[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/lsg/lsgwps/wp145.html
   My bibliography  Save this paper

Network economics and the environment: insights and perspectives

Author

Listed:
  • Sergio Currarini
  • Carmen Marchiori
  • Alessandro Tavoni
Abstract
Recent research in the field of network economics has shown how explicitly modelling the network structure of social and economic relations can provide significant theoretical insights, as well as account for previously unexplained empirical evidence. Despite their critical importance to many environmental problems, network structures and dynamics have been largely disregarded by the environmental economics literature. This paper aims to begin to fill this gap by analysing how networks can provide new insights for both theory and practice, and identifying several avenues for future research. The paper addresses questions pertaining to a wide range of issues, including the adoption and diffusion of green technologies, access to and distribution of natural resources, common-pool resource management and governance, and the stability of international environmental coalitions.

Suggested Citation

  • Sergio Currarini & Carmen Marchiori & Alessandro Tavoni, 2014. "Network economics and the environment: insights and perspectives," GRI Working Papers 145, Grantham Research Institute on Climate Change and the Environment.
    • Handle: RePEc:lsg:lsgwps:wp145
    as

    Download full text from publisher

    File URL: http://www.lse.ac.uk/GranthamInstitute/wp-content/uploads/2014/02/WP145-Network-economics-and-the-environment.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Parkash Chander & Henry Tulkens, 2006. "The Core of an Economy with Multilateral Environmental Externalities," Springer Books, in: Parkash Chander & Jacques Drèze & C. Knox Lovell & Jack Mintz (ed.), Public goods, environmental externalities and fiscal competition, chapter 0, pages 153-175, Springer.
    2. Currarini, Sergio & Feri, Francesco, 2006. "Delegation versus centralization: The role of externalities," Research in Economics, Elsevier, vol. 60(2), pages 112-119, June.
    3. Carmen Marchiori & Susan Sayre & Leo Simon, 2012. "Bargaining and Devolution in the Upper Guadiana Basin," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 51(3), pages 453-470, March.
    4. Sergio Currarini & Massimo Morelli, 2000. "original papers : Network formation with sequential demands," Review of Economic Design, Springer;Society for Economic Design, vol. 5(3), pages 229-249.
    5. Timothy Conley & Udry Christopher, 2001. "Social Learning Through Networks: The Adoption of New Agricultural Technologies in Ghana," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 668-673.
    6. Sergio Currarini, & Elena Fumagalli & Fabrizio Panebianco, 2012. "Games on Networks: Direct Complements and Indirect Substitutes," Discussion Papers in Economics 13/04, Division of Economics, School of Business, University of Leicester.
    7. Genicot, Garance & Ray, Debraj, 2006. "Contracts and externalities: How things fall apart," Journal of Economic Theory, Elsevier, vol. 131(1), pages 71-100, November.
    8. Coralio Ballester & Antoni Calvó-Armengol & Yves Zenou, 2006. "Who's Who in Networks. Wanted: The Key Player," Econometrica, Econometric Society, vol. 74(5), pages 1403-1417, September.
    9. Jackson, Matthew O. & van den Nouweland, Anne, 2005. "Strongly stable networks," Games and Economic Behavior, Elsevier, vol. 51(2), pages 420-444, May.
    10. Pretty, Jules & Ward, Hugh, 2001. "Social Capital and the Environment," World Development, Elsevier, vol. 29(2), pages 209-227, February.
    11. Alessandro Tavoni & Maja Schlüter & Simon Levin, 2010. "The Survival of the Conformist: Social Pressure and Renewable Resource Management," Working Papers 2010.127, Fondazione Eni Enrico Mattei.
    12. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-894, Supplemen.
    13. Avinash Dixit, 2003. "Clubs with Entrapment," American Economic Review, American Economic Association, vol. 93(5), pages 1824-1829, December.
    14. Antoni Calvó-Armengol & Matthew O. Jackson, 2004. "The Effects of Social Networks on Employment and Inequality," American Economic Review, American Economic Association, vol. 94(3), pages 426-454, June.
    15. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    16. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October.
