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Revenue Sharing and Social Capital in Community-Based Resource Management: Empirical Evidence from Japanese Surf-Clam Fisheries

This article provides the first rigorous analysis of the effects of revenue sharing and social capital and identifies the mechanism through which revenue sharing and social capital affect resource outcomes. Revenue sharing alters harvest incentives but also fosters social capital through bonding a group financially, which can affect the incentive for cooperation. Similarly, social capital counteracts the incentive to free-ride induced by revenue sharing in addition to sustaining the incentive to cooperate. Using data collected from Japanese fishery groups, we find evidence that revenue sharing improves economic outcomes primarily through incentivizing fishers to develop their information networks.