Behavioural Economics and the Environment

Behavioural Economics and the Environment
Author: Alessandro Bucciol
Publisher: Taylor & Francis
Total Pages: 419
Release: 2023-02-15
Genre: Business & Economics
ISBN: 1000826988

Humans have long neglected to fully consider the impact of their behaviour on the environment. From excessive consumption of fossil fuels and natural resources to pollution, waste disposal, and, in more recent years, climate change, most people and institutions lack a clear understanding of the environmental consequences of their actions. The new field of behavioural environmental economics seeks to address this by applying the framework of behavioural economics to environmental issues, thereby rationalizing unexplained puzzles and providing a more realistic account of individual behaviour. This book provides a complete and rigorous overview of environmental topics that may be addressed and, in many instances, better understood by integrating a behavioural approach. This volume features state-of-the-art research on this topic by influential scholars in behavioural and environmental economics, focussing on the effects of psychological, social and cognitive factors on the decision-making process. It presents research performed using different methods and data collection mechanisms (e.g. laboratory experiments, field experiments, natural experiments, online surveys) on a variety of environmental topics (e.g. sustainability, natural resources). This book is a comprehensive and innovative tool for researchers and students interested in the behavioural economics of the environment and in the design of policy interventions aimed at reducing the human impact on the environment.

Sustainable Climate Action and Water Management

Sustainable Climate Action and Water Management
Author: Ram Kumar Mishra
Publisher: Springer Nature
Total Pages: 342
Release: 2021-04-26
Genre: Science
ISBN: 9811582378

This book discusses various issues relating to water resources, climate change and sustainable development. Water is the main driving force behind three major pillars of sustainable development: environmental, social and economic. As stated in the United Nations Sustainable Development Goals, development of these pillars rests on the availability and management of resources to fulfill the demand for water. By identifying the various challenges in the context of water resources and climate change, the book offers insights into achieving a better and more sustainable future. It provides a unique forum for practitioners and academics to exchange ideas on emerging issues, approaches, and practices in the area of water resources, climate change, and sustainability, while also presenting valuable information for policymakers on the changing contours of water management and climate change mitigation. As such it is a useful resource for decision-makers at the local as well as the global level.

Capacity Beyond Coercion

Capacity Beyond Coercion
Author: Susan L. Ostermann
Publisher: Oxford University Press
Total Pages: 249
Release: 2022
Genre: Child labor
ISBN: 0197661114

State capacity is often equated with coercion. However, history has shown that it is extremely difficult for states with weak capacity to ensure compliance with their laws. In Capacity beyond Coercion, Susan L. Ostermann examines the largely unexplored capacities that allow coercively weak states to promote law-following behavior. Utilizing extensive data collected in adjacent districts in India and Nepal, she demonstrates how coercively weak states can significantly increase compliance by behaving pragmatically and designing implementation strategies around known barriers to compliance. In particular, she examines variation in compliance with conservation, education, and child labor regulations, investigating the mechanisms by which the Indian and Nepali states have, despite limited enforcement capacity, secured compliance with regulations that run counter to customary norms and to the self-interest of target populations. She argues that one such barrier is imperfect legal knowledge and shows how states that have engaged in what she terms "regulatory pragmatism" may circumvent this compliance barrier. They do so by designing implementation strategies for on-the-ground realities. Exploring two such efforts--delegated enforcement and information dissemination through local leaders, Ostermann demonstrates that states that suffer from limited coercive capacity but behave pragmatically can still bring about large-scale compliance. Given that many states have weak enforcement capacity, the findings in Capacity beyond Coercion point a way forward for more effective and responsive governance throughout the developing world.

Norms, gender, and payment method affect extraction behavior in a framed field experiment on community forestry in India

Norms, gender, and payment method affect extraction behavior in a framed field experiment on community forestry in India
Author: Zhang, Wei
Publisher: Intl Food Policy Res Inst
Total Pages: 27
Release: 2021-12-31
Genre: Political Science
ISBN:

