Exploiting common resources with capital-intensive technologies: the role of external forces
AbstractThis paper focuses on the interactions between local communities having at least some degree of informal claims over natural resources and external agents, particularly firms interested in commercial resource exploitation. The paper makes three contributions to the existing literature. First, unlike the literature on devolution and communal resource management, rather than concentrating on intra-community decisions, we extend the analysis to examine interactions between the community and outside agents. Second, unlike both the literature on conflict and bargaining, we integrate these two strands of the literature, so that we can endogenously derive the conditions under which community-firm interactions result in conflict or, alternatively, in bargaining agreements. Third, to the best of our knowledge, this is the first study that formally models the endogenous participation by third parties that may attempt to support communities in the process. We show that, in a context of weak property rights, improvements in the community's bargaining power vis-Ã¡-vis the firm are likely to increase resource extraction and thereby harm the environment. Moreover, an increase in the wage rate may increase or decrease resource extraction depending on initial conditions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Cambridge University Press in its journal Environment and Development Economics.
Volume (Year): 13 (2008)
Issue (Month): 05 (October)
Contact details of provider:
Postal: The Edinburgh Building, Shaftesbury Road, Cambridge CB2 2RU UK
Fax: +44 (0)1223 325150
Web page: http://journals.cambridge.org/jid_EDEProvider-Email:email@example.com
Other versions of this item:
- Engel, Stefanie & Lopez, Ramon E., 2004. "Exploiting Common Resources with Capital-Intensive Technologies: The Role of External Forces," Discussion Papers 18720, University of Bonn, Center for Development Research (ZEF).
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Stefanie Engel & Charles Palmer, 2011. "Complexities of Decentralization in a Globalizing World," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 50(2), pages 157-174, October.
- Engel, Stefanie & Palmer, Charles, 2008. "Payments for environmental services as an alternative to logging under weak property rights: The case of Indonesia," Ecological Economics, Elsevier, vol. 65(4), pages 799-809, May.
- Stefanie Engel & Ramón López & Charles Palmer, 2006. "Community–Industry Contracting over Natural Resource use in a Context of Weak Property Rights: The Case of Indonesia," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 33(1), pages 73-93, 01.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Keith Waters).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.