Economic Model of Groundwater Damage Control in Semarang City: Prisoner's Dilemma Game
Abstract
Groundwater abstraction in Semarang City is thought to have triggered land subsidence and sea water intrusion. This research models the behavior of groundwater users through economic experiments using Prisoner's Dilemma Game. The experimental design is a 23 factorial design. The independent variables or factors are payoff, framing, and communication, while the response variable is the level of cooperation. The G statistic shows a significant logit equation model. Wald statistic shows a significant framing factor, whereas communication factor, framing and communication interaction factor, all factors interaction is significant but with the opposite sign. The study implies a policy based on the treatment proxy in experiments. First, narrating the depletion and the role of groundwater users is narrated. Second, building trust before implementing information disclosure on groundwater use. Third, determining groundwater extraction fines after internalizing scarcity rent in groundwater prices calculation.
References
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[26] Provencher, B., and Burt, O. 1993. The Externalities Associated with the Common Property Exploitation of Groundwater. Journal of Environmental Economics and Management, 24 (2): 139–58. DOI:https://doi.org/10.1006/jeem.1993.1010
[27] Sally, D. 1995. Conversation and Cooperation in Social Dilemmas. Rationality and Society, 7 (1): 58–92. DOI: https://doi.org/10.1177/1043463195007001004
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[29] Suhartono, E., Purwanto, P. and Suripin, S. 2015. Seawater Intrusion Modeling on Groundwater Confined Aquifer in Semarang. Procedia Environmental Sciences, 23: 110–15. DOI:https://doi.org/10.1016/j.proenv.2015.01.017
[30] Syaukat, Y., and Fox, G.C. 2004. Conjunctive Surface and Groundwater Management in The Jakarta Region, Indonesia. Journal of the American Water Resources Association, 40 (1): 241–50. DOI:https://doi.org/10.1111/j.1752-1688.2004.tb01022.x
[31] Wade, R. 1987. The Management of Common Property Resources: Collective Action as an Alternative to Privatisation or State Regulation. Cambridge Journal of Economics, 11 (2): 95–106. Available at: http://www.jstor.org/stable/23597063
[32] Wang, C., and Segarra, E. 2011. The Economics of Commonly Owned Groundwater When User Demand Is Perfectly Inelastic. Journal of Agricultural and Resource Economics, 36 (1): 95–120. Available at: http://www.jstor.org/stable/23243136.
[2] Andreoni, J. 1995. Warm-Glow versus Cold-Prickle: The Effects of Positive and Negative Framing on Cooperation in Experiments. The Quarterly Journal of Economics, 110 (1): 1–21. DOI:https://doi.org/10.2307/2118508
[3] Andreoni, J., and Miller, J.H. 1993. Rational Cooperation in the Finitely Repeated Prisoner’s Dilemma: Experimental Evidence. The Economic Journal, 103 (418): 570. DOI: https://doi.org/10.2307/2234532
[4] Apesteguia, J. 2006. Does Information Matter in the Commons? Journal of Economic Behavior & Organization, 60 (1): 55–69. DOI: https://doi.org/10.1016/j.jebo.2004.08.002
[5] Balliet, D. 2010. Communication and Cooperation in Social Dilemmas: A Meta-Analytic Review. Journal of Conflict Resolution, 54 (1): 39–57. DOI: https://doi.org/10.1177/0022002709352443
[6] Burness, H.S., and Brill, T.C. 2001. The Role for Policy in Common Pool Groundwater Use. Resource and Energy Economics, 23 (1): 19–40. DOI: https://doi.org/10.1016/S0928-7655(00)00029-4
[7] Cason, T. N., and Gangadharan, L. 2015. Promoting Cooperation in Nonlinear Social Dilemmas through Peer Punishment. Experimental Economics, 18 (1): 66–88. DOI: https://doi.org/10.1007/s10683-014-9393-0
[8] Cremer, D. D. and Van Lange, P.A. M. 2001. Why Prosocials Exhibit Greater Cooperation than Proselfs: The Roles of Social Responsibility and Reciprocity. European Journal of Personality, 15 (1_suppl): S5–18. DOI:https://doi.org/10.1002/per.418
[9] Davis, J. B. 2010. Individuals and Identity in Economics. Cambridge: Cambridge University Press. DOI:https://doi.org/10.1017/CBO9780511782237.
[10] Dawes, R M. 1980. Social Dilemmas. Annual Review of Psychology, 31 (1): 169–93. DOI:https://doi.org/10.1146/annurev.ps.31.020180.001125
[11] Encarna, E. and Dinar, A. 2013. Cooperative Management of Groundwater Resources in the Presence of Environmental Externalities. Environmental and Resource Economics, 54 (3): 443–69. DOI:https://doi.org/10.1007/s10640-012-9602-2
[12] Goerg, S.J., Rand, D. and Walkowitz, G. 2020. Framing Effects in the Prisoner’s Dilemma but Not in the Dictator Game. Journal of the Economic Science Association, 6 (1): 1–12. DOI:https://doi.org/10.1007/s40881-019-00081-1
[13] Grafton, Q., et al. 2008. The Economics of the Environment and Natural Resources. John Wiley & Sons.
