A Dynamic Study on Ecological Disaster,Government Regulation,and Renewable Resources |
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| Authors: | Pu‐yan Nie Peng Sun Bill Z Yang |
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| Institution: | 1. Institute of Industrial Economics, Jinan University, , PR China;2. Department of Finance and Economics, Georgia Southern University, , USA;3. School of Economics, Zhongnan University of Economics and Law, , PR China |
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| Abstract: | This article develops a dynamic model to investigate renewable resource markets under different property rights. We find that different property rights regimes in renewable resource markets yield very different equilibria. Under private property rights, the valve point increases with the natural growth rate, productivity, number of firms, and marginal costs. Under common property rights, “the tragedy of the commons” inescapably occurs. This study suggests how to avoid ecological disaster by implementing a set of public policies. |
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