Economic Strategy

Economic Strategy

The Role of Communication in Conserving Common Natural Resources and Providing Policy Recommendations for the Implementation of General Environmental and Natural Resources Policies: An Experimental Laboratory Study

Document Type : Original Article

Authors
1 Assistant Professor, Department of Economics and Systems, Institute for Management and Planning Studies, Tehran, Iran,
2 Associate Professor, Department of Economics and Systems, Institute for Management and Planning Studies, Tehran, Iran,
3 Corresponding author, PhD candidate in Economics, Institute for Management and Planning Studies, Tehran, Iran
Abstract
Given the country's comprehensive approach towards the protection, development, and sustainable utilization of common natural resources as outlined in the general environmental and natural resources policies, the present study focuses on the role of group dialogue in the conservation of common natural resources. Users of common natural resources or common pool resources face a conflict between individual and collective interests, similar to players in a Prisoner's Dilemma game. This conflict arises from the free-rider problem and negative externalities, leading individuals to adopt non-cooperative strategies as their dominant strategy. Consequently, theory predicts that the degradation of common natural resources is inevitable and expected. This research aims to simulate the tragedy of the commons phenomenon using a Prisoner's Dilemma game. Through a laboratory experiment, we investigate whether introducing communication and dialogue opportunities among subjects in the game can alter their behavior towards increased cooperation, potentially resulting in reduced degradation of common natural resources. The common pool resource game (a variant of the Prisoner's Dilemma) was designed using the Otree software. Data collection for this study was conducted through an online economic laboratory experiment and an online questionnaire, involving 104 subjects from various universities across the country (predominantly from universities in Tehran). To analyze the results and findings, the Ordinary Least Squares (OLS) regression method was employed. The primary finding of this study suggests that communication and dialogue between subjects can lead to increased cooperation and reduced degradation of common natural resources.
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  • Receive Date 12 January 2025
  • Revise Date 02 May 2025
  • Accept Date 04 June 2025