Japan-China 2008 Agreement: Common-Pool Resource Governance Problem

Irsadanar, Rafyoga Jehan Pratama; Kimura, Kan

doi:10.18196/jgp.122134

Cited by 3 publications

(1 citation statement)

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“…One of the characteristics of common resources between countries is that these resources are not uniformly distributed (equally) and the different share of countries can provide a relative advantage for a country that has a greater share of resources. Logical exploitation and joint development can be effective if the issue of restriction is resolved (Irsadanar & Kimura, 2021). different legal positions in the field of territorial sovereignty in accordance with the common area are the challenges ahead of common resources (Hayashi, 2012) Since foreign currency income from the sale of natural resources has a significant impact on government budgets (Cerqueti &Ventura, 2020 andSilva &Costa, 2019), countries are trying to exploit and extract natural resources faster.…”

Section: Introductionmentioning

confidence: 99%

Examining the Exploitation Strategies of Common Natural Resource (Game Theory Approach)

Salimian,

Mamipour,

Salimian

2024

Preprint

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Exploitation of natural resources such as oil and gas fields, coal and water basins is very important in the economic growth of countries. The importance of this issue for countries, especially the common natural resources, is twofold. Exploitation of common resources between countries is of particular importance due to its special role in economic growth, increasing stability, reducing political tensions and promoting cooperation between countries. This study focuses on modeling the exploitation of common natural resources through the design of a static game between two countries. The modeling performed addresses the effect of each country's share of the common resource and the impact of sanctions on the benefits obtained by both parties, using a mathematical approach. The results showed that the adoption of cooperation policy by each country depends on the share of each country and the level of sanctions imposed on the interested parties. In general, each country only adopts the policy of cooperation in the exploitation of common resources if the level of sanctions imposed against the other party is low and insignificant. In other words, increasing the level of sanctions drives countries towards adopting a non-cooperative policy. JEL Classification:L72, F51, C72, C62.

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