Koulovatianos, Christos (2010): A Paradox of Environmental Awareness Campaigns.
Download (200kB) | Preview
We build a workable game of common-property resource extraction under rational Bayesian learning about the renewal prospects of a resource. We uncover the impact of exogenously shifting the prior beliefs of each player on the response functions of others. What we find about the role of environmental conservation campaigns is paradoxical. To the extent that such campaigns instill overly high pessimism about the potential of natural resources to reproduce, they create anti-conservation incentives: anyone having exploitation rights becomes inclined to consume more of the resource earlier, before others overexploit, and before the resource's stock is reduced to lower levels.
|Item Type:||MPRA Paper|
|Original Title:||A Paradox of Environmental Awareness Campaigns|
|Keywords:||renewable resources; resource exploitation; non-cooperative dynamic games; Bayesian learning; stochastic games; commons; rational learning; uncertainty; beliefs|
|Subjects:||Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q50 - General
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D84 - Expectations; Speculations
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search; Learning; Information and Knowledge; Communication; Belief
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q20 - General
C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C72 - Noncooperative Games
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O12 - Microeconomic Analyses of Economic Development
L - Industrial Organization > L7 - Industry Studies: Primary Products and Construction > L70 - General
C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C73 - Stochastic and Dynamic Games; Evolutionary Games; Repeated Games
|Depositing User:||Christos Koulovatianos|
|Date Deposited:||08. Dec 2010 10:30|
|Last Modified:||15. Feb 2013 07:45|
Blume, L. and D. Easley (1993): Rational Expectations and Rational Learning, Economics Working Paper Archive (EconWPA), Series: Game Theory and Information, No. 9307003, http://188.8.131.52/eps/game/papers/9307/9307003.pdf
Cogley, T. and Sargent, T. (2008): Anticipated Utility and Rational Expectations as Approximations of Bayesian Decision Making, International Economic Review, 49, 185-221.
Guidolin, M. and Timmermann, A. (2007): Properties of equilibrium asset prices under alternative learning schemes, Journal of Economic Dynamics and Control, 31, 161-217.
Harville, D. A. (1997): Matrix Algebra From a Statistician's Perspective. Springer-Verlag.
Jackson, M. O. and B. W. Rogers (2007): Relating Network Structure to Diffusion Properties through Stochastic Dominance, The B.E. Journal of Theoretical Economics, Vol. 7, Iss. 1 (Advances), Article 6. Available at: http://www.bepress.com/bejte/vol7/iss1/art6
Kalai, E. and E. Lehrer (1993): Rational Learning Leads to Nash Equilibrium, Econometrica, 61, 1019-1045.
Koulovatianos, C., Mirman, L. J. and Santugini, M. (2009): Optimal growth and uncertainty: Learning, Journal of Economic Theory, 144, 280-295.
Levhari, D., and L. J. Mirman (1980): The Great Fish War: an Example using a Dynamic Cournot-Nash Solution, The Bell Journal of Economics, 11, 322-334.
Lomborg, B. (2001): The Skeptical Environmentalist: Measuring the Real State of the World, Cambridge, UK: Cambridge University Press.
Rörsch, A., T. Frello, R. Soper and A. De Lange (2005): On the opposition against the book The Skeptical Environmentalist by B. Lomborg, Journal of Information Ethics 14, 16�28.
Sinn, H.-W. (2008): Public Policies against Global Warming: A Supply Side Approach, International Tax and Public Finance 15, 360-394.