[14] Hardin, G. 1968. The Tragedy of the Commons. Science, 162 (3859): 1243–48.
[15] Holt, C. A., and Capra, M. 2000. Classroom Games: A Prisoner’s Dilemma. The Journal of Economic Education, 31 (3): 229–36. DOI: https://doi.org/10.1080/00220480009596781
[16] Howe, C.W. 1979. Natural Resource Economics: Issues, Analysis, and Policy. John Wiley & Sons.
[17] Knapp, K. C., and Olson, L. J. 1995. The Economics of Conjunctive Groundwater Management with Stochastic Surface Supplies. Journal of Environmental Economics and Management, 28 (3): 340–56. DOI:https://doi.org/10.1006/jeem.1995.1022
[18] Kopelman, S., Weber, J. M. and Messick, D. M.. 2002. Factors Influencing Cooperation in Commons Dilemmas: A Review of Experimental Psychological Research. In The Drama of the Commons, 113–56. National Academy Press.
[19] Kreps, D. M, Milgrom, P., Roberts, J. and Wilson R. 1982. Rational Cooperation in the Finitely Repeated Prisoners’ Dilemma. Journal of Economic Theory, 27 (2): 245–52. DOI: https://doi.org/10.1016/0022-0531(82)90029-1
[20] Liebrand, W.B.G., Wilke, H.A.M., Vogel, R. and Wolters, F.J.M. 1986. Value Orientation and Conformity. Journal of Conflict Resolution, 30 (1): 77–97. DOI: https://doi.org/10.1177/0022002786030001006
[21] Moncur, J.E.T., and Pollock, R.L. 1988. Scarcity Rents for Water: A Valuation and Pricing Model. Land Economics, 64 (1): 62. DOI: https://doi.org/10.2307/3146608
[22] Montgomery, Douglas C. 2013. Design and Analysis of Experiments. Eight Edit. John Wiley & Sons, Inc.
[23] Ostrom, E. 1999. Revisiting the Commons: Local Lessons, Global Challenges. Science, 284 (5412): 278–82. DOI: https://doi.org/10.1126/science.284.5412.278
[24] Ostrom, E. 1990. Governing the Commons: The Evolution of Institutions for Collective Action. Cambridge university press.
[25] Piñon, A., and Gambara, H. 2005. A Meta-Analytic Review of Framing Effect: Risky, Attribute and Goal Framing. Psicothema, 17 (2): 325–31. Available at: https://www.redalyc.org/articulo.oa?id=72717222
[26] Provencher, B., and Burt, O. 1993. The Externalities Associated with the Common Property Exploitation of Groundwater. Journal of Environmental Economics and Management, 24 (2): 139–58. DOI:https://doi.org/10.1006/jeem.1993.1010
[27] Sally, D. 1995. Conversation and Cooperation in Social Dilemmas. Rationality and Society, 7 (1): 58–92. DOI: https://doi.org/10.1177/1043463195007001004
[28] Schrevel, A. 1997. Managing an Open Access Resource: Groundwater. In Groundwater Management: Sharing Responsibility for an Open Access Resource: Proceedings of the Wageningen Water Workshop, 1–18.
[29] Suhartono, E., Purwanto, P. and Suripin, S. 2015. Seawater Intrusion Modeling on Groundwater Confined Aquifer in Semarang. Procedia Environmental Sciences, 23: 110–15. DOI:https://doi.org/10.1016/j.proenv.2015.01.017
[30] Syaukat, Y., and Fox, G.C. 2004. Conjunctive Surface and Groundwater Management in The Jakarta Region, Indonesia. Journal of the American Water Resources Association, 40 (1): 241–50. DOI:https://doi.org/10.1111/j.1752-1688.2004.tb01022.x
[31] Wade, R. 1987. The Management of Common Property Resources: Collective Action as an Alternative to Privatisation or State Regulation. Cambridge Journal of Economics, 11 (2): 95–106. Available at: http://www.jstor.org/stable/23597063
[32] Wang, C., and Segarra, E. 2011. The Economics of Commonly Owned Groundwater When User Demand Is Perfectly Inelastic. Journal of Agricultural and Resource Economics, 36 (1): 95–120. Available at: http://www.jstor.org/stable/23243136.
Published
2021-12-01
How to Cite
SISWANTO, Bambang; SUGIYANTO, Franciscus Xaverius; KURNIA, Akhmad Syakir.
Economic Model of Groundwater Damage Control in Semarang City: Prisoner's Dilemma Game.
Journal of Environmental Management and Tourism, [S.l.], v. 12, n. 7, p. 1951 - 1960, dec. 2021.
ISSN 2068-7729.
Available at: <https://journals.aserspublishing.eu/jemt/article/view/6588>. Date accessed: 02 nov. 2024.
doi: https://doi.org/10.14505/jemt.12.7(55).20.
Section
Article
Copyright© 2024 The Author(s). Published by ASERS Publishing 2024. This is an open access article distributed under the terms of CC-BY 4.0 license.