This paper presents results from a framed field experiment in which participants make decisions about extraction of a common-pool resource, a community forest. The experiment was designed and piloted as both a research activity and an experiential learning intervention during 2017-2018 with 120 groups of resource users (split by gender) from 60 habitations in two Indian states, Andhra Pradesh and Rajasthan. We examine whether local beliefs and norms about community forest, gender of participants, within-experiment treatments (non-communication, communication, and optional election of institutional arrangements (rules)) and remuneration methods affect harvest behaviour and groups’ tendency to cooperate. Furthermore, we explore whether the experiment and subsequent community debriefing had learning effects. Results reveal a “weak” Nash Equilibrium in which participants harvested substantially less than the Nash prediction even in the absence of communication, a phenomenon stronger for male than female participants in both states. For male groups in both states, both communication and optional rule election are associated with lower group harvest per round, as compared to the reference non-communication game. For female groups in both states, however, communication itself did not significantly slow down resource depletion; but the introduction of optional rule election did reduce harvest amounts. For both men and women in Andhra Pradesh and men in Rajasthan, incentivized payments to individual participants significantly lowered group harvest, relative to community flat payment, suggesting a possible “crowding-in” effect on pro-social norms. Despite the generally positive memory of the activity, reported actual changes are limited. This may be due to the lack of follow-up with the communities between the experiment and the revisit. The fact that many of the communities already have a good understanding of the importance of the relationships between (not) cutting trees and the ecosystem services from forests, with rules and strong internal norms against cutting that go beyond the felling of trees in the game, may have also meant that the game did not have as much to add. Findings have methodological and practical implications for designing behavioral intervention programs to improve common-pool resource governance.

Post-Faustmann Forest Resource Economics

Post-Faustmann Forest Resource Economics
Author: Shashi Kant
Publisher: Springer Science & Business Media
Total Pages: 299
Release: 2013-02-11
Genre: Business & Economics
ISBN: 9400757786

The current paradigm of forest economics is based on Faustmann Formulation (FF) of land expectation value proposed by Martin Faustmann. It was a great achievement by a forester to propose a formulation that captures some fundamental economic features of capital theory which. However, the followers of the FF approach have trapped themselves into the past, and have not shown any indication of economic acumen of the great Faustmann. This has resulted in a common problem in the current paradigm of forest economics, known as Faustmann Forest Resource Economics (FFRE), to prescribe the application of a single (FF) approach to all situations irrespective of the specific features of the situation. The current state of forest economics is similar to that of neoclassical economics, and is full of inefficiencies. In neoclassical economics, inefficiencies are due to its “locked-in” position in rational economic man, while in forest economics inefficiencies are due to its “locked-in” position in the FF. The focus of this volume is on the new paradigm of forest economics termed as Post-Faustmann Forest Resource Economics (PFFRE). The first chapter lays the foundation of the PFFRE, and presents the key distinctions between the FFRE and the PFFRE. The volume includes twelve other chapters that address issues related to forest economics from perspectives different than the FFRE. Chapter 2 to 6 are focused on issues related to human behavior that is different than the rational economic man, Chapter 7 and 8 on public choice theory, Chapter 9 and 10 on systems approaches, and Chapter 11 to 13 on incremental approaches to incorporate new features in the FFRE.

Three Essays on Defending Common-pool Resources

Three Essays on Defending Common-pool Resources
Author: Lawrence Geest
Publisher:
Total Pages:
Release: 2017
Genre:
ISBN:

