Complex property rights and Coasean bargaining in natural resource management

ABSTRACT

This paper contributes to the debate on whether private or common property rights are better for advancing the sustainable management of natural resources. This contest between public and private ownership is often exaggerated, we claim, because in the real world, complex entitlements with varying degrees of privateness/publicness prevail. Property rights belonging to families, companies, clubs, corporations, and communities are simultaneously common to the members/shareholders and private to the entities. We call these entitlements private-common entitlements. When we acknowledge this complexity, it becomes evident that neither private nor common ownership rights are alone responsible for resource depletion. Instead, depletion is caused by freeriding or evading the payment of the full price of natural resources. This invites Coase’s solution to resource allocation. Therefore, the key problem is whether and how Coasean bargaining is employed to allocate ownership over resources threatened by depletion. We contribute to the debate by showing that Coase’s approach promotes not only economically efficient but also ecologically sustainable resource management. Often, this approach would lead to the establishment of largely private property or control rights by largely collective/public entities. We apply this theoretical framework to the development of a ski resort in Pirin Mountain, Bulgaria.     

Collective Action in the Management of a Tropical Dry Forest Ecosystem: Effects of Mexico’s Property Rights Regime

Dilemmas of natural resources governance have been a central concern for scholars, policy makers, and users. Major debates occur over the implications of property rights for common resources management. After the Mexican Revolution (1910–1917), land was distributed mainly as ejidos conceived as a hereditary but unalienable collective form of property. In 1992, a new Agrarian Law was decreed that allows individual ownership by removing various restrictions over the transfer of land. Scholars have examined the reform mainly focusing on land-tenure changes and environmental fragmentation. This study examines how the new ownership regime is affecting collective decision-making in ejidos located in a tropical dry forest (TDF) ecosystem. Information on decision-making processes before and after the 1992 reform was gathered through 52 interviews conducted in four ejidos selected along a gradient including agricultural, cattle-raising, and TDF use. The new individualized land property system reduced collective action in ejidos but did not trigger it. Collective action responses to the 1992 reform were buffered by self-organization each ejido already had. Heterogeneous users who shared a short history and showed little understanding of TDF and low dependence on its resources seemed to explain why ejidos have not been able to share a sense of community that would shape the construction of institutions for the collective management of forest resources. However, when a resource is scarce and highly valuable such as water the same users showed capacities for undertaking costly co-operative activities.     

Carrots and Sticks: New Brunswick and Maine Forest Landowner Perceptions Toward Incentives and Regulations

The governments of countries that allow private land ownership have two main tools to motivate landowner behavior: regulations and incentives. This research examines landowner preferences toward these policy tools and asks specifically: Do private forest landowners in New Brunswick and Maine believe that regulations and/or incentives are effective means to motivate responsible stewardship? Can landowners identify explicit regulations and policies that restrict property rights? Also, we were interested to see if any discernible differences existed between these adjacent jurisdictions from different countries, but that share similar forests and a similar settlement history. We identified and interviewed diverse landowners, recorded and transcribed our discussions, and analyzed the results using a grounded theory approach. Findings suggest that both New Brunswick and Maine participants are fairly comfortable with most regulations and many agreed that a combination of incentives and regulations are in fact useful. Furthermore, landowners in New Brunswick discussed non-monetary incentives as a mechanism to reward “good” stewardship; while Maine respondents articulated a degree of responsible stewardship that transcends a need to incentivize landowners. This study demonstrates that diverse landowners may be more comfortable with environmental regulations than previously understood and may be interested in non-monetary incentives.     

国有自然资源资产管理体制改革的建议与思考

自然资源产权管理和专业监管的分立可充分发挥市场作用,进一步促进简政放权,实现对山水林田湖草的综合管理,克服监管盲点,提升综合保护绩效,促进绿水青山转化为金山银山。设立专门机构开展自然资源资产管理,《生态文明体制改革总体方案》等规定了改革依据;自然资源统一确权登记试点取得积极进展,奠定了工作基础;与自然资源资产负债表、绿色GDP核算、生态文明建设目标评价考核等结合起来,促进改革的系统化和连贯化;建议在国家和省、市成立三级国有自然资源资产管理机构,在部分区域和流域派驻机构。为保障改革的实施,需界定国有自然资源资产的范围及所有权、监管权的角色和权限;改革生态补偿、排污权有偿使用、资源有偿利用等制度;明晰流域与属地的权力(利)关系;明确自然资源资产管理职责和生态环保党政同责的关系;重构环境保护税、资源税和自然资源资产使用费的关系;规定自然资源资产管理的原则、体制、制度和责任;建立自然资源资产清单、权利清单和管理信息平台;厘清各方权利边界和监管边界,建立评价考核和奖惩机制。     

Private Property Rights and Selective Private Forest Conservation: Could a Nordic Hybrid Policy Address a United States Problem?

