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Comparing regulations to protect the commons: an experimental investigation

Author

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  • Ambec, S.
  • Garapin, A.
  • Muller, L.
  • Reynaud, A.
  • Sebi, C.

Abstract

In a laboratory experiment we test the three regulations imposed on a common-pool resource game with heterougeneous users: an access fee and subsidy scheme, transferable quotas and non transferable quotas? We calibrate the game so that all regulations improve users' profits compared to free-access extraction. We compare the regulations according to five criteria: resource preservation, individual profits, profit difference, Pareto-improvement from free-access and sorting of the most efficient users. One of the main findings is that, even though it performs better in sorting out the most efficient subjects, the fee and subsidy scheme is not the more profitable than tradable quotas.

Suggested Citation

  • Ambec, S. & Garapin, A. & Muller, L. & Reynaud, A. & Sebi, C., 2013. "Comparing regulations to protect the commons: an experimental investigation," Working Papers 2013-07, Grenoble Applied Economics Laboratory (GAEL).
  • Handle: RePEc:gbl:wpaper:2013-07
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    References listed on IDEAS

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    1. repec:eee:pubeco:v:155:y:2017:i:c:p:138-146 is not listed on IDEAS

    More about this item

    Keywords

    COMMON-POOL RESOURCE; REGULATION; QUOTA; PERMIT; TAX;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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