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Extracting spatial resources under possible regime shift

Author

Listed:
  • Christopher Costello

    (Bren School of Environmental Science and Managemen)

  • Bruno Nkuiya

    (University of Alberta)

  • Nicolas Querou

    (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier, CNRS - Centre National de la Recherche Scientifique)

Abstract

We examine theoretically a system of spatially-connected natural resource concessions with limited tenure. The resource migrates around the system and thus induces a spatial externality, so complete decentralization will not solve the tragedy of the commons. We analyze a system in which conces-sions can be renewed, but only if their owners maintain resource stocks above a pre-defined target. We show that this instrument improves upon the decentralized property right solution and can replicate (under general conditions) the socially optimal extraction path in every patch, in perpetuity. The duration of tenure and the dispersal of the resource play pivotal roles in whether this instrument achieves the socially optimal outcome, and sustains cooperation of all concessionaires.

Suggested Citation

  • Christopher Costello & Bruno Nkuiya & Nicolas Querou, 2017. "Extracting spatial resources under possible regime shift," Working Papers hal-01615939, HAL.
    • Handle: RePEc:hal:wpaper:hal-01615939
    Note: View the original document on HAL open archive server: https://hal.science/hal-01615939
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    References listed on IDEAS

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    Cited by:

    1. Fabbri, G. & Faggian, S. & Freni, G., 2018. "Spatial resource wars: A two region example," Working Papers 2018-04, Grenoble Applied Economics Laboratory (GAEL).

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