Cooperative Game Theory and its Application to Natural, Environmental, and Water Resource Issues: 2. Application to Natural and Environmental Resources

83 Pages Posted: 20 Apr 2016

See all articles by Stefano Zara

Stefano Zara

Università degli Studi di Genova

Ariel Dinar

World Bank - Agriculture and Rural Development Department

Fioravante Patrone

Università degli Studi di Genova - Dipartimento di Matematica

Date Written: November 1, 2006

Abstract

This paper provides a review of various applications of cooperative game theory (CGT) to issues of natural and environmental resources. With an increase in the level of competition over environmental and natural resources, the incidents of disputes have been at the center of allocation agreements. The paper reviews the cases of common pool resources such as fisheries and forests, and cases of environmental pollution such as acid rain, flow, and stock pollution. In addition to providing examples of cooperative solutions to allocation problems, the conclusion from this review suggests that cooperation over scarce environmental and natural resources is possible under a variety of physical conditions and institutional arrangements. CGT applications to international fishery disputes are especially useful in that they have been making headway in policy-related agreements among states and regions of the world. Forest applications are more local in nature, but of great relevance in solving disputes among communities and various levels of governments.

Keywords: Environmental Economics & Policies, Fisheries & Aquaculture, Common Property Resource Development, Economic Theory & Research, Ecosystems and Natural Habitats

Suggested Citation

Zara, Stefano and Dinar, Ariel and Patrone, Fioravante, Cooperative Game Theory and its Application to Natural, Environmental, and Water Resource Issues: 2. Application to Natural and Environmental Resources (November 1, 2006). World Bank Policy Research Working Paper No. 4073, Available at SSRN: https://ssrn.com/abstract=946832

Stefano Zara (Contact Author)

Università degli Studi di Genova

Via Vivaldi 5
Genova, 16126
Italy

Ariel Dinar

World Bank - Agriculture and Rural Development Department ( email )

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Washington, DC 20433
United States
202-473-0434 (Phone)

Fioravante Patrone

Università degli Studi di Genova - Dipartimento di Matematica ( email )

Via Dodecaneso 35
16146 Genoa
Italy
+39-010-3536835 (Phone)
+39-010-3536752 (Fax)

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