Antoci, Angelo and Naimzada, Ahmad and Sodini, Mauro (2009): Strategic interactions and heterogeneity in a overlapping generations model with negative environmental externalities.
Download (248kB) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||Strategic interactions and heterogeneity in a overlapping generations model with negative environmental externalities|
|English Title:||Strategic interactions and heterogeneity in a overlapping generations model with negative environmental externalities|
|Keywords:||Heterogeneous agents; environmental externalities; overlapping generations models.|
|Subjects:||C - Mathematical and Quantitative Methods > C6 - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C61 - Optimization Techniques; Programming Models; Dynamic Analysis
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q20 - General
|Depositing User:||Angelo Antoci|
|Date Deposited:||31. Oct 2009 15:38|
|Last Modified:||13. Feb 2013 22:10|
Bardhan P. and Dayton-Johnson J., 2002, Unequal irrigators: Heterogeneity and commons management in large-scale multi-variate research. In: Ostrom E. , Dietz T., Dolsak N., Stern P.C., Stonich S. andWeber E.U. (Eds), The drama of the commons, National Academy Press, Washington, DC, pp. 87-112.
Bischi G.-I. and Lamantia F., 2007, Harvesting dynamics in protected and unprotected areas, Journal of Economic Behavior & Organization 62 (3), pp. 348-370.
Bischi G.-I., Gallegati M. and Naimzada A., 1999, Symmetry-breaking bifurcations and representative firm in dynamic duopoly games, Annals of Operation Research 89, pp. 253-272.
Bosi S. and Seegmuller T., 2008, Can heterogeneous preferences stabilize endogenous fluctuations?, Journal of Economic Dynamics & Control 32, pp. 624-647.
Cardenas J. C., Stranlund J. and Willis C., 2002, Economic inequality and burden-sharing in the provision of local environmental quality, Ecological Economics 40, pp. 379-395.
Dayton-Johnson J. and Bardhan P., 2002, Inequality and conservation on the local commons: A theoretical exercise, The Economic Journal 112, pp. 577-602.
Hommes C. H. and Rosser J. B., 2001, Consistent expectations equilibria and complex dynamics in renewable resource markets, Macroeconomic Dynamics 5, pp.180-203.
John A. and Pecchenino R., 1994, An overlapping generations model of growth and the environment, The Economic Journal 104, pp. 1393-1410.
Johnson R.N. and Libecap G.D., 1982, Contracting problems and regulation: The case of the fishery, American Economic Review 72 (5), pp. 1005-1023.
Lamantia F., 2006, Variable effort management of renewable natural resources, Chaos, Solitons & Fractals 29 (3), pp. 771-782.
Leeves G.D. and Herbert R. D., 2002, Economic and environmental impacts of pollution control in a system of environment and economic interdependence, Chaos, Solitons & Fractals 13 (4), pp. 693-700.
Naidu S. C., 2008, Heterogeneity and collective management: evidence from common forests in Himachal Pradesh, India, World Development 37 (3), pp. 676-686.
Naimzada A. and Ricchiuti G., 2008, Heterogeneous fundamentalists and imitative processes, Applied Mathematics and Computation 199, pp. 171-180.
Olson M., 1965, The logic of collective action, Harvard University Press, Cambridge, MA.
Ostrom E. and Walker J., 2003 (Eds), Trust and reciprocity: Interdisciplinary lessons from experimental research, Russell Sage Foundation, New York.
Poteete A. and Ostrom E., 2004, Heterogeneity, group size and collective action: The role of institutions in forest management, Development and Change 35, pp. 435-461.
Rosser J. B. Jr, 2001, Complex ecologic-economic dynamics and environmental policy, Ecological Economics 37, pp. 23-37.
Rosser J. B. Jr, 2002, Complex coupled system dynamics and the global warming policy problem, Discrete Dynamics in Naure and Society 7 (2), pp. 93-100.
Ruttan L.M., 1998, Closing the commons: Cooperation for gain or restraint?, Human Ecology 26, pp. 43-66.
Ruttan L.M., 2006, Sociocultural heterogeneity and the commons, Current Anthropology 47, pp. 843-853.
Ruttan L.M. and BorgerhoffMulder M., 1999, Are East African pastoralists truly conservationists?, Current Anthropology 40, pp. 621-652.
Seegmuller T., Verchère A., 2005, Environment in an overlapping generations economy with endogenous labour supply, Document de travail n. 2005-05, Bureau d’économie théorique et appliquée (BETA), France.
Singleton, S., 2001, How distributional conflicts shape comanagement institutions and collaborative environmental policy in the United States. Paper prepared for the workshop Economic Inequality, Collective Action and Environmental Sustainability, Santa Fe Institute, September 2001.
Varughese G. and Ostrom E., 2001, The contested role of heterogeneity in collective action: Some evidence from community forestry in Nepal, World Development 29, pp. 747-765.
Windrum P., Ciarli T. and Birchenhall C., 2009, Consumer heterogeneity and the development of environmental friendly technologies, Technological Forecasting & Social Change 76, pp. 533-551.
Zhang J., 1999, Environmental sustainability, nonlinear dynamics and chaos, Economic Theory 14, pp. 489-500.