IDEAS home Printed from https://ideas.repec.org/p/ags/feemdp/55289.html
   My bibliography  Save this paper

Environmental Options and Technological Innovation: An Evolutionary Game Model

Author

Listed:
  • Antoci, Angelo
  • Borghesi, Simone
  • Galeotti, Marcello

Abstract

This paper analyses the effects on economic agents' behaviour of an innovative environmental protection mechanism that the Public Administration of a tourist region may adopt to attract visitors while protecting the environment. On the one hand, the Public Administration sells to the tourists an environmental call option that gives them the possibility of being (partially or totally) reimbursed if the environmental quality in the region turns out to be below a given threshold level. On the other hand, it offers the firms that adopt an innovative, non-polluting technology an environmental put option that allows them to get a reimbursement for the additional costs imposed by the new technology if the environmental quality is above the threshold level. The aim of the paper is to study the dynamics that arise with this financial mechanism from the interaction between the economic agents and the Public Administration in an evolutionary game context.

Suggested Citation

  • Antoci, Angelo & Borghesi, Simone & Galeotti, Marcello, 2009. "Environmental Options and Technological Innovation: An Evolutionary Game Model," Sustainable Development Papers 55289, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemdp:55289
    DOI: 10.22004/ag.econ.55289
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/55289/files/90-09.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.55289?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jorgen W. Weibull, 1997. "Evolutionary Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262731215, April.
    2. Costanza, Robert & Perrings, Charles, 1990. "A flexible assurance bonding system for improved environmental management," Ecological Economics, Elsevier, vol. 2(1), pages 57-75, April.
    3. Perrings, Charles, 1989. "Environmental bonds and environmental research in innovative activities," Ecological Economics, Elsevier, vol. 1(1), pages 95-110, February.
    4. Perrings,Charles, 1987. "Economy and Environment," Cambridge Books, Cambridge University Press, number 9780521340816, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fabio Castelli & Marcello Galeotti & Giovanni Rabitti, 2019. "Financial Instruments for Mitigation of Flood Risks: The Case of Florence," Risk Analysis, John Wiley & Sons, vol. 39(2), pages 462-472, February.
    2. Gianluca Iannucci & Federico Martellozzo & Filippo Randelli, 2022. "Sustainable development of rural areas: a dynamic model in between tourism exploitation and landscape decline," Journal of Evolutionary Economics, Springer, vol. 32(3), pages 991-1016, July.
    3. Angelo Antoci & Marcello Galeotti & Davide Radi, 2011. "Financial Tools for the Abatement of Traffic Congestion: A Dynamical Analysis," Computational Economics, Springer;Society for Computational Economics, vol. 38(3), pages 389-405, October.
    4. Wood, Aaron D. & Mason, Charles F. & Finnoff, David, 2016. "OPEC, the Seven Sisters, and oil market dominance: An evolutionary game theory and agent-based modeling approach," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PB), pages 66-78.
    5. Zi Tang & Minsi Zhang, 2023. "Evolutionary game analysis of energy saving behavior of tourism enterprises under carbon emission constraints," International Journal of Low-Carbon Technologies, Oxford University Press, vol. 18, pages 49-54.
    6. Simone Borghesi, 2020. "Satisfied or Reimbursed: An Innovative Index-Based Mechanism for the Environmental Protection of a Tourist Region," Sustainability, MDPI, vol. 12(21), pages 1-8, October.
    7. Esther Blanco & Javier Lozano, 2015. "Ecolabels, uncertified abatement, and the sustainability of natural resources: an evolutionary approach," Journal of Evolutionary Economics, Springer, vol. 25(3), pages 623-647, July.
    8. Juan M. Hernández & Jacques Bulchand-Gidumal & Manuel Chica, 2022. "The Role of the Tourism Network in the Coordination of Pandemic Control Measures," Sustainability, MDPI, vol. 14(23), pages 1-17, December.
