Conservation of natural resources: Which matters - Having a regulation or the size of the penalty imposed?

Abstract

In this chapter, I investigate through a public good in rural Colombia how different institutional arrangements, particularly different external regulations, with a common characteristic–an external regulator with a weak enforcement capacity–derive into different contributions and compliances. I tested two monetary regulations and found that high penalties very often do more harm than good. I also found that low penalties and public and private reminders were very effective at increasing cooperation and rule compliance.