    17. Sergio Currarini & Matthew O. Jackson & Paolo Pin, 2009. "An Economic Model of Friendship: Homophily, Minorities, and Segregation," Econometrica, Econometric Society, vol. 77(4), pages 1003-1045, July.
    18. Nugent, Jeffrey B. & Sanchez, Nicholas, 1999. "The local variability of rainfall and tribal institutions: the case of Sudan," Journal of Economic Behavior & Organization, Elsevier, vol. 39(3), pages 263-291, July.
    19. Bloch, Francis & Jackson, Matthew O., 2007. "The formation of networks with transfers among players," Journal of Economic Theory, Elsevier, vol. 133(1), pages 83-110, March.
    20. Nobuyuki Hanaki & Alexander Peterhansl & Peter S. Dodds & Duncan J. Watts, 2007. "Cooperation in Evolving Social Networks," Management Science, INFORMS, vol. 53(7), pages 1036-1050, July.
    21. Goyal, Sanjeev & Moraga-Gonzalez, Jose Luis, 2001. "R&D Networks," RAND Journal of Economics, The RAND Corporation, vol. 32(4), pages 686-707, Winter.
    22. Bardhan, Pranab & Ghatak, Maitreesh & Karaivanov, Alexander, 2007. "Wealth inequality and collective action," Journal of Public Economics, Elsevier, vol. 91(9), pages 1843-1874, September.
    23. Roger B. Myerson, 1977. "Graphs and Cooperation in Games," Mathematics of Operations Research, INFORMS, vol. 2(3), pages 225-229, August.
    24. Sergio Currarini, 2007. "Network design in games with spillovers," Review of Economic Design, Springer;Society for Economic Design, vol. 10(4), pages 305-326, March.
    25. Gabrielle Demange, 2004. "On Group Stability in Hierarchies and Networks," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 754-778, August.
    26. Weir, Sharada & Knight, John, 2004. "Externality Effects of Education: Dynamics of the Adoption and Diffusion of an Innovation in Rural Ethiopia," Economic Development and Cultural Change, University of Chicago Press, vol. 53(1), pages 93-113, October.
    27. Christoph Hauert & Michael Doebeli, 2004. "Spatial structure often inhibits the evolution of cooperation in the snowdrift game," Nature, Nature, vol. 428(6983), pages 643-646, April.
    28. Molden, David, 2007. "Water for food, water for life: a comprehensive assessment of water management in agriculture," IWMI Books, Reports H040193, International Water Management Institute.
    29. Benjamin Golub & Matthew O. Jackson, 2012. "How Homophily Affects the Speed of Learning and Best-Response Dynamics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(3), pages 1287-1338.
    30. Steven J. Lade & Alessandro Tavoni & Simon A. Levin & Maja Schl�ter, 2013. "Regime shifts in a social-ecological system," GRI Working Papers 105, Grantham Research Institute on Climate Change and the Environment.
    31. Franz Hubert & Onur Cobanli, 2012. "Pipeline Power," Koç University-TUSIAD Economic Research Forum Working Papers 1224, Koc University-TUSIAD Economic Research Forum.
    32. Andrea Galeotti & Sanjeev Goyal & Matthew O. Jackson & Fernando Vega-Redondo & Leeat Yariv, 2010. "Network Games," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(1), pages 218-244.
    33. H. Peyton Young, 2009. "Innovation Diffusion in Heterogeneous Populations: Contagion, Social Influence, and Social Learning," American Economic Review, American Economic Association, vol. 99(5), pages 1899-1924, December.
    34. Trawick, Paul, 2003. "Against the Privatization of Water: An Indigenous Model for Improving Existing Laws and Successfully Governing the Commons," World Development, Elsevier, vol. 31(6), pages 977-996, June.
    35. Elinor Ostrom, 2003. "How Types of Goods and Property Rights Jointly Affect Collective Action," Journal of Theoretical Politics, , vol. 15(3), pages 239-270, July.
    36. Dutta, Bhaskar & Mutuswami, Suresh, 1997. "Stable Networks," Journal of Economic Theory, Elsevier, vol. 76(2), pages 322-344, October.
      • Dutta, Bhaskar & Mutuswami, Suresh, 1996. "Stable Networks," Working Papers 971, California Institute of Technology, Division of the Humanities and Social Sciences.
    37. Carraro, Carlo & Siniscalco, Domenico, 1993. "Strategies for the international protection of the environment," Journal of Public Economics, Elsevier, vol. 52(3), pages 309-328, October.
