User Fees With “Feebates”: Meeting Revenue and Allocative Objectives Without Tradeoff, Even When Numbers are Small

User fees are combined with “feebates” in order to meet separate goals of efficiency and revenues in the control of pollution externalities or allocation of common property resources. Without sacrifice to efficiency in meeting allocative targets, revenues can be chosen from within the range of zero to that which would occur under a simple price approach. The feebate/user fee combination can be used with equal efficiency with or without marketable permits, as politics allows. In either case, and unlike for a simple marketable permit system, the feebate/user fee combination achieves its objectives whether rights holders are many or few.