We analyze theoretically an institution called a “limited-tenure concession” for its ability to induce efficient public goods contribution and common-pool resource extraction. The basic idea is that by limiting the tenure over which an agent can enjoy the public good, but offering the possibility of renewal contingent on ample private provision of that good, efficient provision may be induced. We first show in a simple repeated game setting that limited-tenure concessions can incentivize socially-efficient provision of public goods. We then analyze the ability of this instrument to incentivize the first best provision for common-pool natural resources such as fish and water, thus accounting for spatial connectivity and growth dynamics of the resource. The duration of tenure and the dispersal of the resource play pivotal roles in whether this limited-tenure concession induces the socially optimal private provision. Finally, in a setting with costly monitoring, we discuss the features of a concession contract that ensure first-best behavior, but at least cost to the implementing agency.

We compare how the long-run distribution of fishing activities is affected in multispecies fisheries when facing different second-best control rules: (1) species-specific landing regulation, and (2) global input regulation. We show how this depends on the economic returns and on the type of ecological interaction considered. We highlight specifically that fishing effort does not necessarily increase on nontargeted species and decrease on targeted species, and that the characterization of second-best efficient instruments may differ drastically depending on the nature of the interaction.

We consider analytically the non-cooperative behavior of many private property owners who each controls the stock of a public bad, which can grow and spread across spatial areas. We characterize the conditions under which private property owners will control or eradicate, and determine how this decision depends on property-specific environmental features and on the behavior of other landowners. We show that high mobility or lower control by others result in lower private control. But when the marginal dynamic cost of the bad is sufficiently large, we find that global eradication may be privately optimal in these cases, eradication arises in the non-cooperative game and is also socially optimal so there is, in effect, no externality. (C) 2017 Elsevier B.V. All rights reserved.

This paper studies groundwater management in the presence of rainwater harvesting (RWH). We propose a two-state model that takes into account the dynamics of the aquifer and the standard dynamics of the storage capacity, and we assume that the collection of rainwater reduces the natural recharge. We analyze the trade-off between these two water harvesting techniques in an optimal control model. In particular, we show that, when these techniques are perfect substitutes, the development of RWH leads in the long run to a depletion of the water table, even if pumping is reduced. This result is illustrated by a numerical application for the Pecos River Basin (New Mexico, USA). JEL: Q25, C61, D61. / KEY WORDS: Rainwater Harvesting, Conjunctive Use, Groundwater Management, Optimal Control.