@misc{bibcite_1731,
  author = {Giorgio Dini and Alessandro Tavoni and Anastasios Xepapadeas and Simon Levin},
  title = {Cross-System Externalities in Linked Commons: Theory and Laboratory Evidence\ },
  abstract = {<p>Amazon deforestation determines long-distance ecological impacts as the so-called flying river flowing from the Atlantic captures less Amazonian moisture, which negatively affects precipitation in distant regions westward. The magnitude of the externality depends critically on the strength of the linkage between two distant areas and on the robustness of the recipient downstream system. This paper experimentally studies stylized land-use decisions by landowners, whose activities cascade on water users downstream. After deriving a theoretical benchmark of the underlying continuous dynamic forestmanagement problem, we find that participants partly adjust their behavior to these interdependencies when early-warning signals are in place: deforestation is lower when spillovers are stronger and the downstream system is more fragile, leading to higher forest stocks and less frequent overshooting of critical thresholds.</p>},
  publisher = {Elsevier BV},
  doi = {10.2139/ssrn.7063958},
}