Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/aug/augsbe/0315.html
   My bibliography  Save this paper

Market dynamics, dynamic resource management and environmental policy in the context of (strong) sustainability

Author

Abstract
In this paper, we investigate the relationship between market dynamics, dynamic resource management and environmental policy. In contrast to static market entry games, this paper draws attention to the effects of market dynamics on resource dynamics et vice versa, because (1) we show that feedback processes are necessary for obtaining a better understanding of what drives the dynamics between the evolution of common-pool resources and the number of harvesters and more importantly, (2) this analysis provides an environment discussing sustainability in an appropriate inasmuch dynamic way. The paper makes following major points: (1) Interpreting the monopoly-scenario as a non-cooperative solution and the firm coexistence solution as a cooperative solution, it is shown that the coexistence solution of this model implies a degenerate saddle-node equilibrium. (2) An increasing number of harvesters does not necessarily imply a lower stock of the common-pool resource in the long run. (3) The paper introduces a way establishing an output-sharing solution by implementing an output tax, which turns out to be a pure effort tax in the long run. (4) Strong resource sustainability is not possible, given cost reducing technological progress is relevant and policy interventions ceased. With respect to environmental policy, we can conclude that a tax scheme is not a substitute to a partnership solution dealing with the common-pool problem, but is treated as an instrument establishing such a solution in the sense of a policy mix approach.

Suggested Citation

  • Torben Klarl, 2010. "Market dynamics, dynamic resource management and environmental policy in the context of (strong) sustainability," Discussion Paper Series 315, Universitaet Augsburg, Institute for Economics.
    • Handle: RePEc:aug:augsbe:0315
    as

