Arbeitspapier

Renewable resource use with imperfect self-control

We investigate renewable resources when the harvesting agents face self-control problems. Individuals are conceptualized as dual selves. The rational long-run self plans for the infinite future while the affective short-run self desires to maximize instantaneous profits. Depending on the degree of self-control, actual behavior is partly driven by short-run desires. This modeling represents impatience and present bias without causing time inconsistent decision making. In a model of a single harvesting agent (e.g. a fishery), we discuss how self-control problems affect harvesting behavior, resource conservation, and sustainability and discuss policies to curb overuse and potential collapse of the resource due to present-biased harvesting behavior. We then extend the model to several harvesting agents and show how limited self-control exacerbates the common pool problem. Finally, we investigate heterogenous agents and show that there are spillover effects of limited self-control in the sense that perfectly rational agents also behave less conservatively when they interact with agents afflicted by imperfect self-control.

Sprache
Englisch

Erschienen in
Series: cege Discussion Papers ; No. 408

Klassifikation
Wirtschaft
Welfare Economics: General
Micro-Based Behavioral Economics: General‡
Renewable Resources and Conservation: General
Environmental Economics: General
Environmental Economics: Government Policy
Economic Growth and Aggregate Productivity: General
Thema
self-control
temptation
renewable resource use
sustainability
common pool resource management

Ereignis
Geistige Schöpfung
(wer)
Strulik, Holger
Werner, Katharina
Ereignis
Veröffentlichung
(wer)
University of Göttingen, Center for European, Governance and Economic Development Research (cege)
(wo)
Göttingen
(wann)
2020

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Strulik, Holger
  • Werner, Katharina
  • University of Göttingen, Center for European, Governance and Economic Development Research (cege)

Entstanden

  • 2020

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