Market knowledge as a driver of sustainable use of common-pool resources: A lab-in-the-field study among pastoralists in Ethiopia

Desalegn A Gugissa,Paul T.M Ingenbleek,Hans C.M Van Trijp

doi:10.1016/j.ecolecon.2021.107039

Desalegn A Gugissa, Paul T.M Ingenbleek + Show 1 more

Open Access

https://doi.org/10.1016/j.ecolecon.2021.107039

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Journal: Ecological Economics	Publication Date: Apr 1, 2021
Citations: 6	License type: cc-by

Affiliation: Kotebe Metropolitan University

Abstract

Rural communities that depend on common-pool resources for their livelihoods are being increasingly affected by the expanding global market system. Because such market integration is still relatively thin, communities vary in terms of market comprehension. Using a common-pool resource dilemma experiment, this study examines the effect of market knowledge on decisions concerning the use of common-pool resources among Borana pastoralists. Participants chose to use shared grazing rangelands at low or high levels of grazing intensity. Depending on the resource-use decisions in previous rounds, the participants encountered different pasture-availability conditions that required them to make trade-offs between their short-term interests and the long-term sustainability of the shared rangelands. The results indicate that, when resource conditions were good, resource users with more market knowledge are more likely to choose lower grazing intensity. During scarcity, this effect is weaker. The results further show that within-group variance in market knowledge has a negative effect on decisions relating to sustainable-resource use in times of resource scarcity. The results imply that providing an understanding of market functioning is of vital importance to protecting shared natural resources from depletion in communities experiencing increasing impact from the global market economy.

Highlights

The ongoing process of globalization is increasingly moving the global market system into remote parts of the globe, including to com munities whose subsistence depends on commonly shared natural re sources
We argue that the un derstandings that resource users have concerning the functioning and dynamics of markets affect their decisions con cerning the use of common-pool resources (Cecchi and Bulte, 2013)
This study examines the role of market knowledge in promoting the sustainable use of common-pool resources under various conditions of resource availability within the context of Ethiopian pastoralists

Summary

Introduction

The ongoing process of globalization is increasingly moving the global market system into remote parts of the globe, including to com munities whose subsistence depends on commonly shared natural re sources (e.g., grazing lands, forests, fishing areas, and irrigation systems). As markets expand, such resources are increasingly used to supply demands from external markets (Agrawal and Yadama, 1997). While market integration has positive effects on the livelihood of these communities (Keller and Shiue, 2007), it provides incentives for the overexploitation of natural resources, given that the influence of cash returns on decision-making in the commons dilemma (Hardin, 1968). As Acheson (2006) states “new markets can result in growing competition for resources and can motivate people to disobey rules, invade areas of others, or increase their exploitative efforts to the detriment of the resource” (p. 128)

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