Capacity and Capacity Utilization in Common-pool Resource Industries

摘要: Excess capacity poses one of the most pressingproblems that arise when industries exploitcommon-pool natural resources. It entailsover-investment in the capital stock andexcessive use of variable inputs, and placesadditional exploitation pressures on theresource stocks. Confusion persists over theappropriate definition and measurement ofcapacity and capacity utilization for theseindustries. But understanding capacity and itsmeasurement is necessary to properly design acapacity management program. This …