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Can abatement efforts in a common pool resource promote overexploitation of the resource?

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  • Surve, Aditi A.
  • Espinola-Arredondo, Ana

Abstract

We examine a common pool resource (CPR) where appropriations deteriorate the quality of the resource and, thus, its impact on the exploitation of the CPR. We focus on two settings: (i) firms use the CPR without abatement efforts, and (ii) abatement is allowed. We provide comparisons between these two settings and identify socially optimal appropriation levels. We find that (i) higher quality of the CPR could induce firms to overuse the resource, and (ii) first-period appropriations with abatement decrease in the regeneration rate. However, abatement induces an overuse of the resource when the quality of the CPR improves.

Suggested Citation

  • Surve, Aditi A. & Espinola-Arredondo, Ana, 2025. "Can abatement efforts in a common pool resource promote overexploitation of the resource?," Environment and Development Economics, Cambridge University Press, vol. 30(4), pages 315-338, August.
    • Handle: RePEc:cup:endeec:v:30:y:2025:i:4:p:315-338_4
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