Renewable resource management, user heterogeneity, and the scope for cooperation

Cooperation can increase the efficiency of commonly-owned renewable resource use. However, received knowledge is that, absent side payments, cooperative solutions are more difficult to achieve the less homogenous the agents involved. We revisit this claim by analyzing how differences in the opportun...

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Bibliographic Details
Published in:Ecological economics 2008-01, Vol.64 (3), p.597-602
Main Authors: Erdlenbruch, Katrin, Tidball, Mabel, van Soest, Daan
Format: Article
Language:English
Subjects:
Biodiversity and Ecology
Contracts
Dynamic game
Ecology, environment
Environment and Society
Environmental economics
Environmental Sciences
Heterogeneous agents
Life Sciences
Renewable resources
Resource management
Shared resource use
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Summary:Cooperation can increase the efficiency of commonly-owned renewable resource use. However, received knowledge is that, absent side payments, cooperative solutions are more difficult to achieve the less homogenous the agents involved. We revisit this claim by analyzing how differences in the opportunity costs of resource harvesting affect the scope for Pareto-improving contracts, where contracting is with respect to the type of technology used. We find that the scope for cooperation is largest for intermediate levels of heterogeneity.
ISSN:0921-8009
1873-6106
DOI:10.1016/j.ecolecon.2007.04.004