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
Economic growth under transformative AI – Philip Trammell (Global Priorities Institute, Oxford University) and Anton Korinek (University of Virginia)
Industrialized countries have long seen relatively stable growth in output per capita and a stable labor share. AI may be transformative, in the sense that it may break one or both of these stylized facts. This review outlines the ways this may happen by placing several strands of the literature on AI and growth within a common framework. We first evaluate models in which AI increases output production, for example via increases in capital’s substitutability for labor…
Cassandra’s Curse: A second tragedy of the commons – Philippe Colo (ETH Zurich)
This paper studies why scientific forecasts regarding exceptional or rare events generally fail to trigger adequate public response. I consider a game of contribution to a public bad. Prior to the game, I assume contributors receive non-verifiable expert advice regarding uncertain damages. In addition, I assume that the expert cares only about social welfare. Under mild assumptions, I show that no information transmission can happen at equilibrium when the number of contributors…
Critical-set views, biographical identity, and the long term – Elliott Thornley (Global Priorities Institute, University of Oxford)
Critical-set views avoid the Repugnant Conclusion by subtracting some constant from the welfare score of each life in a population. These views are thus sensitive to facts about biographical identity: identity between lives. In this paper, I argue that questions of biographical identity give us reason to reject critical-set views and embrace the total view. I end with a practical implication. If we shift our credences towards the total view, we should also shift our efforts towards ensuring that humanity survives for the long term.