    Download full text from publisher

    File URL: https://opus.bibliothek.uni-augsburg.de/opus4/files/71108/315.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Erwin Bulte & Richard Damania, 2005. "A note on trade liberalization and common pool resources," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 883-899, August.
    2. Baumgärtner, Stefan & Quaas, Martin, 2010. "What is sustainability economics?," Ecological Economics, Elsevier, vol. 69(3), pages 445-450, January.
    3. Heintzelman, Martin D. & Salant, Stephen W. & Schott, Stephan, 2009. "Putting free-riding to work: A Partnership Solution to the common-property problem," Journal of Environmental Economics and Management, Elsevier, vol. 57(3), pages 309-320, May.
    4. Joïlle Noailly & Jeroen C.J.M. van den Bergh & Cees A. Withagen, 2003. "Evolution of harvesting strategies: replicator and resource dynamics," Journal of Evolutionary Economics, Springer, vol. 13(2), pages 183-200, April.
    5. Regev, U. & Gutierrez, A. P. & Schreiber, S. J. & Zilberman, D., 1998. "Biological and economic foundations of renewable resource exploitation," Ecological Economics, Elsevier, vol. 26(3), pages 227-242, September.
    6. Howarth, Richard B., 2007. "Towards an operational sustainability criterion," Ecological Economics, Elsevier, vol. 63(4), pages 656-663, September.
    7. Copeland Brian R., 1994. "International Trade and the Environment: Policy Reform in a Polluted Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 44-65, January.
    8. Stephan Schott & Neil Buckley & Stuart Mestelman & R. Muller, 2007. "Output sharing in partnerships as a common pool resource management instrument," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(4), pages 697-711, August.
    9. Walker, James M. & Gardner, Roy & Ostrom, Elinor, 1990. "Rent dissipation in a limited-access common-pool resource: Experimental evidence," Journal of Environmental Economics and Management, Elsevier, vol. 19(3), pages 203-211, November.
    10. Mazzucato, Mariana, 1998. "A computational model of economies of scale and market share instability," Structural Change and Economic Dynamics, Elsevier, vol. 9(1), pages 55-83, March.
    11. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    12. Jensen, Carsten Lynge, 2002. "Reduction of the fishing capacity in "common pool" fisheries," Marine Policy, Elsevier, vol. 26(3), pages 155-158, May.
    13. Ito, Masaru & Saijo, Tatsuyoshi & Une, Masashi, 1995. "The Tragedy of the Commons revisited Identifying behavioral principles," Journal of Economic Behavior & Organization, Elsevier, vol. 28(3), pages 311-335, December.
    14. Lucas Bretschger & Sjak Smulders, 2007. "Sustainable Resource Use and Economic Dynamics," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(1), pages 1-13, January.
    15. Ruseski, Gorazd, 1998. "International Fish Wars: The Strategic Roles for Fleet Licensing and Effort Subsidies," Journal of Environmental Economics and Management, Elsevier, vol. 36(1), pages 70-88, July.
    16. Lopez, Ramon, 1998. "The Tragedy of the Commons in Cote d'Ivoire Agriculture: Empirical Evidence and Implications for Evaluating Trade Policies," The World Bank Economic Review, World Bank, vol. 12(1), pages 105-131, January.
    17. Verspagen, B., 2000. "Economic growth and technological change: an evolutionary interpretation," Working Papers 00.12, Eindhoven Center for Innovation Studies.
    18. Illge, Lydia & Schwarze, Reimund, 2009. "A matter of opinion--How ecological and neoclassical environmental economists and think about sustainability and economics," Ecological Economics, Elsevier, vol. 68(3), pages 594-604, January.
    19. Jeroen Bergh, 2007. "Evolutionary thinking in environmental economics," Journal of Evolutionary Economics, Springer, vol. 17(5), pages 521-549, October.
    20. Kjell A. Brekke, 1997. "Economic Growth and the Environment," Books, Edward Elgar Publishing, number 807.
    21. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62(2), pages 124-124.
    22. Sandal, Leif K. & Steinshamn, Stein I., 2004. "Dynamic Cournot-competitive harvesting of a common pool resource," Journal of Economic Dynamics and Control, Elsevier, vol. 28(9), pages 1781-1799, July.
    23. Jean-Philippe Atzenhoffer, 2010. "A Note on Imitation-Based Competition in Common-Pool Resources," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(2), pages 299-304, October.
    24. De Groot, Rudolf & Van der Perk, Johan & Chiesura, Anna & van Vliet, Arnold, 2003. "Importance and threat as determining factors for criticality of natural capital," Ecological Economics, Elsevier, vol. 44(2-3), pages 187-204, March.
    25. Walker, James M & Gardner, Roy, 1992. "Probabilistic Destruction of Common-Pool Resources: Experimental Evidence," Economic Journal, Royal Economic Society, vol. 102(414), pages 1149-1161, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Schnier, Kurt Erik, 2009. "Spatial externalities and the common-pool resource mechanism," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 402-415, May.
    2. Herings, P.J.J. & Meshalkin, A.V. & Predtetchinski, A., 2012. "A folk theorem for bargaining games," Research Memorandum 055, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    3. Schnier, Kurt E. & Anderson, Christopher M., 2006. "Decision making in patchy resource environments: Spatial misperception of bioeconomic models," Journal of Economic Behavior & Organization, Elsevier, vol. 61(2), pages 234-254, October.
    4. Nicolas Querou, 2018. "Interacting collective action problems in the commons," Working Papers hal-02790606, HAL.
    5. Diana Dijk & Eligius M. T. Hendrix & Rene Haijema & Rolf A. Groeneveld & Ekko C. Ierland, 2017. "An Adjustment Restriction on Fish Quota: Resource Rents, Overcapacity and Recovery of Fish Stock," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(2), pages 203-230, June.
    6. Raja R Timilsina & Yutaka Kobayashi & Koji Kotani, 2022. "Non-kinship successors for resource sustainability," Working Papers SDES-2022-2, Kochi University of Technology, School of Economics and Management, revised Jan 2022.
    7. Casari, Marco & Plott, Charles R., 2003. "Decentralized management of common property resources: experiments with a centuries-old institution," Journal of Economic Behavior & Organization, Elsevier, vol. 51(2), pages 217-247, June.
    8. Jean-Philippe Atzenhoffer, 2010. "A Note on Imitation-Based Competition in Common-Pool Resources," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(2), pages 299-304, October.
    9. Javier Aliaga Lordemann, 2021. "Experimental Field Evidence of Common Pool Resources: The Water Judge in Bolivia," Development Research Working Paper Series 01/2021, Institute for Advanced Development Studies.
    10. Kimbrough, Erik O. & Vostroknutov, Alexander, 2015. "The social and ecological determinants of common pool resource sustainability," Journal of Environmental Economics and Management, Elsevier, vol. 72(C), pages 38-53.
    11. Kostas Bithas, 2020. "A bioeconomic approach to sustainable development: Incorporating ecological thresholds within intergenerational efficiency," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 772-780, July.
    12. Fischer, Maria-Elisabeth & Irlenbusch, Bernd & Sadrieh, Abdolkarim, 2004. "An intergenerational common pool resource experiment," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 811-836, September.
    13. Maas, Alexander & Goemans, Christopher & Manning, Dale & Kroll, Stephan & Brown, Thomas, 2017. "Dilemmas, coordination and defection: How uncertain tipping points induce common pool resource destruction," Games and Economic Behavior, Elsevier, vol. 104(C), pages 760-774.
    14. Jan Tore Solstad & Kjell Arne Brekke, 2011. "Does the Existence of a Public Good Enhance Cooperation among Users of Common-Pool Resources?," Land Economics, University of Wisconsin Press, vol. 87(2), pages 335-345.
    15. Tatsuyoshi Saijo & Yutaka Kobayashi, 2014. "The Instability of the Nash Equilibrium in Common-Pool Resources," Working Papers SDES-2014-5, Kochi University of Technology, School of Economics and Management, revised Oct 2014.
    16. Erling Moxnes, 1998. "Not Only the Tragedy of the Commons: Misperceptions of Bioeconomics," Management Science, INFORMS, vol. 44(9), pages 1234-1248, September.
    17. Drupp, Moritz A. & Baumgärtner, Stefan & Meyer, Moritz & Quaas, Martin F. & von Wehrden, Henrik, 2020. "Between Ostrom and Nordhaus: The research landscape of sustainability economics," Ecological Economics, Elsevier, vol. 172(C).
    18. Remig, Moritz C., 2015. "Unraveling the veil of fuzziness: A thick description of sustainability economics," Ecological Economics, Elsevier, vol. 109(C), pages 194-202.
    19. Kotchen, Matthew J. & Salant, Stephen W., 2011. "A free lunch in the commons," Journal of Environmental Economics and Management, Elsevier, vol. 61(3), pages 245-253, May.
    20. Coxhead, Ian A. & Jayasuriya, Sisira, 2003. "Trade, Liberalization, Resource Degradation and Industrial Pollution in Developing Countries: An Integrated Analysis," Staff Papers 12691, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.

    More about this item

    Keywords

    sustainability; resource management; environmental policy; common resources; population dynamics;
    All these keywords.

    JEL classification:

    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aug:augsbe:0315. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Simone Raab-Kratzmeier (email available below). General contact details of provider: https://edirc.repec.org/data/ivaugde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.