Hostname: page-component-745bb68f8f-cphqk Total loading time: 0 Render date: 2025-01-16T03:18:00.506Z Has data issue: false hasContentIssue false
  • English
  • Français

Can abatement efforts in a common pool resource promote overexploitation of the resource?

Published online by Cambridge University Press:  15 January 2025

Aditi A. Surve  and
Ana Espinola-Arredondo Open the ORCID record for Ana Espinola-Arredondo [Opens in a new window]
Aditi A. Surve
Affiliation:
School of Economic Sciences, Washington State University, Pullman, WA, USA
Ana Espinola-Arredondo*
Affiliation:
School of Economic Sciences, Washington State University, Pullman, WA, USA
*
Corresponding author: Ana Espinola Arredondo; Email: anaespinola@wsu.edu
Get access Rights & Permissions [Opens in a new window]

Abstract

We examine a common pool resource (CPR) where appropriations deteriorate the quality of the resource and, thus, its impact on the exploitation of the CPR. We focus on two settings: (i) firms use the CPR without abatement efforts, and (ii) abatement is allowed. We provide comparisons between these two settings and identify socially optimal appropriation levels. We find that (i) higher quality of the CPR could induce firms to overuse the resource, and (ii) first-period appropriations with abatement decrease in the regeneration rate. However, abatement induces an overuse of the resource when the quality of the CPR improves.

Keywords

abatementcommon pool resourcequalitytragedy of the commons

JEL classification

Q25: Water Q53: Air Pollution • Water Pollution • Noise • Hazardous Waste • Solid Waste • Recycling L13: Oligopoly and Other Imperfect Markets C72: Noncooperative Games
Type
Research Article
Information
Environment and Development Economics , First View , pp. 1 - 24
Copyright
Copyright © The Author(s), 2025. Published by Cambridge University Press

