Unitization of spatially connected renewable resources
Daniel Kaffine and
Christopher Costello
No 16338, NBER Working Papers from National Bureau of Economic Research, Inc
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.
JEL-codes: Q22 (search for similar items in EconPapers)
Date: 2010-09
Note: EEE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)
Published as 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.
Downloads: (external link)
http://www.nber.org/papers/w16338.pdf (application/pdf)
Related works:
Journal Article: Unitization of Spatially Connected Renewable Resources (2011) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:16338
Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w16338
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().