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Common Property Resources as Development Drivers: A Study of a Fruit Cooperative in Himachal Pradesh, India

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  • Purnamita Dasgupta

Abstract

This study investigates the role of common property resources as a source of sustainable income in the context of opportunities created by economic development. Commercialization of the common can increase rural incomes and create incentives for conservation. However, income opportunities can also enable households to take advantage of exit opportunities; hence the long-run impact of the resource can be ambiguous. These issues are explored by analyzing data from fifteen villages in the Kangra district of Himachal Pradesh, India, where households are engaged in a fruit processing cooperative. The study finds that households gain with increased commercial use of tree products from the commons. However, welfare gains are skewed in favor of rich households because of the complementaries between land and market access and returns to common property resources. Further, richer households are more likely to plant new trees in their own land while commercialization appears to motivate poorer households to plant trees in the commons.

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Bibliographic Info

Paper provided by The South Asian Network for Development and Environmental Economics in its series Working papers with number 66.

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Handle: RePEc:snd:wpaper:66

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Postal: South Asian Network for Development and Environmental Economics PO Box: 8975, EPC: 1056 Kathmandu, Nepal

Related research

Keywords: Common property resources; tree-planting; commercialization; sustainable livelihoods; market opportunities.;

References

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  1. Alexander Karaivanov, 2009. "Heterogeneity, returns to scale, and collective action," Canadian Journal of Economics, Canadian Economics Association, vol. 42(2), pages 771-807, May.
  2. Holden, Stein T. & Shiferaw, Bekele & Wik, Mette, 1998. "Poverty, market imperfections and time preferences: of relevance for environmental policy?," Environment and Development Economics, Cambridge University Press, vol. 3(01), pages 105-130, February.
  3. Kant, Shashi, 2000. "A dynamic approach to forest regimes in developing economies," Ecological Economics, Elsevier, vol. 32(2), pages 287-300, February.
  4. Marc Jacobson & Joel De Castro & Vianca Aliaga & Julio Romero & MAllison Davis, 1998. "The Role of Tenure Security and Private Time Preference in Neotropical Deforestation," Land Economics, University of Wisconsin Press, vol. 74(2), pages 162-170.
  5. Dayton-Johnson, Jeff, 2000. "Determinants of collective action on the local commons: a model with evidence from Mexico," Journal of Development Economics, Elsevier, vol. 62(1), pages 181-208, June.
  6. Baland, Jean-Marie & Platteau, Jean-Philippe, 2000. "Halting Degradation of Natural Resources: Is There a Role for Rural Communities?," OUP Catalogue, Oxford University Press, number 9780198290612.
  7. Adger, W. Neil & Luttrell, Cecilia, 2000. "Property rights and the utilisation of wetlands," Ecological Economics, Elsevier, vol. 35(1), pages 75-89, October.
  8. E. Somanathan & R. Prabhakar & B.S. Mehta, 2002. "Collective action for forest conservation: Does heterogeneity matter?," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 02-01, Indian Statistical Institute, New Delhi, India.
  9. Edella Schlager & Elinor Ostrom, 1992. "Property-Rights Regimes and Natural Resources: A Conceptual Analysis," Land Economics, University of Wisconsin Press, vol. 68(3), pages 249-262.
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