A Subscription vs. Appropriation Framework for Natural Resource Conflicts

Dripto Bakshi () and Indraneel Dasgupta ()
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Dripto Bakshi: Indian Statistical Institute

No 13763, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We examine how cross-community cost or benefit spillovers, arising from the consumption of group-specific public goods, affect both inter-group conflicts over the appropriation of such goods and decentralized private provision for their production. Our model integrates production versus appropriation choices, vis-Ã -vis group-specific public goods, with their decentralized voluntary supply, against a backdrop of such cross-community consumption spillovers. Our flexible and general formulation of consumption spillovers incorporates earlier specifications as alternative special cases. We show that stronger negative (or weaker positive) consumption spillovers across communities may reduce inter-group conflict and increase aggregate income (and consumption) in society under certain conditions. Thus, stronger negative consumption spillovers may have socially beneficial consequences. We also identify conditions under which their impact will be both conflict-augmenting and income-compressing. Our general theoretical analysis offers a conceptual structure within which to organize investigation of feedback loops linking ethnic conflict and natural resource degradation in developing country contexts.

Keywords: natural resource conflict; public good contest; rent-seeking; production versus appropriation; public bad (search for similar items in EconPapers)
JEL-codes: D72 D74 O10 O20 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2020-10
New Economics Papers: this item is included in nep-cdm and nep-isf
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Published - published in: A. Markandya and D. Rübbelke (eds.), Climate and Development; World Scientific, 2021

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Related works:
Chapter: A Subscription vs. Appropriation Framework for Natural Resource Conflicts (2021)
Working Paper: A subscription vs. appropriation framework for natural resource conflicts (2021)
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