@techreport{NBERw16338,
 title = "Unitization of spatially connected renewable resources",
 author = "Daniel T. Kaffine and Christopher J. Costello",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "16338",
 year = "2010",
 month = "September",
 URL = "http://www.nber.org/papers/w16338",
 abstract = {Spatial connectivity of renewable resources induces a spatial externality in extraction. We explore the consequences of decentralized spatial property rights in the presence of spatial externalities. We generalize the notion of unitization - developed to enhance cooperative extraction of oil and gas fields - and apply it to renewable resources which face a similar spatial commons problem. We find that unitizing a common pool renewable resource can yield first-best outcomes even when participation is voluntary, provided profit sharing rules can vary by participant.},
}