% !TEX root = ../degeest2017dissertation.tex Environmental protection often relies on cooperation between individuals in uncoordinated groups. In cases such as the management of common-pool resources, individuals must not only monitor and enforce behavior within their group to prevent over-exploitation. They must also contend with external threats on the resource like poaching. This dissertation studies how individuals cooperate to manage shared resources and deter shared threats. The first chapter, "Deterring poaching of a common-pool resource", considers the problem of deterring a threat that cannot be perfectly observed. I present results from common pool resource experiments designed to examine the ability of a group of resource users, called insiders, to simultaneously manage their own exploitation and defend their resource from encroachment by outsiders. The insiders can use communication, peer monitoring and sanctions to coordinate their decisions. In addition, they can sanction any outsiders they observe. I vary the insiders' ability to observe and sanction the outsiders from no observability to partial and full observability. I find a striking non-monotonicity between observability of the outsiders and levels of poaching. Poaching was higher under partial monitoring than zero monitoring, and was lower and more stable under full monitoring. Although full observability allowed the insiders to better coordinate their own harvests, they were unable to fully deter poaching because their sanctions were far too low and they were unwilling to punish low levels of poaching. The second chapter, "Defending public goods and common-pool resources", studies cooperation and deterrence of a shared threat in different strategic environments. In many real-world social dilemmas, groups of individuals must cooperate to create surplus and defend it from theft. Theft can either foster or discourage collective action. On the one hand, a shared threat can align individual incentives. On the other hand, surplus creation may decrease if individuals are unsure how group members will contribute towards defense. Moreover, there is literature that suggests cooperation is sensitive to whether individual actions confer positive externalities (public goods, PG) or negative externalities (common-pool resources, CPR) on group members -- the "cooperation divergence". To examine the relationship between cooperation and defense in different externality settings, I conduct an experiment in which a group of insiders providing a public good or conserving a common-pool resource must coordinate to deter outsiders from stealing the value of their surplus. Our theory predicts that theft will have no different effect on behavior across externality settings. However, I find that it does. Surplus creation is significantly higher in the CPR treatment, while surplus defense is significantly higher in the PG treatment. Across both treatments, I find that the shared threat increases variation within groups, but the effect is more dramatic in the PG treatment. Finally, the third chaper, "Enforcement networks in social dilemmas", studies how enforcement emerges and evolves in the first chapter. Sanctions can increase cooperation in social dilemmas, but they impose a high social cost until a credible threat to non-cooperative behavior is established. Moreover, credible threats depend on enforcement structure. For example, small sanctions implemented by many subjects may have a different impact on behavior than the same volume of sanctions meted out by a single subject. In order to understand how credible threats to deviant behavior emerge, it is therefore necessary to study how enforcement structure emerges and evolves in groups. I study enforcement structure by taking a network approach to data from a social dilemma experiment with peer punishment. The exchange of sanctions between subjects can be framed as a directed, weighted network that evolves, enabling us to use tools from network structure to summarize, predict and simulate behavior. I first visualize and summarize the structure of these networks and show that enforcement structure is non-random and tends to cluster around a few individuals. I then model network formation and network efficiency using an empirical framework that separately considers edge formation (a binary sanctioning event) from edge weight (sanction size) and find that subjects respond more to the act of being sanctioned rather than the volume of sanctions. Finally, I recover the underlying Markov process governing enforcement structure and simulate expected long-run behavior. I conclude with a discussion of how my approach can be used to study generalized exchange networks.

Pastoralism and Development in Africa

Pastoralism and Development in Africa
Author: Andy Catley
Publisher: Routledge
Total Pages: 315
Release: 2013
Genre: Business & Economics
ISBN: 0415540712

A view of 'development at the margins' in the pastoral areas of the Horn of Africa highlights innovation and entrepreneurialism, cooperation and networking and diverse approaches rarely in line with standard development prescriptions. Through twenty detailed empirical chapters, the book highlights diverse pathways of development, going beyond the standard 'aid' and 'disaster' narratives.

Handbook on Experimental Economics and the Environment

Handbook on Experimental Economics and the Environment
Author: John A. List
Publisher: Edward Elgar Publishing
Total Pages: 521
Release: 2013-01-01
Genre: Business & Economics
ISBN: 1781009074

'Until not much more than 20 years ago, economists frequently lamented the fact that they were limited in their empirical analyses to statistical assessments of market behavior, because controlled economic experiments were (thought to be) infeasible, unethical, or both. Much has changed in the intervening years! In this new volume, John List, Michael Price, and their co-authors provide a diverse set of applications of experimental approaches to the environmental economics realm. This is among the most promising of new areas of research in the economics of the environment, and this book provides a superb point of entry for experts and novices alike.' – Robert Stavins, Harvard University, US Laboratory and field experiments have grown significantly in prominence over the past decade. The experimental method provides randomization in key variables therefore permitting a deeper understanding of important economic phenomena. This path-breaking volume provides a valuable collection of experimental work within the area of environmental and resource economics and showcases how laboratory and field experiments can be used for both positive and normative purposes. The Handbook provides a timely reminder to social scientists, policymakers, international bodies, and practitioners that appropriate decision-making relies on immediate and sharp feedback, both of which are key features of proper experimentation. This book includes a collection of research that makes use of the experimental method to explore key issues within environmental and resource economics that will prove invaluable for both students and academics working in these areas.