The Economics of Common Pool Resources
Keywords:Common Pool Resources, Institutions, Collective Action, Resource Users, Economics
The paper analyses open access and common property resource systems drawing insights from new institutional economics, especially property rights theory and policy analysis. This analysis of common pool resources (CPRs) under common property regimes indicates that local communities devise formal and informal institutions in managing the local commons. The paper further discusses how N. S. Jodha’s empirical work on the economics of CPRs has enhanced our understanding of the role of CPRs in the livelihood strategies of the poor in the developing world. Devolution of authority to local resource users is emphasized as an institutional imperative in designing appropriate forms of governance structures for CPR management.
Adhikari, B. 2005. “Poverty, Property Rights and Collective Action: Understanding the Distributive Aspects of Common Property Resource Management.” Environment and Development Economics 10: 7–31. https://doi.org/10.1017/S1355770X04001755
Adhikari, B. 2008. “Is Cooperation Costly with Diverse Economic Agents?” In Promise, Trust and Evolution: Managing Commons in South Asia, edited by N. S. Jodha, R. Ghate, and P. Mukhopadhyay, 238-259. New York: Oxford University Press. https://doi.org/10.1093/acprof:oso/9780199213832.003.0011
Adhikari, B., S. Di Falco, and J. C. Lovett. 2004. “Household Characteristics and Forest Dependency: Evidence from Community-based Forest Management in Nepal.” Ecological Economics 48 (2): 245–57. https://doi.org/10.1016/j.ecolecon.2003.08.008
Agrawal, A. 2001. “Commons Property Institutions and Sustainable Governance of Resources.” World Development 29 (10): 1649–72. https://doi.org/10.1016/S0305-750X(01)00063-8
Agrawal, A., and C. C. Gibson. 1999. “Enchantment and Disenchantment: The Role of Community in Natural Resource Conservation.” World Development 27 (4): 629–649. https://doi.org/10.1016/S0305-750X(98)00161-2
Appasamy, P. P., and A. Menon. “Institutional Failure and Co-management of Forest Resources in the Nilgiris, Tamil Nadu, India.” Research proposal presented at the SANDEE Research Seminar, Dhulikhel, Nepal, 19–22 September 2000.
Baland, J., and J. Platteau. 1996. Halting Degradation of Natural Resources: Is there a Role of Rural Communities? New York: Oxford University Press.
Baland, J., and J. P Platteau. 1999. “The Ambiguous Impact of Inequality on Local Resource Management.” World Development 27 (5): 773–788. https://doi.org/10.1016/S0305-750X(99)00026-1
Bardhan, P. 1993. “Symposium on Management of Local Commons.” Journal of Economic Perspectives 7 (4): 87–92. https://doi.org/10.1257/jep.7.4.87
Bardhan, P., and J. Dayton-Johnson. 2000. “Heterogeneity and Commons Management.” Berkeley, USA: Department of Economics, University of California.
Beck, T., and C. Nesmith. 2001. “Building on Poor People’s Capacities: The Case of Common Property Resources in India and West Africa.” World Development 29 (1): 119–33. https://doi.org/10.1016/S0305-750X(00)00089-9
Berkes, F., ed. 1989. Common Property Resources: Ecology and Community Based Sustainable Development. London: Belhaven Press.
Berkes, F., and C. Folke. 1998. “Linking Social and Ecological System for Resilience and Sustainability.” In Linking Social and Ecological System: Management Practices and Social Mechanisms for Building Resilience, edited by F. Berkes and C. Folke. New York, NY,: Cambridge University Press.
Branney P., and K. P. Yadav. 1998. “Changes in Community Forests Condition and Management 1994-1998: Analysis of Information from the Forest Resource Assessment Study and Socio-economic Study in the Koshi Hills.” Project Report G/NUKCFP/32. Nepal UK Community Forestry Programme (NUKCFP), Kathmandu.
Bromley, D. W., and M. M. Cernea. 1989. “The Management of Common Property Resources: Some Conceptual and Operational Fallacies.” Washington, D.C.: The World Bank.
Chambers, R. “Poverty and Livelihoods: Whose Reality Counts?” Paper prepared for the Stockholm Roundtable on Global Change, 22-24 July, 1994. Institute of Development Studies University of Sussex Brighton BNl 9RE, England
Chopra, K., G. Kadekodi, and M. Murthy. 1990. Participatory Development: People and Common Property Resources. Delhi: Sage Publications.
Chopra, K., and P. Dasgupta. “Common Pool Resources and the Development Process: Evidence from India”. Paper presented at the 9th Biennial Conference of International Association for the Study of Common Property, Victoria Falls, Zimbabwe, 17–21 June 2002.