Political and legal conflicts between the need for targeted private forest conservation and the continued assurance of private property rights in the U.S. presents a seemingly intractable resource management problem. Scandinavian use of habitat protection areas on private forests offers an additional tool that may be suitable for solving the historical and on-going tension found within U.S. efforts to reconcile desires to maintain lands in a forested condition while also respecting private property rights. This article presents a comparative cross-sectional policy analysis of Sweden, Finland, and the U.S., supported with a supplemental case example from the Commonwealth of Virginia. Similarities in all three countries among forest ownership patterns, use of public subsidies, and changing attitudes towards conservation are generally encouraging. Additionally, Virginia’s current consideration and development of state-wide forest policies focused on forestland and open space conservation suggests both a need and an opportunity to systematically assess the applicability of the Nordic forest reserve approach to local private forest conservation. Future research at a high-resolution, and specifically at the state level, should focus on the social and political factors that would ultimately determine the viability of a forest reserve program.     

Tackling the issue of rural–urban water transfers in the Ta'iz region, Yemen

The Ta'iz region of Yemen is facing serious water problems. Total water use has become unsustainable. While agriculture places a heavy demand on the region's water resources, supplies for the fast growing city and the industrial sector are severely rationed despite their much higher willingness-to-pay for water relative to the returns on most agricultural uses. The article considers several decentralized management options for enhancing sustainability and improving intersectoral water allocation. These include, taxing groundwater extractions, taxing inputs used in pumping groundwater, and implementing a tradable water rights regime. The first two options could lead to resource conservation but are politically difficult to implement and may not necessarily result in better intersectoral water allocation. The tradable water rights regime has potential for achieving the twin objectives of resource conservation and improved intersectoral resource allocation. If farmers' de facto water rights were legitimized, this option would be more acceptable to them. However, the following additional conditions need to be met for making the option viable: (a) a set-aside allocation is made for lifeline supplies for the poor; ( b) the water law provides for separation of water rights from land rights; and (c) community organizations are involved as co-managers of the region's water resources.     

Scarcity of natural resources and the implications for sustainable development

The idea of sustainable development has much popular appeal, but conflicts with centuries of economic theory about how limited land and natural resources constrain the growth of economies and populations. Much of that doctrine, especially that in the Malthusian tradition, is contradicted by historical experience, but the modern threat of environmental degradation raises new questions about whether growth can be sustained. Many of those new problems result from biases in economic organization and institutions against so-called environmental resources. Marketed resource commodities like minerals and timber are protected by the incentives of owners and suppliers to conserve them, enhance them and find new sources, and by the incentives of users to economize on their demands and find cheaper substitutes. Together, these forces have been sufficient to offset depletion and render resources less scarce over time. The same forces are not at work on environmental resources like water and air, so they are over-used and degraded as demands grow. However, promising opportunities exist to develop property rights and economic incentives to encourage users of environmental resources to protect and husband them, and these are likely to be more effective in harmonizing economic activity with the environment than purely regulatory policies.     

Attitudes towards current and alternative management of the Sundarbans Mangrove Forest,Bangladesh to achieve sustainability

This paper examines the challenges of achieving sustainable management of the world's largest mangrove forest, the Sundarbans (SMF) in Bangladesh. During the past two decades, conflicts between mangrove maintenance and the pressure to provide economic livelihoods to forest-dependent communities (FDCs) have emerged and persisted. The SMF is currently managed by the Bangladesh Forest Department (BFD) under a state property rights regime. This study explores an alternative property rights regime which includes participatory approaches and co-management with FDCs to achieve sustainability, both economically and environmentally. Focus group discussions and a survey were the methods used to assess the prospects. The study finds that the absence of a management partnership between the BFD and FDCs is mainly responsible for the policy failures to achieve sustainable management of the SMF. However, evidence is presented that a ‘co-management’ property rights regime cannot be established until FDC capacity is enhanced through the formation of community level institutions.     

