Copyright © 2012 by the author(s). Published here under license by the Resilience Alliance.
Gilmour, P. W., R. W. Day, and P. D. Dwyer. 2012. Using private rights to manage natural resources: is
stewardship linked to ownership? Ecology and Society 17(3): 1.
http://dx.doi.org/10.5751/ES-04770-170301
Research
Using Private Rights to Manage Natural Resources: Is Stewardship
Linked to Ownership?
Patrick W. Gilmour
1
, Robert W. Day
1
, and Peter D. Dwyer
2
ABSTRACT. There is increasing interest in privatizing natural resource systems to promote sustainability and conservation
goals. Though economic theory suggests owners of private property rights have an incentive to act as resource stewards, few
studies have tested this empirically. This paper asks whether private rights-owners were more conservative with respect to their
management opinions than nonrights-owners in five Australian abalone (Haliotis spp.) fisheries. Multiple regression analyses
were used to link opinions to demographic, economic, and attitudinal variables. In contrast to standard economic assumptions,
nonrights-owners suggested more conservative catch limits than did rights-owners, confirming qualitative observations of
behavior in management workshops. Differing views about the condition of the resource and differing levels of experience
contributed to these results. The first of its kind, this study directly demonstrates that private rights do not necessarily promote
the greatest level of stewardship. This has substantial implications for how natural resources are governed globally, but also
warns against applying simplistic behavioral assumptions to complex social-ecological systems.
Key Words: Australia, comanagement, fisheries, individual transferable quota, property rights, stewardship, sustainable
behavior
INTRODUCTION
Resource economists have long argued that privatization of
natural resources, such as forests, fisheries, and rangelands,
promotes economic efficiency (Gordon 1954, Chueng 1970,
Johnson 1972). More recently, private rights have been
advocated explicitly as a means of improving environmental
goals (Gibson et al. 2002, Fujita and Bonzon 2005, Helson et
al. 2010). The conventional wisdom is that, by internalizing
the costs of resource use, ownership creates an incentive for
stewardship (Grafton et al. 2006). In fisheries, for example,
this proposed link has been used to argue that privatized catch
shares will, and do, improve sustainability (Costello et al.
2008).
However, the link between private rights and stewardship
behavior is based largely on assumption. Because privatizing
natural resources has far-reaching and long-term conservation
and social implications (Bromley 2005, Sumaila 2010), there
is a clear need to demonstrate empirically whether, and to what
extent, that link actually exists. Our aim in the present study
is to examine relationships between private property rights, in
the form of individual transferable quota (ITQ), and resource
stewardship. The data come from five, high-valued (ABARE-
BRS 2010) abalone (Haliotis spp.) fisheries in southeast
Australia.
These fisheries are of particular interest because industry
groups have, to varying degrees, adopted conservative self-
management practices in addition to those stipulated by
government managers (Gilmour et al. 2011). In this they
provide cases of resource users voluntarily practicing
stewardship behavior and resource management. Of greater
significance, however, is the fact that in these fisheries,
individuals who do not themselves own rights, i.e., divers
contracted to harvest abalone, have had a substantial role in
developing and implementing the self-management practices.
This suggests that previously reported correlations between
environmental benefits and private property (e.g., Costello et
al. 2008) may not be a direct, or simple, consequence of
privatization.
In this paper we ask if there is a difference between the
management preferences of quota owners, who hold private
rights, and contract divers, who do not. We consider
preferences for conservative management practices, such as
reduced levels of allowable catch, to reflect the willingness of
individuals to incur short-term costs in the interests of long-
term resource sustainability, which, for the purposes of this
paper, we take to be stewardship. Where differences are
detected, we explore factors that may explain those
differences.
We consider some theoretical and practical issues relevant to
the role of private rights in natural resource management. We
describe the research context and methods. The latter entailed
a survey of stakeholders designed to reveal preferences for
different management strategies. In the results, we explore
how these preferences varied between categories of
stakeholders. Finally, we discuss the incentives experienced
by different groups and direct attention to factors that may
influence stewardship behavior, including some that are
seldom considered in more conventional models of rational
behavior.
1
Department of Zoology, The University of Melbourne,
2
Department of Resource Management and Geography, The University of Melbourne