IDEAS home Printed from https://ideas.repec.org/p/flo/wpaper/2009-05.html
   My bibliography  Save this paper

Over-exploitation of open-access natural resources and global indeterminacy in an economic growth model

Author

Listed:
  • Angelo Antoci

    (Universita' degli Studi di Sassari)

  • Marcello Galeotti

    (Dipartimento di Matematica per le Decisioni, Universita' degli Studi di Firenze)

  • Paolo Russu

    (Universita' degli Studi di Sassari)

Abstract

In this paper we use global analysis techniques to investigate an economic growth model with environmental negative externalities, giving rise to a three-dimensional dynamic system (the framework is the one introduced by Wirl (1997)). The dynamics of our model admits a locally attracting steady state which is, in fact, a poverty trap, coexisting with another steady state possessing saddle-point stability. Global dynamical analysis shows that, under some conditions on the parameters, if the economy state variables are close enough to those of the attractive point, then there exists a continuum of equilibrium orbits approaching the poverty trap and one orbit approaching the saddle-point.

Suggested Citation

  • Angelo Antoci & Marcello Galeotti & Paolo Russu, 2009. "Over-exploitation of open-access natural resources and global indeterminacy in an economic growth model," Working Papers - Mathematical Economics 2009-05, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    • Handle: RePEc:flo:wpaper:2009-05
    as

    Download full text from publisher

    File URL: http://www.disei.unifi.it/upload/sub/pubblicazioni/repec/flo/workingpapers/storicodimad/2009/dimadwp2009-05.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jorgen W. Weibull, 1997. "Evolutionary Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262731215, December.
    2. Perrings, Charles, 1989. "Environmental bonds and environmental research in innovative activities," Ecological Economics, Elsevier, vol. 1(1), pages 95-110, February.
    3. Perrings,Charles, 1987. "Economy and Environment," Cambridge Books, Cambridge University Press, number 9780521340816, November.
    4. Costanza, Robert & Perrings, Charles, 1990. "A flexible assurance bonding system for improved environmental management," Ecological Economics, Elsevier, vol. 2(1), pages 57-75, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Been-Lon Chen & Yu-Shan Hsu & Kazuo Mino, 2013. "Can consumption habit spillovers be a source of equilibrium indeterminacy?," Journal of Economics, Springer, vol. 109(3), pages 245-269, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Angelo Antoci & Simone Borghesi & Marcello Galeotti, 2013. "Environmental options and technological innovation: an evolutionary game model," Journal of Evolutionary Economics, Springer, vol. 23(2), pages 247-269, April.
    2. Antoci, Angelo & Borghesi, Simone & Russu, Paolo, 2012. "Environmental protection mechanisms and technological dynamics," Economic Modelling, Elsevier, vol. 29(3), pages 840-847.
    3. Simone Borghesi, 2020. "Satisfied or Reimbursed: An Innovative Index-Based Mechanism for the Environmental Protection of a Tourist Region," Sustainability, MDPI, vol. 12(21), pages 1-8, October.
    4. Angelo Antoci & Marcello Galeotti & Davide Radi, 2011. "Financial Tools for the Abatement of Traffic Congestion: A Dynamical Analysis," Computational Economics, Springer;Society for Computational Economics, vol. 38(3), pages 389-405, October.
    5. van den Bergh, Jeroen C.J.M., 2010. "Externality or sustainability economics?," Ecological Economics, Elsevier, vol. 69(11), pages 2047-2052, September.
    6. Jeroen C.J.M. van den Bergh, 2014. "Sustainable development in ecological economics," Chapters, in: Giles Atkinson & Simon Dietz & Eric Neumayer & Matthew Agarwala (ed.), Handbook of Sustainable Development, chapter 3, pages 41-54, Edward Elgar Publishing.
    7. Templet, Paul H., 1995. "Grazing the commons: an empirical analysis of externalities, subsidies and sustainability," Ecological Economics, Elsevier, vol. 12(2), pages 141-159, February.
    8. Gerard, David, 2000. "The law and economics of reclamation bonds," Resources Policy, Elsevier, vol. 26(4), pages 189-197, December.
    9. Sara Aghakazemjourabbaf & Margaret Insley, 2018. "Optimal timing of harzardous waste clean-up under an environmental bond an a strict liability rule," Working Papers 1803, University of Waterloo, Department of Economics, revised 06 Jan 2018.
    10. Perrings, Charles, 2001. "The economics of biological invasions," Land Use and Water Resources Research, University of Newcastle upon Tyne, Centre for Land Use and Water Resources Research, vol. 1, pages 1-9.
    11. Hourcade, Jean-Charles & Salles, Jean-Michel & Thery, Daniel, 1992. "Ecological economics and scientific controversies. Lessons from some recent policy making in the EEC," Ecological Economics, Elsevier, vol. 6(3), pages 211-233, December.
    12. Igarashi, Yoshiyuki & Coupal, Roger & Finnoff, David & Andersen, Matthew A., 2014. "Economics of Oil and Gas Development in the Presence of Reclamation and Bonding Requirements," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170600, Agricultural and Applied Economics Association.
    13. Aghakazemjourabbaf, Sara & Insley, Margaret, 2021. "Leaving your tailings behind: Environmental bonds, bankruptcy and waste cleanup," Resource and Energy Economics, Elsevier, vol. 65(C).
    14. Watzold, Frank, 2000. "Efficiency and applicability of economic concepts dealing with environmental risk and ignorance," Ecological Economics, Elsevier, vol. 33(2), pages 299-311, May.
    15. Adamson, Seabron & Sagar, Ambuj, 2002. "Managing climate risks using a tradable contingent security approach," Energy Policy, Elsevier, vol. 30(1), pages 43-51, January.
    16. Dufwenberg, Martin, 1997. "Some relationships between evolutionary stability criteria in games," Economics Letters, Elsevier, vol. 57(1), pages 45-50, November.
    17. Lichi Zhang & Yanyan Jiang & Junmin Wu, 2022. "Evolutionary Game Analysis of Government and Residents’ Participation in Waste Separation Based on Cumulative Prospect Theory," IJERPH, MDPI, vol. 19(21), pages 1-16, November.
    18. Kaika, Dimitra & Zervas, Efthimios, 2013. "The environmental Kuznets curve (EKC) theory. Part B: Critical issues," Energy Policy, Elsevier, vol. 62(C), pages 1403-1411.
    19. Tom Johnston & Michael Savery & Alex Scott & Bassel Tarbush, 2023. "Game Connectivity and Adaptive Dynamics," Papers 2309.10609, arXiv.org, revised Oct 2024.
    20. Gu, Tianqi & Xu, Weiping & Liang, Hua & He, Qing & Zheng, Nan, 2024. "School bus transport service strategies’ policy-making mechanism – An evolutionary game approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 182(C).

    More about this item

    Keywords

    environmental externalities; indeterminacy; history versus expectations; global analysis of dynamic systems;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:flo:wpaper:2009-05. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michele Gori (email available below). General contact details of provider: https://edirc.repec.org/data/defirit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.