Common Property Resource
- Common property resources are (renewable) natural resources where excessive extraction reduces future resource availability and whose use is de facto limited to a particular set of agents, such as village residents or community members.
- For example, consider community-owned forests, coastal fisheries, or water reserves used for irrigation.
- According to conventional economic theory, the overexploitation of a renewable natural resource derives from its shared usage.
- Some publicly held resources are substantially damaged in the real world, but not all of them.
- The various confusing dynamics in the real world make it challenging to pinpoint why community resource management is effective in some situations but not others.
- Therefore, economists utilize economic experiments to assess the efficacy of different institutions, such as penalties, rewards, and communication, in sustaining cooperation in resource usage.
What is a common property resource?
Natural resources known as CPRs are communally owned, subject to certain access limits, and ownership rights are not granted to any individual. Other insignificant forest products include fruits, nuts, fiber, medicinal herbs, etc.