TRANSITIONS IN MIDWESTERN GROUND WATER LAW1

ABSTRACT: The evolution of ground-water law in eight states in the Midwest (Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Ohio, and Wisconsin) is examined, and a review of transitions in ground-water doctrines is presented. Two underlying themes in changing ground-water management are communicated. First, ground-water law is evolving from private property rules of capture based on the absolute ownership doctrines to rules requiring conservation and sharing of ground water as a public resource. Second, in both courts and state legislatures, a proactive role of ground-water management is emerging, again, with an emphasis on sharing. Both of these trends are apparent in the Midwest. In the last decade midwestern states have (1) seen significant shifts in court decisions on ground-water use with greater recognition of the reciprocal or mutually dependent nature of ground-water rights, and (2) seen increased legislative development of comprehensive ground-water management statutes that emphasize the reciprocal liabilities of ground-water use. These trends are examined and ground-water management programs discussed for eight states in the Midwest.     

ADAPTING THE LAW OF WATER MANAGEMENT TO GLOBAL CLIMATE CHANGE AND OTHER HYDROPOLITICAL STRESSES1

ABSTRACT: Existing legal regimes for the management of water resources are already stressed by changing technologies and growing populations. There is little reason for doubt that today the planet is undergoing significant and even alarming climate change. In the past such global climatic changes had dramatic effects on water resource availability with disastrous consequences for many human communities. Today's climate changes can be managed without such disastrous consequences for present day communities only if there are major reforms to existing water law regimes at the local, national, and international levels. In particular, at the local and national levels, water resources must be treated as public property rather than as common or private property. At the international level, water must be managed at the drainage basin level rather than according to national boundaries that largely ignore rational water management criteria. At all levels, care must be given to decentralizing decision making and to use economic incentives insofar as possible, without, however, mistaking economic incentives for markets. The public nature of water resources precludes true markets as a significant management tool.     

Property rights integrity,tenure security and forestland rental market participation: Evidence from Jiangxi Province,China

The decentralization of property rights is the focus of the forest tenure reforms in several developing countries. In China, it was achieved by the launch of a new round of collective forest tenure reform beginning in 2003, which provided farmers with more integrated and secure forestland rights. Drawing on household data collected in Jiangxi province in 2011 and 2013, this paper examines the impacts of households’ recognition of property rights and improved tenure security on forestland rental activities. Our empirical results show that households with higher perceptions of more complete use rights and mortgage rights have a lower probability and intensity of renting‐in land, while households with lower expectations of future forestland redistribution or expropriation are more likely to rent in forestland and more of it. These results imply that the development of a forestland rental market leading to better forest management requires an integrated forestland management approach consisting of decentralization of property rights and village governance. In particular, the central government may further clarify the rights and obligations affiliated to forestland ownership, contractual rights, and management rights; while the village collective may shift from direct intervention in the integrity and security of forestland rights to the supervision and protection of decentralized forestland rights to increase efficiency from the decentralization of property rights.     

Environmental and Strategic Uncertainty in Common Property Management: The Case of Scottish Red Deer

The range of red deer populations in the Scottish Highlands can cover several different landholdings (estates), many of which derive their income primarily from the private hunting (stalking) of stags. The deer belong to nobody and their seasonal movement does not respect the boundaries of individual estates, but a 'rule of capture' does apply as, once shot, the deer become the property of the estate owner. This paper argues that deer populations would best be managed as a common property resource. Indeed, for this reason, the Deer Commission for Scotland has encouraged owners to form Deer Management Groups. These groups are now able to utilize a computer program that models the relationship between grazing quality and population dynamics. However, drawing upon examples from the Western Highlands, the paper finds that common property management must overcome incentives to behave strategically that arise from the characteristics of flow and storage of the resource. The problem is aggravated by the degradation of the habitat that has occurred over centuries. This often means that the resource is below its optimum in terms of stag numbers and quality. Scientific models are an important contribution, but only reduce the environmental uncertainty. Their full potential can only be realized if all landowners are obliged to actively engage in common property management.     

