Files

Abstract

This paper uses experimental methods to examine how individuals react to a set of voluntary incentives related to the conservation of a resource. The goal was to determine whether conservation over a critical area, such as a deep portion of an aquifer, could be encouraged, and whether coordination between individuals could be induced. Participants were faced with a bidding process through which units were selected for conservation, and some participants were offered an agglomeration bonus for conserving units that shared a border. Examining how bids changed across rounds revealed the existence of a learning process; implying that a similar real-world program would need to provide a large amount of information up front in order to achieve the desired effect. Using a monetary selection constraint resulted in more units placed in conservation. The bonus did not necessarily encourage conservation at the critical area, but it did reduce participant’s bid amounts.

Details

PDF

Statistics

from
to
Export
Download Full History