Cooke, P. A. 2000. “Changes in Intrahousehold Labor Allocation to Environmental Goods Collection: A Case Study from Rural Nepal, 1982 and 1997.” Washington, D.C.: International Food Policy Research Institute.
Costanza, R. 2003. “Social Goals and the Valuation of Natural Capital.” Environmental Monitoring and Assessment 86: 19–28. https://doi.org/10.1023/A:1024045221992
Cox, M., G. Arnold and S. V. Tomás. 2010. “A Review of Design Principles for Community-Based Natural Resource Management”. Ecology and Society 15(4): 38. https://doi.org/10.5751/ES-03704-150438
Daly, H. E., and J. B. Cobb. 1989. For the Common Good. Boston: Beacon Press.
Das, J. 2000. “Institutions and Incentives in a Garhwal Village – I: Common Property Regimes in Traditional Societies.” Economic & Political Weekly 35 (49): 4337-44.
Dasgupta, P. 2008. “Common Property Resources: Economic Analytics.” In Promise, Trust and Evolution: Managing Commons in South Asia, edited by N. S. Jodha, R. Ghate, and P. Mukhopadhyay, 19–50. New York: Oxford University Press. https://doi.org/10.1093/acprof:oso/9780199213832.003.0002
Davies, J., and M. Richards. 1999. “The Use of Economics to Assess Stakeholders Incentives in Participatory Forest Management: A Review.” London: Overseas Development Institute.
Dearden, P., M. Carter, R. Kowalski, and M. Surridge. 1999. “ICITRAP: An Experimental Training Exercise for Examining Participatory Approaches to Project Management.” Public Administration and Development 19: 93–104. https://doi.org/10.1002/(SICI)1099-162X(199902)19:1<93::AID-PAD57>3.0.CO;2-0
Demsetz, H. 1964. “The Exchange and Enforcement of Property Rights.” Journal of Law and Economics 70 (4): 414–30. https://doi.org/10.1086/466596
Demsetz, H. 1967. “Towards a Theory of Property Rights.” American Economic Review 52 (92): 347–379.
Ghate, R. 2008. “A Tale of Three Villages: Practised Forestry in India.” In Promise, Trust and Evolution: Managing Commons in South Asia, edited by N. S. Jodha, R. Ghate, and P. Mukhopadhyay, 122–143. New York: Oxford University Press. https://doi.org/10.1093/acprof:oso/9780199213832.003.0006
Gibbs, J. N., and D. W. Bromley. 1989. “Institutional Arrangements for Management of Rural Resources: Common Property Regimes.” In Common Property Resources: Ecology and Community-Based Sustainable Development, edited by F. Berkes, 22–32. London: Belhaven Press.
Gordon, H. S. 1954. “The Economic Theory of a Common Pool Resource: The Fishery.” Journal of Political Economy 62: 124–42. https://doi.org/10.1086/257497
Hanna, S., C. Folke, and K. Maler. 1995. “Property Rights and Environmental Resources.” In Property Rights and the Environment: Social and Ecological Issues, edited by S. Hanna and M. Munasinghe, 15–21. Washington, D.C.: The Beijer International Institute of Ecological Economics and The World Bank.
Hardin, G. 1968. “The Tragedy of Commons.” Science 162: 1243–48. https://doi.org/10.1126/science.162.3859.1243
Hobley, M., and E. Wollenberg. 1996. “A New Pragmatic Forestry or Another Development Bandwagon?” In Participatory Forestry: The Process of Change in India and Nepal. Rural Development Forestry Study Guide 3, edited by M. Hobley, 243–260. London: ODI.
Jain, L. C. 1988. “Poverty, Environment, Development: A View from Gandhi's Window.” Economic and Political Weekly 23 (7): 311-320.
Jodha, N. S. 1985a. “Population Growth and the Decline of Common Property Resources in Rajasthan.” Population and Development Review 11 (2): 247–64. https://doi.org/10.2307/1973488
Jodha, N. S. 1985b. “Market Force and Erosion of Common Property Resources in the Agricultural Markets in the Semi-arid Tropics.” In Proceedings of the International Workshop at ICRISAT Centre, India.
Jodha, N. S. 1986. “Common Property Resources and the Rural Poor in Dry Regions of India.” Economic and Political Weekly 21 (27): 169–181.
Jodha, N. S. 1990. “Rural Common Property Resources: Contribution and Crisis.” Economic and Political Weekly 25 (26): A65–A78.
