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The tragedy of the park: an agent-based model on endogenous and exogenous institutions for the management of a forest

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    Many scholars of common pool resources discovered that institutions may solve the tragedy of the commons. I will address a particular situation of management of natural resources: that of a protected area. In this situation interests differ. Local rural inhabitants care about the quality of their environment, but also need to exploit the resources for livelihood reasons. An external entity, being the State or a donor, or an NGO, or all of them together, decides that there is the need of nature Conservation in that area. Because of some evidence of failure of strictly top-down conservationist approach, the external entity decides to apply the concept of participatory conservation: the local inhabitants become stakeholders in the management of the area and they become collectively responsible for conservation, having in turn the right to exploit the resources up to so me degree. I argue that project designers try to find a solution to nature conservation through the creation of a situation of a commons: creating a community that has rights and duties towards a particular natural area that is endowed with some resources. Many scholars rely mostly on institutions which are endogenously created within the users’ community in order to avoid the “tragedy”. However, what happens if institutions are imposed? In participatory conservation initiatives the community has collective rights over the resources, and in this sense the issue of endogenous rules for the commons management is relevant. However, the level to which the community should exploit the resource is usually i mposed by the external project designers. Using agent-based simulations we develop a theoretical model in order to look at the consequences of an imposed institution on the state of a forest and on the profit of the users, taking into account the possibilities of violating the imposed rules, and that of facing enforcement. We compare the consequences of this imposed institution with those deriving from an endogenously created institution. We will also analyze the interaction between the different kinds of institutions and the individual perceptions of each agent. Many results of the model confirm quantitative and qualitative findings of the literature: the presence of institutions and enforcement improve the management of the resource with respect to an open access situation, with different degree of success depending on the kind of institution in place. The two main counterintuitive findings are the following. First, an exogenous institution imposed by external agents may crowd out agents’ intrinsic environmental motivations. Second, when an imposed exogenous institution is in place, the most effective rule is one allowing sufficient degree of access to the resources for the agents, provided that an adequate rule enforcement is implemented.

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    File URL: http://www.unito.it/unitoWAR/ShowBinary/FSRepo/D031/Allegati/WP2013Dip/WP_16_2013.pdf
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    Paper provided by University of Turin in its series Department of Economics and Statistics Cognetti de Martiis. Working Papers with number 201316.

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    Length: 44 pages
    Date of creation: May 2013
    Date of revision:
    Handle: RePEc:uto:dipeco:201316
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    1. Maria Claudia Lopez & James J. Murphy & John M. Spraggon & John K. Stranlund, 2009. "Comparing the Effectiveness of Regulation and Pro-Social Emotions to Enhance Cooperation: Experimental Evidence from Fishing Communities in Colombia," Working Papers 2009-5, University of Massachusetts Amherst, Department of Resource Economics.
    2. Peter Deadman & Edella Schlager & Randy Gimblett, 2000. "Simulating Common Pool Resource Management Experiments with Adaptive Agents Employing Alternate Communication Routines," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 3(2), pages 2.
    3. Ruttan, Lore M., 2008. "Economic Heterogeneity and the Commons: Effects on Collective Action and Collective Goods Provisioning," World Development, Elsevier, vol. 36(5), pages 969-985, May.
    4. Leach, Melissa & Mearns, Robin & Scoones, Ian, 1999. "Environmental Entitlements: Dynamics and Institutions in Community-Based Natural Resource Management," World Development, Elsevier, vol. 27(2), pages 225-247, February.
    5. Cardenas, Juan Camilo & Stranlund, John & Willis, Cleve, 2000. "Local Environmental Control and Institutional Crowding-Out," World Development, Elsevier, vol. 28(10), pages 1719-1733, October.
    6. Matthew Auer, 2006. "Contexts, multiple methods, and values in the study of common-pool resources," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 25(1), pages 215-227.
    7. Hayes, Tanya M., 2006. "Parks, People, and Forest Protection: An Institutional Assessment of the Effectiveness of Protected Areas," World Development, Elsevier, vol. 34(12), pages 2064-2075, December.
    8. Gibson, Clark C. & Williams, John T. & Ostrom, Elinor, 2005. "Local Enforcement and Better Forests," World Development, Elsevier, vol. 33(2), pages 273-284, February.
    9. Ostrom, Elinor, 2006. "The value-added of laboratory experiments for the study of institutions and common-pool resources," Journal of Economic Behavior & Organization, Elsevier, vol. 61(2), pages 149-163, October.
    10. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change
      [Understanding the Process of Economic Change]
      ," Introductory Chapters, Princeton University Press.
    11. Bromley, Daniel W., 2008. "Resource degradation in the African commons: accounting for institutional decay," Environment and Development Economics, Cambridge University Press, vol. 13(05), pages 539-563, October.
    12. Joshua M. Epstein & Robert L. Axtell, 1996. "Growing Artificial Societies: Social Science from the Bottom Up," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262550253, June.
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