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On the use of group performance and rights for environmental protection and resource management

Author

Listed:
  • Matthew J. Kotchen

    (School of Forestry and Environmental Studies, Yale University, New Haven, CT 06511-2387)

  • Kathleen Segerson

    (Department of Economics, University of Connecticut, Storrs, CT 06269-1063)

Abstract

Environmental and natural resource (ENR) policies that focus on group outcomes are common but have received relatively less attention from economists than policies based on individual behavior. Existing research tends to focus on particular contexts, such as water or air quality, fisheries, or land use. This paper discusses unifying themes of group performance policies, along with their advantages and disadvantages. We discuss a range of specific policy instruments, including group-based taxes, subsidies, and fixed penalties. We show how, in principle, group-based policies can be designed to achieve efficient provision of group-level environmental performance; however, in some cases, group policies can lead to suboptimal outcomes. We discuss the incentives for collaboration that can arise when regulators impose group performance policies, and the role that it can play in promoting efficient outcomes. We argue that the success of group-based policies will depend both on how the policy is designed (i.e., the external rewards and penalties) and on how the group operates. This implies potential complementarities between “top-down” regulatory interventions based on group performance and “bottom-up” within-group incentives for self-governance. Our discussion suggests that group performance policies should play a more prominent role in the suite of policy instruments considered by scholars and policymakers concerned with ENR management.

Suggested Citation

  • Matthew J. Kotchen & Kathleen Segerson, 2019. "On the use of group performance and rights for environmental protection and resource management," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 116(12), pages 5285-5292, March.
    • Handle: RePEc:nas:journl:v:116:y:2019:p:5285-5292
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    Citations

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    Cited by:

    1. Rodriguez, Luz A. & Pfaff, Alexander & Velez, Maria Alejandra, 2019. "Graduated stringency within collective incentives for group environmental compliance: Building coordination in field-lab experiments with artisanal gold miners in Colombia," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    2. Timilsina, Raja R. & Kotani, Koji & Nakagawa, Yoshinori & Saijo, Tatsuyoshi, 2022. "Intragenerational deliberation and intergenerational sustainability dilemma," European Journal of Political Economy, Elsevier, vol. 73(C).
    3. Maarten Pieter Schinkel & Leonard Treuren, 2021. "Corporate Social Responsibility by Joint Agreement," Tinbergen Institute Discussion Papers 21-063/VII, Tinbergen Institute.
    4. Francois Bareille & Matteo Zavalloni & Meri Raggi & Davide Viaggi, 2021. "Cooperative Management of Ecosystem Services: Coalition Formation, Landscape Structure and Policies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(2), pages 323-356, June.
    5. Rodriguez, Luz A. & Velez, María Alejandra & Pfaff, Alexander, 2021. "Leaders’ distributional & efficiency effects in collective responses to policy: Lab-in-field experiments with small-scale gold miners in Colombia," World Development, Elsevier, vol. 147(C).
    6. Izquierdo-Tort, Santiago & Corbera, Esteve & Barceinas Cruz, Alicia & Naime, Julia & Angélica Vázquez-Cisneros, Paola & Carabias Lillo, Julia & Castro-Tovar, Elisa & Ortiz Rosas, Fiorella & Rubio, N, 2021. "Local responses to design changes in payments for ecosystem services in Chiapas, Mexico," Ecosystem Services, Elsevier, vol. 50(C).
    7. Rosas-Munoz, Juan & Espinola-Arredondo, Ana & Munoz-Garcia, Felix, 2022. "Don't Leave the Regulator Alone in the Commons: How Fishing Cooperatives Can Help Ameliorate Inefficiencies," Working Papers 2022-1, School of Economic Sciences, Washington State University.

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