Jodha, N. S. 1992. Common Property Resources: A Missing Dimension of Development Strategies. Washington, D.C.: The World Bank.
Jodha, N. S. 1995. “Studying Common Property Resources, Biography of a Research Project.” Economic and Political Weekly 30 (11): 556–559.
Jodha, N. S. 1997. “Management of Common Property Resources in Selected Dry Areas of India.” In Natural Resource Economics: Theory and Application in India, edited by J. M. Kerr, D. K. Marothia, K. Singh, C. Ramasamy, and W. R. Bentley, 341–361. New Delhi: Oxford and IBH Publishing Company Pvt. Ltd.
Jodha, N. S. 2000. “Joint Management of Forests: Small Gains.” Economic & Political Weekly 35 (50).
Jodha, N. S. 2008. “Some Places Again: A ‘Restricted’ Revisit to Dry Regions of India.” In Promise, Trust and Evolution: Managing Commons in South Asia, edited by N. S. Jodha, R. Ghate, and P. Mukhopadhyay, 51–69. New York: Oxford University Press. https://doi.org/10.1093/acprof:oso/9780199213832.003.0003
Kant, S. 2000. “A Dynamic Approach to Forest Regimes in Developing Economies.” Ecological Economics 32: 287–300. https://doi.org/10.1016/S0921-8009(99)00100-7
Malla, Y. B. 2000. “Impact of Community Forestry Policy on Rural Livelihood and Food Security in Nepal.” Unasylva 51: 37–45.
Mabogunje, A. L. 2001. “Poverty and Environmental Degradation: Challenges Within the Global Economy.” Environment: Science and Policy for Sustainable Development 4 (1): 8–19. https://doi.org/10.1080/00139150209605588
Masron, T. A., and Y. Subramaniam. 2019. “Does Poverty Cause Environmental Degradation? Evidence from Developing Countries.” Journal of Poverty 23 (1): 44–64. https://doi.org/10.1080/10875549.2018.1500969
McKean, M. 1992. “Success on the Commons: A Comparative Examination of Institutions for Common Property Resource Management.” Journal of Theoretical Politics 4 (3): 247–81. https://doi.org/10.1177/0951692892004003002
Meinzen-Dick, R., and A. Knox. 1999. “Collective Action, Property Rights and Devolution of Natural Resource Management: A Conceptual Framework.” Paper presented at the International Workshop on Collective Action, Property Rights and Devolution of Natural Resource Management, Exchange of Knowledge and Implications for Policy, Philippines, June 21–25.
Meinzen-Dick, R., K. V. Raju, and A. Gulati. 2000. “What Affects Organization and Collective Action for Managing Resources? Evidence from Canal Irrigation Systems in India.” Washington, D.C.: International Food Policy Research Institute.
Menard, C. 2000. “Enforcement Procedures and Governance Structures: What Relationship?” In Institutions, Contracts and Organizations: Perspectives from New Institutional Economics, edited by C. Menard, 234–253. Cheltenham, United Kingdom: Edward Elgar. https://www.researchgate.net/publication/283560119_Enforcement_procedures_and_governance_structures_What_relationship
Mukhopadhyay, P. 2008. “Heterogeneity, Commons, and Privatization: Agrarian Institutional Change in Goa”. In Promise, Trust and Evolution: Managing Commons in South Asia, edited by N. S. Jodha, R. Ghate, and P. Mukhopadhyay, 213–237. New York: Oxford University Press. https://doi.org/10.1093/acprof:oso/9780199213832.003.0010
Nugent, J. B. 1993. “Between Sate, Markets and Households: A Neo Institutional Analysis of Local Organizations and Institutions.” World Development 21 (4): 623–632. https://doi.org/10.1016/0305-750X(93)90114-O
Oakerson, R. J. 1992. “Analyzing the Commons: A Framework.” In Making the Commons Work: Theory, Practice, and Policy, edited by D. W. Bromley, 41–59. San Francisco: ICS Press.
Olson, M. 1965. The Logic of Collective Action: Public Goods and the Theory of Groups. Cambridge: Harvard University Press.
Ostrom, E. 1990. Governing the Commons. Cambridge: Cambridge University Press. https://doi.org/10.1017/CBO9780511807763
Ostrom, E. 1992. Crafting Institutions for Self-Governing Irrigation Systems. San Francisco: Institute of Contemporary Studies.
Ostrom, E. 1999. “Coping with Tragedies of the Commons.” Annual Review of Political Science 2: 493–535. https://doi.org/10.1146/annurev.polisci.2.1.493
Pearce, D. W., and R. K. Turner. 1990. Economics of Natural and the Environment. Hemel Hempstead: Harvester Wheatsheaf.