    9. Mikhail Anufriev & Davide Radi & Fabio Tramontana, 2018. "Some reflections on past and future of nonlinear dynamics in economics and finance," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 41(2), pages 91-118, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Angelo Antoci & Marcello Galeotti & Paolo Russu, 2009. "Over-exploitation of open-access natural resources and global indeterminacy in an economic growth model," Working Papers - Mathematical Economics 2009-05, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    2. Antoci, Angelo & Borghesi, Simone & Russu, Paolo, 2012. "Environmental protection mechanisms and technological dynamics," Economic Modelling, Elsevier, vol. 29(3), pages 840-847.
    3. Simone Borghesi, 2020. "Satisfied or Reimbursed: An Innovative Index-Based Mechanism for the Environmental Protection of a Tourist Region," Sustainability, MDPI, vol. 12(21), pages 1-8, October.
    4. Angelo Antoci & Marcello Galeotti & Davide Radi, 2011. "Financial Tools for the Abatement of Traffic Congestion: A Dynamical Analysis," Computational Economics, Springer;Society for Computational Economics, vol. 38(3), pages 389-405, October.
    5. van den Bergh, Jeroen C.J.M., 2010. "Externality or sustainability economics?," Ecological Economics, Elsevier, vol. 69(11), pages 2047-2052, September.
    6. Jeroen C.J.M. van den Bergh, 2014. "Sustainable development in ecological economics," Chapters, in: Giles Atkinson & Simon Dietz & Eric Neumayer & Matthew Agarwala (ed.), Handbook of Sustainable Development, chapter 3, pages 41-54, Edward Elgar Publishing.
    7. Templet, Paul H., 1995. "Grazing the commons: an empirical analysis of externalities, subsidies and sustainability," Ecological Economics, Elsevier, vol. 12(2), pages 141-159, February.
    8. Gerard, David, 2000. "The law and economics of reclamation bonds," Resources Policy, Elsevier, vol. 26(4), pages 189-197, December.
    9. Sara Aghakazemjourabbaf & Margaret Insley, 2018. "Optimal timing of harzardous waste clean-up under an environmental bond an a strict liability rule," Working Papers 1803, University of Waterloo, Department of Economics, revised 06 Jan 2018.
    10. Perrings, Charles, 2001. "The economics of biological invasions," Land Use and Water Resources Research, University of Newcastle upon Tyne, Centre for Land Use and Water Resources Research, vol. 1, pages 1-9.
    11. Hourcade, Jean-Charles & Salles, Jean-Michel & Thery, Daniel, 1992. "Ecological economics and scientific controversies. Lessons from some recent policy making in the EEC," Ecological Economics, Elsevier, vol. 6(3), pages 211-233, December.
    12. Igarashi, Yoshiyuki & Coupal, Roger & Finnoff, David & Andersen, Matthew A., 2014. "Economics of Oil and Gas Development in the Presence of Reclamation and Bonding Requirements," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170600, Agricultural and Applied Economics Association.
    13. Aghakazemjourabbaf, Sara & Insley, Margaret, 2021. "Leaving your tailings behind: Environmental bonds, bankruptcy and waste cleanup," Resource and Energy Economics, Elsevier, vol. 65(C).
    14. Watzold, Frank, 2000. "Efficiency and applicability of economic concepts dealing with environmental risk and ignorance," Ecological Economics, Elsevier, vol. 33(2), pages 299-311, May.
    15. Adamson, Seabron & Sagar, Ambuj, 2002. "Managing climate risks using a tradable contingent security approach," Energy Policy, Elsevier, vol. 30(1), pages 43-51, January.
    16. Dufwenberg, Martin, 1997. "Some relationships between evolutionary stability criteria in games," Economics Letters, Elsevier, vol. 57(1), pages 45-50, November.
    17. Lichi Zhang & Yanyan Jiang & Junmin Wu, 2022. "Evolutionary Game Analysis of Government and Residents’ Participation in Waste Separation Based on Cumulative Prospect Theory," IJERPH, MDPI, vol. 19(21), pages 1-16, November.
    18. Kaika, Dimitra & Zervas, Efthimios, 2013. "The environmental Kuznets curve (EKC) theory. Part B: Critical issues," Energy Policy, Elsevier, vol. 62(C), pages 1403-1411.
    19. Tom Johnston & Michael Savery & Alex Scott & Bassel Tarbush, 2023. "Game Connectivity and Adaptive Dynamics," Papers 2309.10609, arXiv.org, revised Oct 2024.
    20. Gu, Tianqi & Xu, Weiping & Liang, Hua & He, Qing & Zheng, Nan, 2024. "School bus transport service strategies’ policy-making mechanism – An evolutionary game approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 182(C).

    More about this item

    Keywords

    Environmental Economics and Policy;

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:feemdp:55289. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/feemmit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.