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Trust, cooperation, and implementation of sustainability programs: The case of Local Agenda 21

  • Owen, Ann L.
  • Videras, Julio

This paper provides evidence of the role of trust in ensuring desirable economic outcomes. We examine the implementation of Local Agenda 21, a regional sustainability initiative that requires the coordination of diverse decision-makers, in a sample of approximately 66 developing and industrialized countries. We use a game theoretic framework to motivate the empirical model. We find that higher levels of citizen trust are associated with more communities in a country adopting a program that requires coordination of multiple stakeholders. We also find that more programs are adopted when the country's institutional structure is likely to reduce the cost of coordination and when the benefits of the program, measured by environmental quality, would be expected to be greater.

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Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 68 (2008)
Issue (Month): 1-2 (December)
Pages: 259-272

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Handle: RePEc:eee:ecolec:v:68:y:2008:i:1-2:p:259-272
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolecon

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  1. Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer & Robert W. Vishny, 1996. "Trust in Large Organizations," NBER Working Papers 5864, National Bureau of Economic Research, Inc.
  2. Raquel Fernandez & Alessandra Fogli, 2005. "Culture: an empirical investigation of beliefs, work, and fertility," Staff Report 361, Federal Reserve Bank of Minneapolis.
  3. J. B. Van Huyck & R. C. Battalio & R. O. Beil, 2010. "Tacit coordination games, strategic uncertainty, and coordination failure," Levine's Working Paper Archive 661465000000000393, David K. Levine.
  4. Glaeser, Edward Ludwig & Laibson, David I. & Scheinkman, Jose A. & Soutter, Christine L., 2000. "Measuring Trust," Scholarly Articles 4481497, Harvard University Department of Economics.
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  6. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2006. "Does Culture Affect Economic Outcomes?," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 23-48, Spring.
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  10. Torvik, Ragnar, 2002. "Natural resources, rent seeking and welfare," Journal of Development Economics, Elsevier, vol. 67(2), pages 455-470, April.
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  12. Daron Acemoglu & Simon Johnson & James A. Robinson, 2000. "The Colonial Origins of Comparative Development: An Empirical Investigation," NBER Working Papers 7771, National Bureau of Economic Research, Inc.
  13. Paavola, Jouni & Adger, W. Neil, 2006. "Fair adaptation to climate change," Ecological Economics, Elsevier, vol. 56(4), pages 594-609, April.
  14. Zak, Paul J & Knack, Stephen, 2001. "Trust and Growth," Economic Journal, Royal Economic Society, vol. 111(470), pages 295-321, April.
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  16. Boulanger, Paul-Marie & Brechet, Thierry, 2005. "Models for policy-making in sustainable development: The state of the art and perspectives for research," Ecological Economics, Elsevier, vol. 55(3), pages 337-350, November.
  17. Marie-Laure Cabon-Dhersin & Shyama Ramani, 2005. "Does trust matter for R&D cooperation? A game theoretic examination," Theory and Decision, Springer, vol. 57(2), pages 143-180, 03.
  18. Damania, Richard & Fredriksson, Per G. & List, John A., 2003. "Trade liberalization, corruption, and environmental policy formation: theory and evidence," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 490-512, November.
  19. R. Quentin Grafton & Stephen Knowles, 2002. "Social Capital and National Environmental Performance: A Cross-sectional Analysis," Economics and Environment Network Working Papers 0206, Australian National University, Economics and Environment Network.
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