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Fragmented Ownership and Natural Resource Use: Evidence from the Bakken

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  • Bryan Leonard
  • Dominic P Parker

Abstract

Does land fragmentation impair spatially expansive natural resource use? We conduct empirical tests using ownership variation on the Bakken, one of the world's most valuable shale oil reserves. Long before shale was discovered, US policies created a mosaic of private, jointly owned and tribal government parcels on the Fort Berthold Indian Reservation. We find that all three forms of fragmentation reduced production during the 2010–15 oil boom, especially joint ownership and the interspersion of small parcels of government and private land. We estimate implied gains from consolidation and discuss implications for the use (or conservation) of other spatially expansive resources.

Suggested Citation

  • Bryan Leonard & Dominic P Parker, 2021. "Fragmented Ownership and Natural Resource Use: Evidence from the Bakken," The Economic Journal, Royal Economic Society, vol. 131(635), pages 1215-1249.
    • Handle: RePEc:oup:econjl:v:131:y:2021:i:635:p:1215-1249.
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    File URL: http://hdl.handle.net/10.1093/ej/ueaa097
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    Cited by:

    1. Justin B. Winikoff & Dominic P. Parker, 2024. "Farm size, spatial externalities, and wind energy development," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(4), pages 1518-1543, August.
    2. Donn L Feir & Rob Gillezeau & Maggie E C Jones, 2024. "The Slaughter of the Bison and Reversal of Fortunes on the Great Plains," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 91(3), pages 1634-1670.
    3. Terry L. Anderson & Ilia Murtazashvili & Dominic P. Parker, 2024. "The political economy of American Indian policy: introduction to a special issue," Public Choice, Springer, vol. 199(3), pages 187-191, June.

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