We study how society's preferences affect the resilience of economies that depend on more than one type of natural resource. In particular, we analyze whether the degree of complementarity of natural resources in consumer preferences may give rise to multiple steady states and path dependence...

Real world observations suggest that social norms of cooperation can be effective in overcoming social dilemmas such as the joint management of a common pool resource—but also that they can be subject to slow erosion and sudden collapse. We show that these patterns of erosion and collapse...

Social capital is one of the main determinants of community resource management success. We use the (average) amount sent in a trust game as a measure of social capital in five rural villages in India. Combining these experimental data with household surveys we analyze: (i) how the amount sent...

Investment subsidies are widely used to induce adoption of new technologies that can lower the (marginal) cost of reducing emissions. To economize on these subsidies, governments would like to distinguish between firms that need to receive a subsidy to adopt a new technology, and firms that...