Taxing virgin natural resources: Lessons from aggregates taxation in Europe

The objective of this review paper is to analyze the efficiency of environmentally motivated taxes on virgin raw materials. We analyze both the economic-theoretical foundations of virgin natural resource taxation, and the empirical experiences of aggregates taxes i.e., taxes on, for instance, gravel, rock, stone, etc. in three European countries. These include Sweden, Denmark and the United Kingdom. The theoretical analysis indicates that taxing natural resource output or use typically represents a ‘second-best’ policy alternative, which can be used when, for instance, the monitoring of non-point source emissions is difficult or efficient property rights regimes cannot be established. The empirical analysis shows that the European aggregate taxes have assisted in reducing virgin resource use in spite of the relatively low own-price responses. However, generators of recycled materials typically have few incentives to enhance their waste sorting activities in the presence of a tax on virgin materials. Unless additional policies to increase the supply of recycled materials are implemented, supply will not increase much even in the presence of high demand. Finally, although second-best taxes are sometimes motivated by the desire to keep administration costs low, they could come at the cost of improper incentives and of limited policy legitimacy.     

PRIVATIZING THE GROUND WATER RESOURCE: INDIVIDUAL USE AND ALTERNATIVE SPECIFICATIONS1

ABSTRACT: While most inquiries into improving the efficiency of ground water allocation have focused upon various schemes involving centralized management, recently the focus has shifted towards exploring private property solutions to these problems. However, most of these studies, when modeling ground water use, have equated behavior under private property to that under common property conditions. This leads to the possibly mistaken conclusion that private property rights do not promote more efficient ground water use, because these models assume that producers ignore the future effects of current pumping. This paper attempts to correct this deficiency by formally modeling ground water use under common property, central management, and private property scenarios. Moreover, there are many ways that property rights can be defined over ground water, some establishing more exclusivity over the resource than others. Four specifications of property rights are analyzed for their likely effects on allocative efficiency: full stock-flow, partial stock-flow, limited stock-flow, and pure flow rights.     

生态文明产权制度的界定、分类及框架研究

生态文明产权制度是生态文明制度体系建设的根基。生态文明产权制度可划分为自然资源产权制度、环境资源产权制度和气候资源产权制度三大类别。自然资源产权制度包含水权、林权、矿权、渔权和能权,环境资源产权制度包含排污权和生态权,气候资源产权制度包含碳排污权和碳汇。在大国责任的国际背景下,生态文明产权可用总量控制是硬性约束,必须以自然、环境和气候资源的产权总量控制为前提,确保全国总体生态水平在可预见的时间达到可控制的范围之内。有效地推进自然、环境和气候资源的初始产权界定,运用生态文明产权价格机制促进生态文明产权交易,并运用生态文明产权保护制度确保初始产权界定、产权交易机制和产权价格机制的顺利推进和开展。形成以产权总量控制为前提,以初始产权的界定和分配为基础,以产权交易机制为手段,以产权价格机制为核心,以产权保护制度为保障生态文明产权制度框架。     

Prospects for the co‐management of mangrove ecosystems on the North Brazilian coast: Whose rights,whose duties and whose priorities?

This article describes the co‐management approach in situations of open access to and of increasing pressure on resources, using a mangrove coastal zone in North Brazil as an example. Co‐management clearly has the potential to turn nonviable, de facto open access to mangroves into effective common property management. Alliances of different political and ideological groups have been formed under the RESEX (reservas extrativistas — natural resource user reserve) model of coastal co‐management. Local economic interests have been mobilized as client constituencies. The RESEX system of co‐management assigns additional duties to both co‐managing parties, i.e., the state administration and the local users, in exchange for new rights. The authors argue that local support for the RESEX model has been gained on partially distorted premises. As the public authority passes on responsibility for management to local users under the RESEX model, this entails a number of duties for the local users. Thus local users assume the duty to implement and monitor resource management; they also appear to gain the right to take local decisions, such as excluding outsiders from resource access, and designing local resource management rules. However, as this article shows with two examples, some important new rights for local users under the RESEX co‐management concept are contrary to environmental legislation in force. This conflict is at present unresolved. It is argued that increased transparency about their precise rights for local resource co‐managers will considerably improve the prospects of coastal co‐management in Brazil.     

