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Unitization of Spatially Connected Renewable Resources

Author

Listed:
  • Kaffine Daniel T

    () (Colorado School of Mines)

  • Costello Christopher

    () (University of California, Santa Barbara)

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.

Suggested Citation

  • Kaffine Daniel T & Costello Christopher, 2011. "Unitization of Spatially Connected Renewable Resources," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-31, March.
  • Handle: RePEc:bpj:bejeap:v:11:y:2011:i:1:n:15
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Christopher Costello & Bruno Nkuiya & Nicolas Querou, 2017. "Extracting spatial resources under possible regime shift," Working Papers 17-07, LAMETA, Universitiy of Montpellier.
    2. repec:eee:eecrev:v:94:y:2017:i:c:p:23-44 is not listed on IDEAS
    3. Costello, Christopher & Quérou, Nicolas & Tomini, Agnes, 2015. "Partial enclosure of the commons," Journal of Public Economics, Elsevier, vol. 121(C), pages 69-78.
    4. Christopher Costello & Nicolas Querou & Agnès Tomini, 2014. "Spatial concessions with limited tenure," Post-Print hal-01123392, HAL.
    5. Costello, Christopher & Quérou, Nicolas & Tomini, Agnes, 2017. "Private eradication of mobile public bads," European Economic Review, Elsevier, vol. 94(C), pages 23-44.
    6. Gary D. Libecap, 2013. "Addressing Global Environmental Externalities: Transaction Costs Considerations," NBER Working Papers 19501, National Bureau of Economic Research, Inc.
    7. Zhou, Rong & Segerson, Kathleen, 2014. "Individual vs. Collective Quotas in Fisheries Management: Efficiency and Distributional Impacts," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170601, Agricultural and Applied Economics Association.
    8. Nicolas Querou, 2018. "Interacting collective action problems in the commons," CEE-M Working Papers 18-04, CEE-M, Universitiy of Montpellier, CNRS, INRA, Montpellier SupAgro.
    9. Peifang Yang & Daniel T. Kaffine, 2016. "Community-Based Tradable Permits for Localized Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(4), pages 773-788, December.
    10. Sampson, Gabriel S. & Sanchirico, James N. & Wilen, James E., 2015. "Accounting for internal organization and spatial scale in spatial property rights fisheries," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205641, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    11. Florian K. Diekert & Emmi Nieminen, 2017. "International Fisheries Agreements with a Shifting Stock," Dynamic Games and Applications, Springer, vol. 7(2), pages 185-211, June.
    12. David Aadland & Charles Sims & David Finnoff, 2015. "Spatial Dynamics of Optimal Management in Bioeconomic Systems," Computational Economics, Springer;Society for Computational Economics, vol. 45(4), pages 545-577, April.

    More about this item

    JEL classification:

    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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