Property Rights Flashcards
De jure
Rights granted by the state
De facto
Customary law
Property right
Gives ownership of resource
Rule of first possession
Absent of formalized property rights, the first person to get to the resource gets to have it
Usufruct right
Use right
A use right can pertain to:
- Utilization of a resource
- Access to the resource
Main characteristics of property rights
- Universality
- Exclusivity
- Durability
- Transferability
- Divisibility
- Security
Universality
The right encompasses all assets being either privately or collectively owned. All entitlements are specified & enforced. (Increases economic efficiency & conservation)
Exclusivity
All benefits and costs of resource use accrue to the owner (Increases economic efficiency & conservation)
Durability
Length of the entitlement (increases economic efficiency & conservation)
Transferability
Resource is transferable from one owner to another in voluntary exchange (Increases economic efficiency, increase OR decrease conservation)
Divisibility
Ability of owner to divide up asset or flow of benefits from the asset (Increases economic efficiency, increases OR decreases conservation)
Security
Property rights secure from seizure or encroachment by others (Increases economic efficiency, increases OR decreases conservation)
Types of property rights
- Private
- State
- Common
- Hybrid
- Open access
Incentives from private property right
Strong incentive for conservation & investment
Incentives for state property
Encourages reduction/ limitation of individual rights, managers have incentives for personal gain
Incentives from common property
Free riding problem, low incentives for conservation
Incentives from open access
Lack of incentives to conserve, can lead to resource degradation
Exclusivity continuum
Increasing exclusive use, increasing #s excluded:
Open access, state property, common property, private property
Regulated common property
-Group must control access to the resource & it’s use by group members.
-implies rules can be effectively inforced
-can give same economic efficiency as private property
Unregulated common property
-access rules exist, but no rules of membership or use
-leads to economic inefficiency
Types of fishing rights
- Limited entry
- Fishing cooperative
- TURFS
- ITQs
- ITEs
- Community quotas
- State property
- High seas
Limited entry
Limit access to resource stock for specific # of users who hold license or permit
-it is a right to access
-weak right because:
Only right to access fish stock not specific # of fish & weak incentives for optimal resource use
Fishing cooperatives
Decentralized group management that allocates use right among fishers in cooperative
-typically a form of Total allowable catch (TAC) that is shared among members
-strength of incentives for optimal use dependent on strength of agreement
