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Journal of Evolutionary Economics

, Volume 23, Issue 4, pp 861–888 | Cite as

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

  • Torben KlarlEmail author
Regular Article

Abstract

In this paper, we investigate the relationship between market dynamics, dynamic resource management and environmental policy. In contrast to static market entry games, this paper draws attention to the effects of market dynamics on resource dynamics et vice versa, because (1) we show that feedback processes are necessary for obtaining a better understanding of what drives the dynamics between the evolution of common-pool resources and the number of harvesters and more importantly, (2) this analysis provides an environment discussing sustainability in an appropriate inasmuch dynamic way. The paper makes the following points: based on a co-evolutionary model, which incorporates resource and market dynamics simultaneously, it is shown that an increasing number of harvesters does not necessarily imply a lower stock of the common-pool resource in the long run. Further it is shown that a tax-scheme establish an output-sharing solution for coping with the overuse of common-pool resources. This results is in contrast to the prevailing literature, which mainly discusses tax-schemes and out-sharing as substitutes rather than as complements for solving the commons-problem. This conclusion holds even if we additionally assume harvesting-cost-reducing technological progress. On the other side if policy interventions ceased, strong resource sustainability in the sense of resource conservation is not possible, given technological progress is a relevant issue.

Keywords

Sustainability Resource management Environmental policy Common resources Population dynamics 

JEL Classification

B52 Q22 Q28 Q57 

Notes

Acknowledgement

The author would like to thank one anonymous referee for comments and suggestions that helped to improve the paper considerably. All remaining errors are, of course, my own.

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Copyright information

© Springer-Verlag 2012

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of AugsburgAugsburgGermany

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