Market dynamics, dynamic resource management and environmental policy in the context of (strong) sustainability

Klarl, Torben

doi:10.1007/s00191-012-0278-0

Cited by 1 publication

(1 citation statement)

References 34 publications

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“…The first model focusses on situations where the users of the resource diminish the relative value per resource unit in the current time period as their harvest level increases, however, the future value of the resource is undiminished 59 . In contrast, in the dynamic CPR model the current users of the resource reduce the level of the resource and thereby harm future users of the resource 60, 61 . Uncertainty of resource levels tends to promote over-harvesting 62 , while resource scarcity induces greed 63 .…”

Section: Model and Analysismentioning

confidence: 99%

Sustainability is possible despite greed - Exploring the nexus between profitability and sustainability in common pool resource systems

Osten

Kirley

Miller

2017

Sci Rep

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The sustainable use of common pool resources has become a significant global challenge. It is now widely accepted that specific mechanisms such as community-based management strategies, institutional responses such as resource privatization, information availability and emergent social norms can be used to constrain individual ‘harvesting’ to socially optimal levels. However, there is a paucity of research focused specifically on aligning profitability and sustainability goals. In this paper, an integrated mathematical model of a common pool resource game is developed to explore the nexus between the underlying costs and benefits of harvesting decisions and the sustainable level of a shared, dynamic resource. We derive optimal harvesting efforts analytically and then use numerical simulations to show that individuals in a group can learn to make harvesting decisions that lead to the globally optimal levels. Individual agents make their decision based on signals received and a trade-off between economic and ecological sustainability. When the balance is weighted towards profitability, acceptable economic and social outcomes emerge. However, if individual agents are solely driven by profit, the shared resource is depleted in the long run - sustainability is possible despite some greed, but too much will lead to over-exploitation.

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