Regulation and Evolution of Harvesting Rules and Compliance in Common Pool Resources
AbstractThe present paper models jointly the evolution of compliance to regulation and the evolution of the CPR stock in the context of an evolutionary process emerging from combining replicator dynamics, which describe the adoption of harvesting rules, with resource stock dynamics. This evolutionary approach characterizes the emergence of steady-state equilibrium harvesting rules or compliance levels under regulation, and the corresponding behavior of the steady-state equilibrium resource stock. This evolutionary approach suggests that coexistence of both cooperative and non-cooperative rules under regulation is possible. It is shown that stock effects on profits and a certain structure of auditing probabilities, could imply the emergence of a limit cycle in areas of low stock levels, as an equilibrium outcome for the level of compliance and the biomass stock. It is also shown that it is possible to modify regulation, by modifying penalties for regulatory violations, in order to attain full compliance equilibria and take the system out of low stock traps. It shown it might be easier for the regulator to obtain the full compliance if there is precommitment to fixed auditing probabilities.
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Bibliographic InfoPaper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number E2003/39.
Length: 36 pages
Date of creation: 2003
Date of revision:
Common pool resources; harvesting; regulation; replicator dynamics; compliance;
Find related papers by JEL classification:
- Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
- Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-01-18 (All new papers)
- NEP-ENV-2004-01-18 (Environmental Economics)
- NEP-RES-2004-01-18 (Resource Economics)
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