Group Incentives for Environmental Protection and Natural Resource Management

Kathleen Segerson ()
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Kathleen Segerson: Department of Economics, University of Connecticut, Storrs, Connecticut, USA

Annual Review of Resource Economics, 2022, vol. 14, issue 1, 597-619

Abstract: Group incentives can and have been used to address a range of environmental and resource problems. These schemes base individual penalties and/or rewards on the performance of a group of individuals or firms who contribute to the environmental or resource problem. The economics literature on team incentives and public goods, as well as the literature specifically on environmental and natural resource management, provides insights into the design of group incentives. This article reviews the literature on group incentives in the context of environmental protection and natural resource policy. This literature suggests that group incentives can be effective and even efficient as environmental policy tools. However, the outcomes under group incentives will likely depend on a combination of the policy design and the nature of the internal group interactions. Within-group interactions are likely to be particularly important when policies involve thresholds so that coordination is needed to reach a cooperative equilibrium.

Keywords: ambient taxes; collective action; collective quotas; environmental policy; group incentives; payments for ecosystem services (search for similar items in EconPapers)
JEL-codes: Q1 Q2 Q3 Q5 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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DOI: 10.1146/annurev-resource-111920-020235

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