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Location choice for renewable resource extraction with multiple non-cooperative extractors: a spatial Nash equilibrium model and numerical implementation

Author

Listed:
  • Erik O. Sterner

    (Chalmers University of Technology)

  • Elizabeth J. Z. Robinson

    (University of Reading)

  • H. J. Albers

    (University of Wyoming)

Abstract

Especially in lower-income countries, the distribution of renewable resources in open access settings often reflects the non-cooperative spatial extraction decisions of many individuals who spread out across a landscape. These individuals recognize tradeoffs between distance to the resource, density, and competition amongst extractors. In this paper we present a game theoretic model that explicitly accommodates such explicitly spatial non-cooperative behavior with respect to the extraction of a stationary renewable natural resource, such as a non-timber forest products or bivalvia (for example, oysters, clams), that is located in a two dimensional landscape. Villagers that have identical labor allocations and preferences are shown to undertake very different extraction pathways in equilibrium. For example, some may extract in more congested patches closer to the village while others may extract in less crowded but more distant patches. For many parameterizations, we find multiple spatial Nash equilibria that differ with respect to the number of villagers at each resource location, whether individual villagers extract from one or multiple locations, and the extent and spatial pattern of resource degradation. In addition to finding equilibria with widely different actions taken by identical extractors, the analysis here demonstrates the impact of simplifying assumptions for spatial decisions on predictions of policy impact, resource distributions, and conflict.

Suggested Citation

  • Erik O. Sterner & Elizabeth J. Z. Robinson & H. J. Albers, 2018. "Location choice for renewable resource extraction with multiple non-cooperative extractors: a spatial Nash equilibrium model and numerical implementation," Letters in Spatial and Resource Sciences, Springer, vol. 11(3), pages 315-331, October.
    • Handle: RePEc:spr:lsprsc:v:11:y:2018:i:3:d:10.1007_s12076-018-0215-4
    DOI: 10.1007/s12076-018-0215-4
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    References listed on IDEAS

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    More about this item

    Keywords

    Natural resource extraction; Spatial equilibrium; Optimal pathways; Resource patterns; Spatial game; Non-timber forest products;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry

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