The Use of Common Property Resources: A Dynamic Model
Data
01.01.2002
01.01.2002
Autori
Michele Moretto, Paolo Rosato
Parole chiave:
Common property resources,option value,uncertainty
Common property resources,option value,uncertainty
Publisher
Climate Change and Sustainable Development
Climate Change and Sustainable Development
Editor
Carlo Carraro
Carlo Carraro
JOURNAL
Atti del XXXI Incontro di Studio Ce.S.E.T., Sassari
Atti del XXXI Incontro di Studio Ce.S.E.T., Sassari
The government of common agricultural and forestry land is a topic that is currently enjoying a revival of interest. Many local communities have shown the ability to pursue sustainable use of natural resources thanks to their self-governed authorities. In this context the relationship between public and private interest which is established in use of the resource is a fairly controversial. The paper proposes a dynamic model to analyse the behaviour of a user of a common property resource in a “real option” framework, where the value of the right to use the resource is affected by: 1) uncertainty on the future amount of the resource; 2) entry and exit costs and 3) the number of users competitors.