Understanding property rights

Collecting firewood from a forest or water from a stream, grazing a herd, felling trees, preventing entry to a protected area, and making decisions about who should or should not have rights to collect firewood or water are all expressions of the exercise of property rights to natural resources.

Property rights govern who can do what with resources. They specify the claims and related obligations of different actors — individuals or groups — to the benefits of a resource. The assigned set of rights and obligations shape the authority and incentives structure of the rights holder.