Dissecting the tragedy: A spatial model of behavior in the commons

Much of the discussion of the tragedy of the commons focuses on aggregate impacts, often in data-poor developing country settings. Few non-experimental empirical studies shed light on contextual circumstances driving the extent of rent dissipation and overexploitation. We utilize a high-resolution data set to estimate a behavioral model of fishermen's spatial choices. A unique policy setting allows us to measure the degree to which individual fishermen's choices appear aimed at mitigating the tragedy of the commons in a small numbers setting. We find evidence of partial mitigation in excess of what we would expect under pure self-interest but short of what would occur under group-maximizing behavior. We also examine how contextual factors in the fishery shape the degree of cooperation within the fishing season and find evidence that competition for the common pool resource distorts fishermen's implicit cost of distance—creating a form of “common property inertia”.     

Aggressive mating as a tragedy of the commons in the water strider Aquarius remigis

The tragedy of the commons usually refers to the overexploitation of resources such as food or water. Here, we show in a laboratory study that competition among males for females can also result in a tragedy of the commons’ situation. Male water striders (Aquarius remigis) vary widely in their aggressiveness toward pursuing females. The most aggressive males prevent females from feeding and cause them to leave the water surface, where they are unavailable to all males. Groups of nonaggressive males are collectively three times more fit than groups of hyperaggressive males, but hyperaggressive males are more successful than nonaggressive males within mixed groups. This is the classic tragedy of the commons’ situation, and it is likely to occur in many species that exhibit sexual conflict. We have also shown that individual differences in male aggression are stable across time and are not influenced by food or light regime, although all individuals become nonaggressive in the presence of fish predators.     

Positive framing does not solve the tragedy of the commons

We investigate whether positive framing increases cooperation in three social dilemmas with slightly different properties: a linear public goods (PG) game, a non-linear PG game, and a common pool resource (CPR) game. Results from our laboratory experiments show that contributions to a linear PG are higher if the externality is framed positively, rather than negatively, corroborating earlier findings by Andreoni (1995). By contrast, we find no such framing effects in the non-linear PG game or the CPR game. In these games, the best response in the material payoffs is to contribute less if others contribute more, counteracting effects of pro-social preferences. Positive framing therefore does not help to solve the tragedy of the commons.     

Innovation and diffusion of clean/green technology: Can patent commons help?

This paper explores the characteristics of 238 patents on 90 inventions contributed by major multinational innovators to the “Eco-Patent Commons”, which provides royalty-free access to third parties to patented innovations on green technologies. We compare the pledged patents to other patents in the same technologies or held by the same multinationals to investigate the motives of the contributing firms as well as the potential for such commons to encourage innovation and diffusion of climate change related technologies. We find pledged patents to protect environmentally friendly technologies and to be of similar value as the average patent in a pledging firm's patent portfolio but of lower value than other patents in their class. Our analysis of the impact of the patent commons on diffusion of patented technologies suggests that making patents accessible royalty-free did not result in any significant increase in diffusion as measured by citing patents. This study, therefore, indirectly provides evidence on the role of patents in the development and diffusion of green technologies.     

The effectiveness of the US endangered species act: An econometric analysis using matching methods

Diametrically opposed views of the effectiveness of the United States Endangered Species Act (ESA) co-exist more than 30 years after the Act's creation. The evidence marshaled to date for and against the ESA suffers from a problem common in analyses of biodiversity protection measures: the absence of a well-chosen control group. We demonstrate how matching methods can be used to select such a control group and thereby estimate how species listed under the ESA would have fared had they not been listed. Our results show that listing a species under the ESA is, on average, detrimental to species recovery if not combined with substantial government funds. In contrast, listed species with such funding tend to improve. Our analysis offers not only new insights into a controversial debate, but also a methodology to guide conservation scientists in evaluating the effectiveness of society's responses to biodiversity loss.     

Integrated ecological models: simulation of socio-cultural constraints on ecological dynamics