    38. Martin A. Nowak & Akira Sasaki & Christine Taylor & Drew Fudenberg, 2004. "Emergence of cooperation and evolutionary stability in finite populations," Nature, Nature, vol. 428(6983), pages 646-650, April.
    39. Ilya Segal, 1999. "Contracting with Externalities," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(2), pages 337-388.
    40. Calvo-Armengol, Antoni, 2004. "Job contact networks," Journal of Economic Theory, Elsevier, vol. 115(1), pages 191-206, March.
    41. H. Leibenstein, 1950. "Bandwagon, Snob, and Veblen Effects in the Theory of Consumers' Demand," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 64(2), pages 183-207.
    42. Rachel E. Kranton & Deborah F. Minehart, 2001. "A Theory of Buyer-Seller Networks," American Economic Review, American Economic Association, vol. 91(3), pages 485-508, June.
    43. repec:wsr:wpaper:y:2012:i:093 is not listed on IDEAS
    44. Molle, Francois & Wester, P. & Hirsch, P. & Jensen, J. R. & Murray-Rust, H. & Paranjpye, V. & Pollard, S. & van der Zaag, P., 2007. "River basin development and management," IWMI Books, Reports H040208, International Water Management Institute.
    45. Galasso, Alberto, 2008. "Coordination and bargaining power in contracting with externalities," Journal of Economic Theory, Elsevier, vol. 143(1), pages 558-570, November.
    46. Molden, David, 2007. "Water for food, water for life: a comprehensive assessment of water management in agriculture: summary," IWMI Books, Reports H039769, International Water Management Institute.
    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. Michael Finus & Bianca Rundshagen, 2016. "Game Theory and Environmental and Resource Economics—In Honour of Alfred Endres, Part Two," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(1), pages 1-4, September.
    2. Giorgio Fabbri & Silvia Faggian & Giuseppe Freni, 2022. "On competition for spatially distributed resources in networks: an extended version," Working Papers 2022:03, Department of Economics, University of Venice "Ca' Foscari".
    3. Jewell, Jessica & Vetier, Marta & Garcia-Cabrera, Daniel, 2019. "The international technological nuclear cooperation landscape: A new dataset and network analysis," Energy Policy, Elsevier, vol. 128(C), pages 838-852.
    4. Efthymia Kyriakopoulou & Anastasios Xepapadeas, 2021. "Natural Resource Management: A Network Perspective," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(2), pages 221-256, October.
    5. Fabbri, Giorgio & Faggian, Silvia & Freni, Giuseppe, 2024. "On competition for spatially distributed resources in networks," Theoretical Economics, Econometric Society, vol. 19(2), May.
    6. Mauleon, Ana & Nanumyan, Mariam & Vannetelbosch, Vincent, 2024. "Ideal efforts and consensus in a multi-layer network game," LIDAM Discussion Papers CORE 2024023, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Müller-Hansen, Finn & Heitzig, Jobst & Donges, Jonathan & Cardoso, Manoel F. & Dalla-Nora, Eloi L. & Andrade, Pedro R. & Kurths, Jürgen & Thonicke, Kirsten, 2019. "Can intensification of cattle ranching reduce deforestation in the Amazon? Insights from an agent-based social-ecological model," SocArXiv x5q9j, Center for Open Science.
    8. Min, Yong & Du, Yuchen & Jin, Cheng, 2018. "The effect of link rewiring on a coevolutionary common pool resource game," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 512(C), pages 935-944.
    9. Vasquez Caballero, Smit & Salgueiro-Otero, Diego & Ojea, Elena, 2023. "The Role of Catch Portfolios in Characterizing Species' Economic Linkages and Fishers' Responses to Climate Change Impacts," Ecological Economics, Elsevier, vol. 205(C).
    10. Müller-Hansen, Finn & Heitzig, Jobst & Donges, Jonathan F. & Cardoso, Manoel F. & Dalla-Nora, Eloi L. & Andrade, Pedro & Kurths, Jürgen & Thonicke, Kirsten, 2019. "Can Intensification of Cattle Ranching Reduce Deforestation in the Amazon? Insights From an Agent-based Social-Ecological Model," Ecological Economics, Elsevier, vol. 159(C), pages 198-211.
    11. Günther, Michael & Hellmann, Tim, 2015. "Local and Global Pollution and International Environmental Agreements in a Network Approach," Center for Mathematical Economics Working Papers 545, Center for Mathematical Economics, Bielefeld University.
    12. Günther, Michael & Hellmann, Tim, 2017. "International environmental agreements for local and global pollution," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 38-58.