Pender, J., and S. J. Scherr. 1999. “Organizational Development and Natural Resource Management: Evidence from Central Honduras.” Washington, D.C.: International Food Policy Research Institute.
Richards, M., K. Kanel, M. Maharjan, and J. Davies. 1999. “Towards Participatory Economic Analysis by Forest User Groups in Nepal.” Overseas Development Institute in collaboration with the Nepal-UK Community Forestry Project, Kathmandu.
Runge, C. F. 1984. “Institutions and Free Rider: The Assurance Problem in Collective Action.” Journal of Politics 46: 154–189. https://doi.org/10.2307/2130438
Runge, C. F. 1986. “Common Property and Collective Action in Economic Development.” World Development 14 (5): 623–635. https://doi.org/10.1016/0305-750X(86)90128-2
Saxena, N. C. 2000. “Participatory Issues in Joint Forest Management in India”. Wasteland News, November–January.
Scott, A. 1955. “The Fishery: The Objectives of Sole Ownership.” Journal of Political Economy 63: 116–124. https://doi.org/10.1086/257653
Sekher, M. 2001. “Organized Participatory Resource Management: Insights from Community Forestry Practices in India.” Forest Policy and Economics 3: 137–154. https://doi.org/10.1016/S1389-9341(01)00060-0
Shyamsundar, P. 2008. “Decentralization, Devolution, and Collective Action: A Review of International Experience.” In Promise, Trust and Evolution: Managing Commons in South Asia, edited by N. S. Jodha, R. Ghate, and P. Mukhopadhyay, 70–96. New York: Oxford University Press. https://doi.org/10.1093/acprof:oso/9780199213832.003.0004
Somanathan, E., R. Prabhakar, and B. S. Mehta. 2002. “Collective Action for Forest Conservation: Does Heterogeneity Matter?” New Delhi: Mimeo, Indian Statistical Institute.
Soussan, J., O. Springate-Baginski, J. G. Dev, O. P. Yadav, and N. P. Kiff. 1998. “Community Forestry in Nepal: Progress Report on a DFID-funded Research Project.” Kathmandu, Nepal: Nepal–UK Community Forestry Programme.
Tang, S. Y. 1992. Institutions and Collective Action: Self-Governing in Irrigation Systems. San Francisco: ICS Press.
Uphoff, N. 1993. “Grassroots Organization and NGOs in Rural Development: Opportunities with Diminishing States and Expanding Markets.” World Development 21 (4): 607–22. https://doi.org/10.1016/0305-750X(93)90113-N
Varughese, J., and E. Ostrom. 2001. “The Contested Role of Heterogeneity in Collective Action: Some Evidence from Community Forestry in Nepal.” World Development 29 (5): 747–765. https://doi.org/10.1016/S0305-750X(01)00012-2
Wade, R. 1988. Village Republics: Economic Conditions for Collective Action in South India. Cambridge: Cambridge University Press.
Wallace, M. B. 1981. “Solving Common-property Resource Problem: Deforestation in Nepal.” Unpublished PhD Dissertation, Harvard University, Cambridge, Massachusetts.
World Bank. 1996. The World Bank Participation Sourcebook. Washington, D.C.: The World Bank.
Zak, P. J., and S. Knack. 2001. “Trust and Growth.” The Economic Journal 111 (470): 295–321. https://doi.org/10.1111/1468-0297.00609
Copyright (c) 2021 Bhim Adhikari
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The author(s) retain copyright on work published by INSEE unless specified otherwise.
Licensing and publishing rights
Author(s) of work published by INSEE are required to transfer non-exclusive publishing right to INSEE of the definitive work in any format, language and medium, for any lawful purpose.
Authors who publish in Ecology, Economy and Society will release their articles under the Creative Commons Attribution NonCommercial 4.0 International (CC BY-NC 4.0) license. This license allows anyone to copy and distribute the article for non-commercial purposes provided that appropriate attribution is given.
For details of the rights that the authors grant users of their work, see the "human-readable summary" of the license, with a link to the full license. (Note that "you" refers to a user, not an author, in the summary.)
The authors retain the non-exclusive right to do anything they wish with the published article(s), provided attribution is given to the Ecology, Economy and Society—the INSEE Journal with details of the original publication, as set out in the official citation of the article published in the journal. The retained right specifically includes the right to post the article on the authors’ or their institution’s websites or in institutional repositories.
In case of re-publishing a previously published work, author may note that earlier publication may have taken place a license different from Creative Commons. In all such cases of re-publishing, we advise the authors to consult the applicable licence at article level.