We suggest that general systems theory provides a common philosophical basis for dialog between ecological and social scientists interested in studying the reciprocal interactions of humans and their environment. We (1) provide a synopsis of the ‘systems approach' as viewed from the biological and social sciences, respectively; (2) develop a conceptual framework for the explicit linking of ecological and social variables, and (3) draw upon game theoretic results of the Prisoner's Dilemma to represent human decision-making quantitatively in a model that simulates the tragedy of the commons. The model consists of 5 submodels that represent the ‘observers world' and each of 4 ‘participant's worlds.' The observer's-world represents the decision processes, either Optimize or Tit-for-Tat, by which each of 2 users decides to add or remove animals. The 4 perceived worlds represent hypothetical situations in which (1) persons A and B both add an animal; (2) A adds and B does not; (3) B adds and A does not, and (4) neither A nor B add an animal. Simulation results indicate that net worth of the community and of each person individually under Tit-for-Tat is more than double the net worth attained under Optimize. Replacement of the static payoff matrix assumed in game theory with a dynamic quantitative model illustrates how ‘norm-based' approaches to ecosystem management can outperform optimizing approaches based on predicted outcomes. Although ‘soft systems' techniques may better help decision-makers reach norm-based agreements on ecosystem management, quantitative models have more explanatory value, and if developed sufficiently such models could incorporate complex social dimensions that would enhance further their explanatory value.     

Government Management of Village Commons: Comparing Two Forest Policies

When monitoring or enforcement is difficult, governments may find it impossible to manage village forest commons directly. Village-level institutions might be better able to manage these commons, yet villagers' management objectives may not coincide with those of the state. This article considers the effects of two different government policies on the local management of village commons. One policy tool attempts to induce villagers to conserve forest commons by giving them a share of the timber harvest. We investigate the question of whether or not this scheme Joint Forest Management (JFM) is preferred either by the villagers or the government to a simple benchmark policy, under which the government harvests at random. We show that, when villagers are sufficiently patient, for any equilibrium JFM policy there exists a benchmark policy which gives villagers the same level of utility. However, whether the government is similarly indifferent between these two arrangements depends on the villagers' ability to enforce collective agreements, and on the curvature of villagers' utility functions.     

The difference conservation makes to extinction risk of the world's ungulates

Previous studies show that conservation actions have prevented extinctions, recovered populations, and reduced declining trends in global biodiversity. However, all studies to date have substantially underestimated the difference conservation action makes because they failed to account fully for what would have happened in the absence thereof. We undertook a scenario‐based thought experiment to better quantify the effect conservation actions have had on the extinction risk of the world's 235 recognized ungulate species. We did so by comparing species’ observed conservation status in 2008 with their estimated status under counterfactual scenarios in which conservation efforts ceased in 1996. We estimated that without conservation at least 148 species would have deteriorated by one International Union for Conservation of Nature (IUCN) Red List category, including 6 species that now would be listed as extinct or extinct in the wild. The overall decline in the conservation status of ungulates would have been nearly 8 times worse than observed. This trend would have been greater still if not for conservation on private lands. While some species have benefited from highly targeted interventions, such as reintroduction, most benefited collaterally from conservation such as habitat protection. We found that the difference conservation action makes to the conservation status of the world's ungulate species is likely to be higher than previously estimated. Increased, and sustained, investment could help achieve further improvements.     

Can incomplete information lead to under-exploitation in the commons?

This paper analyzes the protection of a common pool resource (CPR) through the management of information. Specifically, we examine an entry deterrence model between an incumbent perfectly informed about the initial stock of a CPR and an uninformed potential entrant. In our model, the appropriation of the CPR by the incumbent reduces both players' future profits from exploiting the resource. In the case of complete information, we show that the incumbent operating in a high-stock common pool overexploits the CPR during the first period since it does not internalize the negative external effect that its first-period exploitation imposes on the entrant's future profits. This inefficiency, however, is absent when the commons totally regenerate across periods. Under incomplete information, we identify an additional form of inefficiency. In particular, the incumbent operating in a low-stock CPR underexploits the resource in order to signal the low available stock to potential entrants, deterring entry.     

Local use of agricultural lands and natural resources as the commons in Gunung Halimun National Park,West Java,Indonesia

The theory of the commons encompasses two interpretations: one based on 'manifest customs', whilst the other relates to 'latent customs'. The former asserts that individuals behave as rational economic units, pursuing their own profit based on economic mechanisms, whilst social restrictions relating to the use of resources within communities act to prevent the total destruction of the natural environment. In contrast, the latter holds that people behave according to the morality or ethics embedded within the society, and that this contributes to sustainable resource management.

A field survey conducted in West Java as part of the present study revealed that a system of communal ownership of lands and resources is widely practiced on land that is strictly private property, including paddy fields, cultivated swiddens, gardens and so forth, facilitated by the distribution of land, lending and borrowing of land and collaborative labour systems. This customary management system is considered a prime example of the commons resource management. Furthermore, communal lands were also seen to play a significant role in the distribution of land and resources amongst community members to supplement daily needs. In addition, these customary land-use systems, as the commons, are considered to contribute towards mitigating the gap between rich and poor.     

