Year: 2010
Type: report
Abstract: Spatial connectivity of renewable resources induces a spatial externality in extraction.We explore the consequences of decentralized spatial property rights in the presence of spatial externalities.We generalize the notion of unitization -developed to enhance cooperative extraction of oil and gas fields -and apply it to renewable resources which face a similar spatial commons problem.We find that unitizing a common pool renewable resource can yield first-best outcomes even when participation is voluntary, provided profit sharing rules can vary by participant.
DOI: 10.3386/w16338
Authors: Daniel Kaffine, Christopher Costello
Language: English
Subfield: Safety Research
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2096741204