    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. Jackson, Matthew O. & Zenou, Yves, 2015. "Games on Networks," Handbook of Game Theory with Economic Applications,, Elsevier.
    2. de Marti, Joan & Zenou, Yves, 2009. "Social Networks," Working Paper Series 816, Research Institute of Industrial Economics.
    3. Roland Pongou & Roberto Serrano, 2009. "A dynamic theory of fidelity networks with an application to the spread of HIV/AIDS," Working Papers 2009-03, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
    4. Matthew O. Jackson & Brian W. Rogers & Yves Zenou, 2016. "Networks: An Economic Perspective," Papers 1608.07901, arXiv.org.
    5. Marco Marini, 2007. "An Overview of Coalition & Network Formation Models for Economic Applications," Working Papers 0712, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2007.
    6. Joost Vandenbossche & Thomas Demuynck, 2013. "Network Formation with Heterogeneous Agents and Absolute Friction," Computational Economics, Springer;Society for Computational Economics, vol. 42(1), pages 23-45, June.
    7. Pongou, Roland & Serrano, Roberto, 2013. "Dynamic Network Formation in Two-Sided Economies," MPRA Paper 46021, University Library of Munich, Germany.
    8. Mauleon, Ana & Sempere-Monerris, Jose J. & Vannetelbosch, Vincent J., 2011. "Networks of manufacturers and retailers," Journal of Economic Behavior & Organization, Elsevier, vol. 77(3), pages 351-367, March.
    9. Dutta, Bhaskar & Ghosal, Sayantan & Ray, Debraj, 2005. "Farsighted network formation," Journal of Economic Theory, Elsevier, vol. 122(2), pages 143-164, June.
    10. Pongou, Roland & Serrano, Roberto, 2016. "Volume of trade and dynamic network formation in two-sided economies," Journal of Mathematical Economics, Elsevier, vol. 63(C), pages 147-163.
    11. Marco A. Marini, 2007. "An Overview of Coalitions and Networks Formation Models for Economic Applications," Working Papers 0707, CREI Università degli Studi Roma Tre, revised 2007.
    12. Sanjeev Goyal, 2015. "Networks in Economics: A Perspective on the Literature," Cambridge Working Papers in Economics 1548, Faculty of Economics, University of Cambridge.
    13. Matthew O. Jackson, 2003. "A Survey of Models of Network Formation: Stability and Efficiency," Game Theory and Information 0303011, University Library of Munich, Germany.
    14. Rodrigo J. Harrison & Roberto Munoz, 2003. "Stability and Equilibrium Selection in a Link Formation Game," Game Theory and Information 0306004, University Library of Munich, Germany.
    15. Gary Charness & Francesco Feri & Miguel A. Meléndez‐Jiménez & Matthias Sutter, 2014. "Experimental Games on Networks: Underpinnings of Behavior and Equilibrium Selection," Econometrica, Econometric Society, vol. 82(5), pages 1615-1670, September.
    16. Jean-François Caulier & Ana Mauleon & Vincent Vannetelbosch, 2013. "Contractually stable networks," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(2), pages 483-499, May.
    17. Sommarat Chantarat & Christopher Barrett, 2012. "Social network capital, economic mobility and poverty traps," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(3), pages 299-342, September.
    18. Antoni Calvó-Armengol & Rahmi İlkılıç, 2009. "Pairwise-stability and Nash equilibria in network formation," International Journal of Game Theory, Springer;Game Theory Society, vol. 38(1), pages 51-79, March.
    19. Page Jr., Frank H. & Wooders, Myrna, 2009. "Strategic basins of attraction, the path dominance core, and network formation games," Games and Economic Behavior, Elsevier, vol. 66(1), pages 462-487, May.
    20. Carayol, Nicolas & Delille, Rémy & Vannetelbosch, Vincent, 2015. "Allocating value among farsighted players in network formation," Economics Letters, Elsevier, vol. 137(C), pages 50-53.

    More about this item

    JEL classification:

    • N0 - Economic History - - General

    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:lsg:lsgwps:wp145. 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: The GRI Administration (email available below). General contact details of provider: https://edirc.repec.org/data/grlseuk.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.