Personality and economic choices

There is substantial variation in individual preferences for public goods, yet much of that variation remains poorly understood. However, simple measures of personality can help to explain economic values and choices in a systematic way. In this paper, we examine the effects of personality on individual economic choices over public environmental goods. Based on three datasets from three separate stated preference studies, we use a hybrid choice econometric framework to examine the effects of personality on preferences for the status quo, changes in environmental quality, and costs of investing in environmental improvements. We find effects that are consistent across all datasets. Personality, a stable feature of an individual's character that is simple to measure, enriches explanations of why the demand for environmental goods varies across people, provides an indication of how different people are likely to react to the introduction of environmental policies, and explains substantial differences in Willingness to Pay.     

Using revealed preferences to estimate the Value of Travel Time to recreation sites

The opportunity Value of Travel Time (VTT) is one of the most important elements of the total cost of recreation day-trips and arguably the most difficult to estimate. Most studies build upon the theoretical framework proposed by Becker (1965) by using a combination of revealed and stated preference data to estimate a value of time which is uniform in all activities and under all circumstances. This restriction is relaxed by DeSerpa's (1971) model which allows the value of saving time to be activity-specific. We present the first analysis which uses actual driving choices between open access and toll roads to estimate a VTT specific for recreation trips, thereby providing a value which conforms to both Becker's and DeSerpa's theoretical models. Using these findings we conduct a Monte Carlo simulation to identify generalizable results for subsequent valuation studies. Our results indicate that 3/4 of the wage rate provides a reasonable approximation of the average VTT for recreation trips, while the commonly implemented assumption of 1/3 of the wage rate generates downward biased results.     

Can irrational behaviour maximise fitness?

Behavioural models for both humans and other animals often assume economic rationality on the part of decision makers. Economic rationality supposes that outcomes can be assigned objective values within a stable valuation framework and that choices are made to maximise a decision maker’s expected payoff. Yet, both human and animal behaviour is often not economically rational. Here, we compare economically rational making strategies with a strategy (trade-off contrasts) that has been proposed to account for decision-making behaviour in humans that departs of axiomatic rationality. We model the fitness of these strategies in a simple environment where choices are made on repeated occasions, there is stochastic fluctuation in the choices available at any given time, and uncertainty about what choices will be available in the future. Our results show that, for at least some of the model parameter space, non-rational decision strategies achieve higher fitness than economically rational strategies. The differences were comparable in magnitude to selection differentials observed in nature.     

Market equilibrium and welfare effects of a fuel tax in China: The impact of consumers' response through driving patterns

We investigate the market equilibrium and welfare effects of a fuel tax in China relative to an alternative policy instrument that rations the number of new automobile sales through auctioned quotas. Unlike those of previous studies, our modeling approach incorporates both household car purchase and utilization decisions, the latter of which have been ignored in previous studies on China's fuel tax. Ignoring this margin of choice will underestimate the fuel tax's ability to mitigate externalities. Using detailed household-level panel data and a fixed effects econometric specification, we estimate the fuel price elasticity of vehicle miles traveled is −0.59 on average. The results of the counterfactual analysis suggest that a 51% increase in tax-inclusive gasoline prices will reduce car sales by 24.9% but increase social welfare to a degree that depends on vehicles' lifetime. We find that compared to auctioned quotas, the fuel tax results in greater car sales but higher social welfare.     

Making central-local relations work: Comparing America and China environmental governance systems

The challenge of making central requirements work at local levels is a common problem for environmental governance throughout the world. Countries can learn from one another's approaches, but must understand the local context in which they are set. This paper compares the features of the China and US environmental governance systems that need be understood by those working between the systems. Key features include: (1) common values which shape the environmental governance choices in both countries, but which may have different practical meanings in each country; (2) America's common law-based environmental governance system, and China's civil law system, which involves plan(s) as well as law; (3) America's Federal central-local system, and China's unitary central local system. This paper concludes by suggesting areas in which further comparative understanding may be of value, including: (1) better understanding of the role of plan and law in China's governance system; (2) comparing the American Federal-state agreement system for implementation of environmental law with the China central-local system of target responsibility agreements for plan implementation; (3) improving understanding of nongovernmental resources needed to assure compliance with environmental laws and plans; (4) identifying institutions that can coordinate central-local and cross-border environmental governance.     

Complementarity,impatience, and the resilience of natural-resource-dependent economies

We study how society's preferences affect the resilience of economies that depend on more than one type of natural resource. In particular, we analyze whether the degree of complementarity of natural resources in consumer preferences may give rise to multiple steady states and path dependence even when resources are managed optimally. We find that, for a given social discount rate, society tends to be less willing to buffer exogenous shocks if resource good are complements in consumption than if they are substitutes. The stronger the complementarity between the various types of natural resources, the less resilient the economy is, and even more so the higher is the social discount rate.     