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Apesteguia, J (2006) Does information matter in the Commons? Experimental evidence. Journal of Economic Behavior & Organization 60, 55–69.CrossRefGoogle Scholar
Arumugam, K and Elangovan, K (2009) Hydrochemical characteristics and groundwater quality assessment in Tirupur Region, Coimbatore District, Tamil Nadu, India. Environmental Geology 58, 1509–1520.CrossRefGoogle Scholar
Awomeso, J, Taiwo, A, Gbadebo, A and Adenowo, J (2010) Studies on the pollution of water body by textile industry effluents in Lagos, Nigeria. Journal of Applied Sciences in Environmental Sanitation 5, 353–359.Google Scholar
Baland, J and Platteau, J (1996) Halting Degradation of Natural Resources: Is There a Role for Rural Communities?, Rome, Italy: Food and Agriculture Organization of the United Nations.Google Scholar
Brunckhorst, DJ and Coop, P (2003) Tilbuster Commons: synergies of theory and action in new agricultural commons on private land. Ecological Management & Restoration 4, 13–22.CrossRefGoogle Scholar
Colombo, L and Labrecciosa, P (2022) Product quality differentiation in a renewable resource oligopoly. Journal of Environmental Economics and Management 111, 102583.CrossRefGoogle Scholar
Erdlenbruch, K, Tidball, M and Zaccour, G (2014) Quantity–quality management of a ground water resource by a water agency. Environmental Science & Policy 44, 201–214.CrossRefGoogle Scholar
Espinola-Arredondo, A and Muñoz-García, F (2011) Can incomplete information lead to under-exploitation in the commons?. Journal of Environmental Economics and Management 62, 402–413.CrossRefGoogle Scholar
Espinola-Arredondo, A and Muñoz-García, F (2021) Common Pool Resources: Strategic Behavior, Inefficiencies, and Incomplete Information. Cambridge, UK: Cambridge University Press.CrossRefGoogle Scholar
Espinola-Arredondo, A, Muñoz-García, F and Duah, I (2019) Anticipatory effects of taxation in the commons: when do taxes work, and when do they fail?. Ecological Economics 166, 106433.CrossRefGoogle Scholar
European Environment, Agency (2014) Environmental Indicator Report 2014: Environmental Impacts of Production–Consumption Systems in Europe. Luxembourg: Publications Office of the European Union.Google Scholar
European Parliament (2020) The impact of textile production and waste on the environment (Infographics). Directorate-General for Communication. Available at .Google Scholar
Huq, M (2003) A compilation of environment laws administrated by the Department of Environment. Department of Environment and Bangladesh Environmental Management Project (BEMP), Dhaka.Google Scholar
Ikefuji, M, Laeven, RJA, Magnus, JR and Muris, C (2010) Scrap value functions in dynamic decision problems. Technical Report 2010-77, CentER Discussion Paper Series. Available at SSRN: https://ssrn.com/abstract=1649990.CrossRefGoogle Scholar
Iqbal, MA, Khan, ZS, Ahmed, N and Ali, A (2020) Effects of process parameters on the microstructural characteristics of DC magnetron sputtered molybdenum films on graphite substrate. Arabian Journal for Science and Engineering 46, 761–768.CrossRefGoogle Scholar
Kant, R (2012) Textile dyeing industry: an environmental hazard. Natural Science 4, 22–26.CrossRefGoogle Scholar
Kasthuri, R, Kalaivani, DBanumathi K and Shanmugapriya, R (2007) Evaluation of water quality in A. Mettur area of Perambalur District. Indian Journal of Environmental Protection 27, 1011.Google Scholar
Krawczyk, JB (2005) Coupled constraint Nash equilibria in environmental games. Resource and Energy Economics 27, 157–181.CrossRefGoogle Scholar
Libois, F (2022) Success and failure of communities managing natural resources: static and dynamic inefficiencies. Journal of Environmental Economics and Management 114, 102671.CrossRefGoogle Scholar
Martín-Herrán, G and Rubio, SJ (2023) Efficiency-inducing policy for polluting oligopolists. Dynamic Games and Applications 1–28.Google Scholar
McKean, MA (1982) The Japanese experience with scarcity: management of traditional common lands. Environmental Review 6, 63–88.CrossRefGoogle Scholar
Ostrom, E (1990) Governing the Commons: The Evolution of Institutions for Collective Action. Political Economy of Institutions and Decisions Series. Cambridge, UK: Cambridge University Press.CrossRefGoogle Scholar
Ranganathan, K, Jeyapaul, S and Sharma, D (2007) Assessment of water pollution in different bleaching based paper manufacturing and textile dyeing industries in India. Environmental Monitoring and Assessment 134, 363–372.CrossRefGoogle ScholarPubMed
Roseta-Palma, C (2003) Joint quantity/quality management of groundwater. Environmental and Resource Economics 26, 89–106.CrossRefGoogle Scholar
Sharif, M and Hannan, M (1999) Guide to the Environmental Conservation Act 1995 and Rules 1997. Bangladesh Centre for Advanced Studies (BCAS), Dhaka, Bangladesh.Google Scholar
Suleiman, R and Rapoport, A (1988) Environmental and social uncertainty in single-trial resource dilemmas. Acta Psychologica 68, 99–112.CrossRefGoogle Scholar
Suleiman, R, Rapoport, A and Budescu, DV (1996) Fixed position and property rights in sequential resource dilemmas under uncertainty. Acta Psychologica 93, 229–245.CrossRefGoogle Scholar
Sultana, MS, Islam, MS, Saha, R and Al-Mansur, M (1970) Impact of the effluents of textile dyeing industries on the surface water quality inside D.N.D Embankment, Narayanganj. Bangladesh Journal of Scientific and Industrial Research 44, 65–80.CrossRefGoogle Scholar
Wallander, S, Marshall, E and Aillery, M (2017) Farmers employ strategies to reduce risk of drought damages. USDA Economic Research Service. Available at https://www.ers.usda.gov/amber-waves/2017/june/farmers-employ-strategies-to-reduce-risk-of-drought-damages.Google Scholar
Webb, B (2022) Climate change is coming for fashion's supply chains. Vogue Business. Available at https://www.voguebusiness.com/sustainability/climate-change-is-coming-for-fashions-supply-chains.Google Scholar
Zeitouni, N and Dinar, A (1997) Mitigating negative water quality and quality externalities by joint management of adjacent aquifers. Environmental and Resource Economics 9, 1–20.CrossRefGoogle Scholar
Supplementary material: File

Surve and Espinola-Arredondo supplementary material

Surve and Espinola-Arredondo supplementary material
Download Surve and Espinola-Arredondo supplementary material(File)
File 465.7 KB