Coordination problems in local-level resource management

Starting from the observation of important returns-to-scale effects in conservation of common property resources, we identify some of the factors that impinge upon the chances of success of a decentralized, group-based, management of local natural resources. Particular attention is paid to the influence of asset inequality among resource users. In particular, it is shown that, by redistributing incentives among landowners, land reform has an ambiguous impact on the latter's willingness to undertake conservation investments. (C) 1997 Elsevier Science B.V.