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The Use of Group-Level Approaches to Environmental and Natural Resource Policy

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  • Matthew J. Kotchen
  • Kathleen Segerson

Abstract

Policies to address environmental and natural resource management are often implemented at the group level. The defining feature of such policies is that penalties or rewards are based on group rather than individual performance, or rights are allocated to a group rather than to individuals. This article discusses how group-level policies have been applied and studied across a variety of contexts in the literature on environmental and natural resource management. The aim is to identify common theoretical and empirical insights and lessons learned about the design and implementation of these instruments. A general finding is that group-level policies are most likely to be effective when rewards and/or penalties are designed to provide strong incentives for groups to meet targets in a cost-effective way. Moreover, to the extent that this requires coordination within the group, the effectiveness of policies will depend on whether the group has or can create its own institutions or mechanisms to facilitate and enforce that coordination.

Suggested Citation

  • Matthew J. Kotchen & Kathleen Segerson, 2020. "The Use of Group-Level Approaches to Environmental and Natural Resource Policy," Review of Environmental Economics and Policy, University of Chicago Press, vol. 14(2), pages 173-193.
    • Handle: RePEc:ucp:renvpo:doi:10.1093/reep/reaa002
    DOI: 10.1093/reep/reaa002
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    Cited by:

    1. Mark Agerton & Ben Gilbert & Gregory B. Upton Jr., 2021. "The Economics of Natural Gas Venting, Flaring and Leaking in U.S. Shale: An Agenda for Research and Policy," Working Papers 2021-02, Colorado School of Mines, Division of Economics and Business.
    2. François Bareille & Matteo Zavalloni & Davide Viaggi, 2023. "Agglomeration bonus and endogenous group formation," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(1), pages 76-98, January.
    3. Alain-Désiré Nimubona & Ahmet Ozkardas & Jean-Christophe Pereau, 2023. "Negotiations over the Provision of Multiple Ecosystem Services," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(2), pages 475-506, February.
    4. Kim, Hyunseok & Moschini, GianCarlo, 2021. "Emission Control by Voluntary Agreements: Oligopoly Markets with Green Consumers," 2021 Annual Meeting, August 1-3, Austin, Texas 313870, Agricultural and Applied Economics Association.

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