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Success and Failure of Communities Managing Natural Resources:Static and Dynamic Inefficiencies

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  • François Libois

    (CRED, University of Namur)

Abstract

This paper presents an analytical framework to understand why some communities successfully manage their renewable natural resources and some fail to do it. We develop a N-players, two-period non-cooperative game where a community can impose some exogenous amount of sanctions. We first show that rules preventing dynamic inefficiencies may exist even though static inefficiencies still remain. Second, an increase in the initial value of the resource may lower the utility of all users. The model develop a nuanced view on Ostrom conjecture stating that conservation is harder to implement than sharing.

Suggested Citation

  • François Libois, 2016. "Success and Failure of Communities Managing Natural Resources:Static and Dynamic Inefficiencies," Working Papers 1601, University of Namur, Department of Economics.
    • Handle: RePEc:nam:wpaper:1601
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    File URL: http://www.unamur.be/eco/economie/recherche/wpseries/wp/1601.pdf
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    Cited by:

    1. François Libois & Jean-Marie Baland & Nicolas Delbart & Subhrendu Pattanayak, 2021. "Community Forest Management: The story behind a success story in Nepal," DeFiPP Working Papers 2106, University of Namur, Development Finance and Public Policies.
    2. Philippe Delacote & Julia Girard & Antoine Leblois, 2019. "Agricultural households' adaptation to weather shocks in Sub-Saharan Africa: What implications for land-use change and deforestation," Working Papers 1902, Chaire Economie du climat.

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    More about this item

    Keywords

    Common-pool resource ; Renewable resource ; Conservation ; Sanctions ; Institutions;
    All these keywords.

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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