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Economics and Ecology: A Comparison of Experimental Methodologies and Philosophies

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  • Jason F. Shogren
  • Clifford Nowell

Abstract

Views of the proper role of experiments in (environmental) economics and ecology have developed quite differently. Economics has devoted the majority of effort to abstract theory, with experimentation coming in a distant second. Kagel quotes a colleague who illustrates a common perception among economists: "I am a 'true believer' in microeconomic theory, and as a result I am perfectly willing to accept mathematical proofs without experimental evidence. In contrast, ecology has focused on observation-based experiments as the primary mechanism of research, almost separate from the development of abstract theoretical ecology. Kareiva notes that "sad truth is that ecological theory exists largely in a world of its own, unnoticed by mainstream ecology." We explore why this divergence has developed and persisted. The main reason is economists and ecologists differ in their assumptions regarding the objective function of a model. Economists generally assume the objective function is well-defined; ecologists view the function as unknown. We highlight recent research in environmental economics to illustrate the economist's approach to experimentation.

Suggested Citation

  • Jason F. Shogren & Clifford Nowell, 1990. "Economics and Ecology: A Comparison of Experimental Methodologies and Philosophies," Center for Agricultural and Rural Development (CARD) Publications 90-wp62, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:90-wp62
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    Cited by:

    1. Bohm, Peter, 2003. "Experimental evaluations of policy instruments," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 10, pages 437-460, Elsevier.
    2. Fisher, Ann & Wheeler, William J. & Zwick, Rami, 1993. "Experimental Methods in Agricultural and Resource Economics: How Useful are They?," Agricultural and Resource Economics Review, Cambridge University Press, vol. 22(2), pages 103-116, October.
    3. Shogren, Jason F., 2006. "Experimental Methods and Valuation," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 19, pages 969-1027, Elsevier.
    4. Faucheux, Sylvie & Froger, Geraldine & Noel, Jean-Francois, 1995. "What forms of rationality for sustainable development?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 24(1), pages 169-209.
    5. Shogren, Jason F., 2002. "A behavioral mindset on environment policy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 31(4), pages 355-369.
    6. Jeroen C. J. M. van den Bergh & Kenneth J. Button, 1997. "Meta-analysis of Environmental Issues in Regional, Urban and Transport Economics," Urban Studies, Urban Studies Journal Limited, vol. 34(5-6), pages 927-944, May.
    7. Jason F. Shogren, 2002. "Micromotives in Global Environmental Policy," Interfaces, INFORMS, vol. 32(5), pages 47-61, October.
    8. Shogren, Jason F., 1993. "Experimental Markets And Environmental Policy," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 22(2), pages 1-13, October.
    9. Jeroen C.J.M. van den Bergh, 2000. "Ecological Economics: Themes, Approaches, and Differences with Environmental Economics," Tinbergen Institute Discussion Papers 00-080/3, Tinbergen Institute.

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