Incentive compatibility tests of choice experiment value elicitation questions

This paper uses laboratory experiments with induced values to address fundamental issues related to the incentive compatibility of choice experiment value elicitation questions. In particular, we compare two- versus three-option choice sets and the effect of using alternative provision rules, including one where the outcome is influenced by both participant and “regulator” votes. We find the overall proportion of choices that are inconsistent with induced preferences is rather low. However, there are more deviations from induced preferences for two-option choice sets, and for alternatives to a simple plurality vote implementation rule. A multinomial probit analysis of choices in tandem with a mixed logit welfare analysis suggests there is a statistically significant but modest degree of bias towards selecting the status quo option.     

Evaluating whether nature's intrinsic value is an axiom of or anathema to conservation

That at least some aspects of nature possess intrinsic value is considered by some an axiom of conservation. Others consider nature's intrinsic value superfluous or anathema. This range of views among mainstream conservation professionals potentially threatens the foundation of conservation. One challenge in resolving this disparity is that disparaging portrayals of nature's intrinsic value appear rooted in misconceptions and unfounded presumptions about what it means to acknowledge nature's intrinsic value. That acknowledgment has been characterized as vacuous, misanthropic, of little practical consequence to conservation, adequately accommodated by economic valuation, and not widely accepted in society. We reviewed the philosophical basis for nature's intrinsic value and the implications for acknowledging that value. Our analysis is rooted to the notion that when something possesses intrinsic value it deserves to be treated with respect for what it is, with concern for its welfare or in a just manner. From this basis, one can only conclude that nature's intrinsic value is not a vacuous concept or adequately accommodated by economic valuation. Acknowledging nature's intrinsic value is not misanthropic because concern for nature's welfare (aside from its influence on human welfare) does not in any way preclude also being concerned for human welfare. The practical import of acknowledging nature's intrinsic value rises from recognizing all the objects of conservation concern (e.g., many endangered species) that offer little benefit to human welfare. Sociological and cultural evidence indicates the belief that at least some elements of nature possess intrinsic value is widespread in society. Our reasoning suggests the appropriateness of rejecting the assertion that nature's intrinsic value is anathema to conservation and accepting its role as an axiom. Evaluar si el Valor Intrínseco de la Naturaleza es un Axioma o un Anatema para la Conservación     

Tell the truth or not? The montero mechanism for emissions control at work

We experimentally test the truth-telling mechanism proposed by Montero (2008) for eliciting firms' abatement costs. We compare this mechanism with two well-known alternative allocation mechanisms, free and costly allocation of permits at the Pigouvian price. Controlling for the number of firms and the firms' maximal emissions, we find that, in line with the theoretical predictions, firms over-report their maximal emissions under free allocation of permits and under-report these under costly allocation of permits. Under Montero's mechanism, by contrast, firms almost always report their maximal emissions truthfully. However, in terms of efficiency, the difference between Montero's mechanism and costly allocation disappears with industries including more than one firm.     

Use of landscape and land use parameters for classification and characterization of watersheds in the mid-Atlantic across five physiographic provinces

The Atlantic Slope Consortium (ASC) is a project designed to develop and test a set of indicators in coastal systems that are ecologically appropriate, economically reasonable, and relevant to society. The suite of indicators will produce integrated assessments of the condition, health and sustainability of aquatic ecosystems based on ecological and socioeconomic information compiled at the scale of estuarine segments and small watersheds. The research mandate of the ASC project is the following:

Using a universe of watersheds, covering a range of social choices, we ask two questions:

• ? How “good” can the environment be, given those social choices?
• ? What is the intellectual model of condition within those choices, i.e., what are the causes of condition and what are the steps for improvement?

As a basis for compiling ecological indicators, a watershed classification system was required for the experimental design. The goal was to develop approximately five categories of watersheds for each physiographic province, utilizing landscape and land use parameters that would be predictive of aquatic resource condition. All 14-digit Hydrologic Unit Code (HUC) watersheds in the Mid-Atlantic region would then be classified according to the regime. Five parameters were utilized for the classification: three land cover categories, consisting of forested, agricultural, and urban, median slope or median elevation, and total variance of land covers in 1-km-radius circles positioned on all stream convergence points in a specified 14-digit?HUC watershed. Cluster analysis utilizing these five parameters resulted in approximately five well-defined watershed classes per physiographic province. The distribution of all watersheds in the Mid-Atlantic region across these categories provides a unique report on the probable condition of watersheds in the region.