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Local environmental quality and heterogeneity in an OLG agent-based model with spatial externalities

Most of the theoretical contributions on the relationship between economy and environment assume the environment as a good distributed homogeneously among agents. The aim of this work is to relax this hypothesis and to consider that the environment can have a local character even if conditioned thro...

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Autores principales: Caravaggio, Andrea, Sodini, Mauro
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Springer Berlin Heidelberg 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8810287/
https://www.ncbi.nlm.nih.gov/pubmed/35132335
http://dx.doi.org/10.1007/s11403-022-00346-9
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author Caravaggio, Andrea
Sodini, Mauro
author_facet Caravaggio, Andrea
Sodini, Mauro
author_sort Caravaggio, Andrea
collection PubMed
description Most of the theoretical contributions on the relationship between economy and environment assume the environment as a good distributed homogeneously among agents. The aim of this work is to relax this hypothesis and to consider that the environment can have a local character even if conditioned through externalities by the choices made at the global level. In this article, we adapt the classical framework introduced in John and Pecchenino (Econ J 104(427):1393–1410, 1994) to analyze the dynamic relationship between environment and economic process, and we propose an OLG agent-based model where each agent perceives her own level of environmental quality determined by her own decisions, and by the decisions of those living around her. Despite the attention devoted to local environmental aspects, network externalities (determined through the scheme of Moore neighborhoods) play a fundamental role in defining environmental dynamics and they may induce the emergence of cyclical dynamics. The occurrence of oscillations in the local environmental quality is partially mitigated by the presence of heterogeneity in individuals’ preferences. Finally, when a centralized planner is introduced, the dynamics converge to stationary values regardless of the assumption on heterogeneity of agents.
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spelling pubmed-88102872022-02-03 Local environmental quality and heterogeneity in an OLG agent-based model with spatial externalities Caravaggio, Andrea Sodini, Mauro J Econ Interact Coord Regular Article Most of the theoretical contributions on the relationship between economy and environment assume the environment as a good distributed homogeneously among agents. The aim of this work is to relax this hypothesis and to consider that the environment can have a local character even if conditioned through externalities by the choices made at the global level. In this article, we adapt the classical framework introduced in John and Pecchenino (Econ J 104(427):1393–1410, 1994) to analyze the dynamic relationship between environment and economic process, and we propose an OLG agent-based model where each agent perceives her own level of environmental quality determined by her own decisions, and by the decisions of those living around her. Despite the attention devoted to local environmental aspects, network externalities (determined through the scheme of Moore neighborhoods) play a fundamental role in defining environmental dynamics and they may induce the emergence of cyclical dynamics. The occurrence of oscillations in the local environmental quality is partially mitigated by the presence of heterogeneity in individuals’ preferences. Finally, when a centralized planner is introduced, the dynamics converge to stationary values regardless of the assumption on heterogeneity of agents. Springer Berlin Heidelberg 2022-02-03 2022 /pmc/articles/PMC8810287/ /pubmed/35132335 http://dx.doi.org/10.1007/s11403-022-00346-9 Text en © The Author(s) 2022 https://creativecommons.org/licenses/by/4.0/Open AccessThis article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ (https://creativecommons.org/licenses/by/4.0/) .
spellingShingle Regular Article
Caravaggio, Andrea
Sodini, Mauro
Local environmental quality and heterogeneity in an OLG agent-based model with spatial externalities
title Local environmental quality and heterogeneity in an OLG agent-based model with spatial externalities
title_full Local environmental quality and heterogeneity in an OLG agent-based model with spatial externalities
title_fullStr Local environmental quality and heterogeneity in an OLG agent-based model with spatial externalities
title_full_unstemmed Local environmental quality and heterogeneity in an OLG agent-based model with spatial externalities
title_short Local environmental quality and heterogeneity in an OLG agent-based model with spatial externalities
title_sort local environmental quality and heterogeneity in an olg agent-based model with spatial externalities
topic Regular Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8810287/
https://www.ncbi.nlm.nih.gov/pubmed/35132335
http://dx.doi.org/10.1007/s11403-022-00346-9
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