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Strategic interactions and heterogeneity in a overlapping generations model with negative environmental externalities

  • Antoci, Angelo
  • Naimzada, Ahmad
  • Sodini, Mauro

We analyze an overlapping generations model where individuals’ welfare depends on the stock of a free access environmental good E and on the consumption C of a private good. We assume that the production process of the private good depletes the natural resource but that specific investments alleviate these damages. In such context, we show that strategic behaviour and heterogeneity in preferences may be a source of complex dynamics.

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File URL: https://mpra.ub.uni-muenchen.de/18221/1/MPRA_paper_18221.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 18221.

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Date of creation: 2009
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Handle: RePEc:pra:mprapa:18221
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  1. Hommes, C.H. & Rosser, B.J., Jr., 2000. "Consistent Expectations Equilibria and Complex Dynamics in Renewable Resource Markets," CeNDEF Working Papers 00-05, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance.
  2. Johnson, Ronald N & Libecap, Gary D, 1982. "Contracting Problems and Regulation: The Case of the Fishery," American Economic Review, American Economic Association, vol. 72(5), pages 1005-22, December.
  3. Thomas SEEGMULLER & Alban VERCHÈRE, 2005. "Environment in an Overlapping Generations Economy with Endogenous Labor Supply : a Dynamic Analysis," Working Papers of BETA 2005-05, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
  4. Stefano Bosi & Thomas Seegmuller, 2006. "Can heterogeneous preferences stabilize endogenous fluctuations ?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00130200, HAL.
  5. Varughese, George & Ostrom, Elinor, 2001. "The Contested Role of Heterogeneity in Collective Action: Some Evidence from Community Forestry in Nepal," World Development, Elsevier, vol. 29(5), pages 747-765, May.
  6. Dayton-Johnson, Jeff & Bardhan, Pranab, 1996. "Inequality and Conservation on the Local Commons: A Theoretical Exercise," Center for International and Development Economics Research, Working Paper Series qt7f9913w9, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
  7. Barkley Rosser, J. Jr., 2001. "Complex ecologic-economic dynamics and environmental policy," Ecological Economics, Elsevier, vol. 37(1), pages 23-37, April.
  8. Bischi, Gian Italo & Lamantia, Fabio, 2007. "Harvesting dynamics in protected and unprotected areas," Journal of Economic Behavior & Organization, Elsevier, vol. 62(3), pages 348-370, March.
  9. Cardenas, Juan Camilo & Stranlund, John & Willis, Cleve, 2002. "Economic inequality and burden-sharing in the provision of local environmental quality," Ecological Economics, Elsevier, vol. 40(3), pages 379-395, March.
  10. Naidu, Sirisha C., 2009. "Heterogeneity and Collective Management: Evidence from Common Forests in Himachal Pradesh, India," World Development, Elsevier, vol. 37(3), pages 676-686, March.
  11. John, A & Pecchenino, R, 1994. "An Overlapping Generations Model of Growth and the Environment," Economic Journal, Royal Economic Society, vol. 104(427), pages 1393-1410, November.
  12. Ahmad Naimzada & Giorgio Ricchiuti, 2006. "Heterogeneous Fundamentalists and Imitative Processes," Working Papers 104, University of Milano-Bicocca, Department of Economics, revised Nov 2006.
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