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  • When is increasing consumption of common property optimal? sorting, congestion and entry in the commons.

    Author(s) : Hughes, J. E.Kaffine, D.

    Author Affiliation : Department of Economics, University of Colorado at Boulder, Box 0256 UCB, Boulder, CO 80309, USA.

    Author Email : jonathan.e.hughes@colorado.edu

    Journal article : Journal of Environmental Economics and Management 2017 Vol.81 pp.227-242

    Abstract : First-best pricing or assignment of property rights for rival and non-excludable goods is often infeasible. In a setting where the social planner cannot limit total use, we show that common-property resources can be over or under-consumed. This depends on whether the external benefits of reallocating users to less congested resources outweigh the additional costs imposed by new entrants. Importantly, we show that it may be optimal to encourage consumption of some common property resources. Our results have important implications for settings ranging from fisheries and forestry to recreational demand and transportation.

    ISSN : 0095-0696

    URL : http://www.sciencedirect.com/science/...

    Record Number : 20173012528

    Publisher : Elsevier Inc

    Location of publication : Orlando

    Country of publication : USA

    Language of text : English

    Language of summary : English

    Indexing terms for this abstract:

    Descriptor(s) : consumption, demand, externalities, fisheries, forestry, land resources, land use, property rights, public domain, recreation, resource allocation, transport

    Identifier(s) : transportation