The Conservation Multiplier
Bård Harstad (University of Oslo)
GPI Working Paper No. 13 - 2022, published in Journal of Political Economy
Every government that controls an exhaustible resource must decide whether to exploit it or to conserve and thereby let the subsequent government decide whether to exploit or conserve. This paper develops a positive theory of this situation and shows when a small change in parameter values has a multiplier effect on exploitation. The multiplier strengthens the influence of a lobby paying for exploitation, and of a donor compensating for conservation. A successful donor pays every period for each unit; a successful lobby pays once. This asymmetry causes inefficient exploitation. A normative analysis uncovers when compensations are optimally offered to the party in power, to the general public, or to the lobby.
Other working papers
Ethical Consumerism – Philip Trammell (Global Priorities Institute and Department of Economics, University of Oxford)
I study a static production economy in which consumers have not only preferences over their own consumption but also external, or “ethical”, preferences over the supply of each good. Though existing work on the implications of external preferences assumes price-taking, I show that ethical consumers generically prefer not to act even approximately as price-takers. I therefore introduce a near-Nash equilibrium concept that generalizes the near-Nash equilibria found in literature on strategic foundations of general equilibrium…
How to neglect the long term – Hayden Wilkinson (Global Priorities Institute, University of Oxford)
Consider longtermism: the view that, at least in some of the most important decisions facing agents today, which options are morally best is determined by which are best for the long-term future. Various critics have argued that longtermism is false—indeed, that it is obviously false, and that we can reject it on normative grounds without close consideration of certain descriptive facts. In effect, it is argued, longtermism would be false even if real-world agents had promising means…
Is Existential Risk Mitigation Uniquely Cost-Effective? Not in Standard Population Models – Gustav Alexandrie (Global Priorities Institute, University of Oxford) and Maya Eden (Brandeis University)
What socially beneficial causes should philanthropists prioritize if they give equal ethical weight to the welfare of current and future generations? Many have argued that, because human extinction would result in a permanent loss of all future generations, extinction risk mitigation should be the top priority given this impartial stance. Using standard models of population dynamics, we challenge this conclusion. We first introduce a theoretical framework for quantifying undiscounted cost-effectiveness over…