Market dynamics, dynamic resource management and environmental policy in the context of (strong) sustainability
In this paper, we investigate the relationship between market dynamics, dynamic resource management and environmental policy. In contrast to static market entry games, this paper draws attention to the effects of market dynamics on resource dynamics et vice versa, because (1) we show that feedback processes are necessary for obtaining a better understanding of what drives the dynamics between the evolution of common-pool resources and the number of harvesters and more importantly, (2) this analysis provides an environment discussing sustainability in an appropriate inasmuch dynamic way. The paper makes following major points: (1) Interpreting the monopoly-scenario as a non-cooperative solution and the firm coexistence solution as a cooperative solution, it is shown that the coexistence solution of this model implies a degenerate saddle-node equilibrium. (2) An increasing number of harvesters does not necessarily imply a lower stock of the common-pool resource in the long run. (3) The paper introduces a way establishing an output-sharing solution by implementing an output tax, which turns out to be a pure effort tax in the long run. (4) Strong resource sustainability is not possible, given cost reducing technological progress is relevant and policy interventions ceased. With respect to environmental policy, we can conclude that a tax scheme is not a substitute to a partnership solution dealing with the common-pool problem, but is treated as an instrument establishing such a solution in the sense of a policy mix approach.
|Date of creation:||Dec 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 821 598 4060
Fax: +49 821 598 4217
Web page: http://www.wiwi.uni-augsburg.de/vwl/institut
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Joïlle Noailly & Jeroen C.J.M. van den Bergh & Cees A. Withagen, 2003.
"Evolution of harvesting strategies: replicator and resource dynamics,"
Journal of Evolutionary Economics,
Springer, vol. 13(2), pages 183-200, 04.
- Joelle Noailly & Jeroen van den Bergh & Cees Withagen, 2001. "Evolution of Harvesting Strategies: Replicator and Resource Dynamics," Tinbergen Institute Discussion Papers 01-056/3, Tinbergen Institute.
- Joelle Noailly, Jeroen van den Bergh, Cees Withagen, 2001. "Evolution of Harvesting Strategies: Replicator and Resource Dynamics," Computing in Economics and Finance 2001 263, Society for Computational Economics.
- Ito, Masaru & Saijo, Tatsuyoshi & Une, Masashi, 1995.
"The Tragedy of the Commons revisited Identifying behavioral principles,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 28(3), pages 311-335, December.
- Ito, M. & Saijo, T. & Une, M., 1994. "The Tragedy of the Commons Revisited: Identifying Behavioral Principles," ISER Discussion Paper 0338, Institute of Social and Economic Research, Osaka University.
- Regev, U. & Gutierrez, A. P. & Schreiber, S. J. & Zilberman, D., 1998. "Biological and economic foundations of renewable resource exploitation," Ecological Economics, Elsevier, vol. 26(3), pages 227-242, September.
- Illge, Lydia & Schwarze, Reimund, 2009. "A matter of opinion--How ecological and neoclassical environmental economists and think about sustainability and economics," Ecological Economics, Elsevier, vol. 68(3), pages 594-604, January.
- Stefan Baumgärtner & Martin F. Quaas, 2009.
"What is sustainability economics?,"
Working Paper Series in Economics
138, University of Lüneburg, Institute of Economics.
- Stephan Schott & Neil Buckley & Stuart Mestelman & R. Muller, 2007. "Output sharing in partnerships as a common pool resource management instrument," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(4), pages 697-711, August.
- Jensen, Carsten Lynge, 2002. "Reduction of the fishing capacity in "common pool" fisheries," Marine Policy, Elsevier, vol. 26(3), pages 155-158, May.
- Lucas Bretschger & Sjak Smulders, 2007.
"Sustainable Resource Use and Economic Dynamics,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 36(1), pages 1-13, January.
- Erwin Bulte & Richard Damania, 2005.
"A note on trade liberalization and common pool resources,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 38(3), pages 883-899, August.
- Bulte, E.H. & Damania, R., 2005. "A note on trade liberalization and common pool resources," Other publications TiSEM ec5e2be5-3071-4001-9b6a-8, Tilburg University, School of Economics and Management.
- Howarth, Richard B., 2007. "Towards an operational sustainability criterion," Ecological Economics, Elsevier, vol. 63(4), pages 656-663, September.
- Jeroen C.J.M. van den Bergh, 2007.
"Evolutionary Thinking in Environmental Economics,"
Tinbergen Institute Discussion Papers
07-018/3, Tinbergen Institute.
- Ruseski, Gorazd, 1998. "International Fish Wars: The Strategic Roles for Fleet Licensing and Effort Subsidies," Journal of Environmental Economics and Management, Elsevier, vol. 36(1), pages 70-88, July.
- Copeland Brian R., 1994. "International Trade and the Environment: Policy Reform in a Polluted Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 44-65, January.
- H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62, pages 124.
- Jean-Philippe Atzenhoffer, 2010. "A Note on Imitation-Based Competition in Common-Pool Resources," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 47(2), pages 299-304, October.
- Mazzucato, Mariana, 1998.
"A computational model of economies of scale and market share instability,"
Structural Change and Economic Dynamics,
Elsevier, vol. 9(1), pages 55-83, March.
- Mariana Mazzucato, 1997. "A Computational Model of Economies of Scale and Market Share Instability," Research in Economics 97-06-054e, Santa Fe Institute.
- Walker, James M & Gardner, Roy, 1992. "Probabilistic Destruction of Common-Pool Resources: Experimental Evidence," Economic Journal, Royal Economic Society, vol. 102(414), pages 1149-61, September.
- Sandal, Leif K. & Steinshamn, Stein I., 2004. "Dynamic Cournot-competitive harvesting of a common pool resource," Journal of Economic Dynamics and Control, Elsevier, vol. 28(9), pages 1781-1799, July.
- Walker, James M. & Gardner, Roy & Ostrom, Elinor, 1990. "Rent dissipation in a limited-access common-pool resource: Experimental evidence," Journal of Environmental Economics and Management, Elsevier, vol. 19(3), pages 203-211, November.
- Heintzelman, Martin & Salant, Stephen W. & Schott, Stephan, 2008.
"Putting Free-Riding to Work: A Partnership Solution to the Common-Property Problem,"
9804, University Library of Munich, Germany.
- Heintzelman, Martin D. & Salant, Stephen W. & Schott, Stephan, 2009. "Putting free-riding to work: A Partnership Solution to the common-property problem," Journal of Environmental Economics and Management, Elsevier, vol. 57(3), pages 309-320, May.
- Lopez, Ramon, 1998. "The Tragedy of the Commons in Cote d'Ivoire Agriculture: Empirical Evidence and Implications for Evaluating Trade Policies," World Bank Economic Review, World Bank Group, vol. 12(1), pages 105-31, January.
- De Groot, Rudolf & Van der Perk, Johan & Chiesura, Anna & van Vliet, Arnold, 2003. "Importance and threat as determining factors for criticality of natural capital," Ecological Economics, Elsevier, vol. 44(2-3), pages 187-204, March.
When requesting a correction, please mention this item's handle: RePEc:aug:augsbe:0315. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dr. Albrecht Bossert)
If references are entirely missing, you can add them using this form.