initial government assistance were found helpful in reducing transaction costs to sustain operations and promote innovations and initiatives from the scavengers themselves despite obvious external economic difficulties.