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Fixed Instruments to Cope with Stock Externalities An Experimental Evaluation AgEcon
Giordana, Gaston A.; Willinger, Marc.
We evaluate the effectiveness of non optimal and temporally inconsistent incentive policies for regulating the exploitation of a renewable common-pool resource. The corresponding game is an N-person discrete-time deterministic dynamic game of T periods fixed duration. Three policy instruments with parameters that remain constant for the whole horizon are evaluated: a pigouvian tax (flat tax), an ambient tax (ambient flat tax) and an instrument combining the two previous ones (mixed flat instrument). We test in the lab the predictions of the model solved for 3 distinct behavioural assumptions: (a) sub-game perfection, (b) myopic behaviour, and (c) joint payoff maximization. We find that subjects behave myopically in the unregulated situation, which agrees...
Tipo: Working or Discussion Paper Palavras-chave: Policy Instruments; Renewable Common-pool Resources; Dynamic Externalities; Experimental Economics; Resource /Energy Economics and Policy; D9; D62; H23; H26; H30; Q20; Q28.
Ano: 2007 URL: http://purl.umn.edu/9103
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Do Static Externalities Offset Dynamic Externalities? An Experimental Study of the Exploitation of Substitutable Common-Pool Resources AgEcon
Giordana, Gaston A.; Montginoul, Marielle; Willinger, Marc.
Overexploitation of coastal aquifers may lead to seawater intrusion, which irreversibly degrades groundwater. The seawater intrusion process may imply that its consequences would not be perceptible until after decades of accumulated overexploitation. In such a dynamic setting, static externalities may enhance the users’ awareness about the resource’s common nature, inducing more conservative individual behaviors. Aiming to evaluate this hypothesis, we experimentally test predictions from a dynamic game of substitutable common-pool resource (CPR) exploitation. The players have to decide whether to use a free private good or to extract from one of two costly CPRs. Our findings do not give substantial support to the initial conjecture. Nevertheless, the...
Tipo: Journal Article Palavras-chave: Common-pool resources; Substitutable goods; Dynamic externalities; Survival data; Proportional hazard; Experiment; Institutional and Behavioral Economics; Resource /Energy Economics and Policy.
Ano: 2010 URL: http://purl.umn.edu/90842
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