Comparative capitalism and sustainable development: Stakeholder capitalism and co-management in the Kenyan fisheries sub sector

This paper argues that stakeholder capitalism is more appropriate to natural resource management and rural development in Africa than other varieties of capitalism. It examines different management arrangements in Kenyan Lake Victoria fisheries resources to argue that whilst stakeholder capitalism is still far from being the mainstream model of capitalism in Kenya, theoretically and empirically, it is more appropriate to sustainable development than the Anglo‐Saxon variety of capitalism that the country inherited from its British colonizers. The paper demonstrates that the concepts of ownership and management rights are social, economic and political constructs that are continuously contested, with huge implications for sustainable development and natural resource management.     

Shellfish aquaculture and First Nations' sovereignty: The quest for sustainable development in contested sea space

Aquaculture tenures or leases have become an increasingly important management tool for regulating access rights to coastal and offshore marine habitat. Tenure, as a form of private property rights to marine space, is generally considered a prerequisite for aquaculture development, as are the associated exclusive access rights which provide necessary incentives for producers to invest in infrastructure. The shellfish industry in British Columbia (BC), Canada, is presented as a case study of a transition from a primarily common property wild fishery to a rights‐based system for aquaculture. In BC, seafood production has grown substantially during the past two decades as a result of aquaculture production. However, despite the inherent economic advantages of the tenuring system for increasing seafood production, rights to aquaculture sites in BC remain highly controversial, particularly in response to environmental concerns and infringements on Aboriginal territorial claims. Shellfish farming has, to‐date, been far less controversial than salmon farming; however, shellfish aquaculture has not been uniformly adopted across the province, and analyses of industry capacity or economic opportunities for coastal communities have failed to adequately explain development patterns. This paper, which identifies perceptions of the risks and benefits of the shellfish aquaculture tenuring system, presents the results of 56 interviews conducted with individuals involved in shellfish production in BC. Results indicate that heightened perceptions of risk about shellfish aquaculture tenuring are related to unresolved Aboriginal territorial claims, economic dependence on wild shellfish resources, as well as place‐based values favouring access to wild resources. Underlying values and cultural understandings also strongly shape public perceptions of the risks of aquaculture, and as such, influence local decisions to either accept or resist industry growth. In this case, interviewees' risk perceptions were found to be more important indicators of the potential for industry expansion than studies of capacity or economic cost‐benefit analyses.     

Nature of property rights and motivation for blue growth: An empirical evidence from the fisheries industry

If unauthorized resource use is prevented, managing marine resources by allocating property rights may match economic and environmental conservation incentives. However, because of the developing exploitation of marine resources and accompanying pollution, species' living conditions in Europe's waters are changing more quickly than before. By considering the roles of fisheries productivity, intellectual property rights, intellectual capital rights, market size, governance, and economic growth from 1990 to 2022, this paper aims to investigate the dynamic effect of property rights factors on the sustainability of the fisheries industry in 27 European countries. At higher quantiles, the findings showed a significant positive association between governance and fisheries sustainability adopting a new method, the MMQR with fixed effects, the Method of Moments Quantile Regression. In addition, in EU27 nations, the impact of intellectual property rights was favorable and statistically significant from the first to ninth quantiles. The findings show that the EU14 developed nations have more excellent governance and intellectual capital rights than the EU13 developing countries, significantly benefiting fisheries sustainability. In the same way that market size and economic growth condense fisheries sustainability in EU14 developed and EU13 developing countries, it has been discovered that intellectual property rights do the same across all quantiles, supporting the growth hypothesis for fisheries-producing countries. The findings specifically show that the beneficial solid impact of intellectual property rights, market size, and economic development on the sustainability of fisheries is more significant in EU13 developing nations than in EU14 developed countries. These results provide policymakers with helpful information for promoting property rights aspects in EU14 and EU13 nations via effective green technologies in the fisheries sector to meet sustainable development objectives.     

CONFLICT ANALYSIS AND MANAGEMENT ALTERNATWE FOR THE MANAYLJNK CANAL1

ABSTRACT: The solution of a water resource allocation problem by an alternative social arrangement is presented. Classical Austrian economic theory and the “new resources economics” provide both theoretical and practical evidence to support the development of well-defined, private property rights to the water resource in question. A conflict analysis demonstrates that management of the Manayunk Canal by a firm would reconcile existing confrontations through compromise use of the water resource. Benefit and cost calculations show that a compromise among industrial and recreational interests, currently competing in the political arena, would increase social benefits.