Starting from the observation of important returns-to-scale effects in
conservation of common property resources, we identify some of the fa
ctors that impinge upon the chances of success of a decentralized, gro
up-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 lando
wners, land reform has an ambiguous impact on the latter's willingness
to undertake conservation investments. (C) 1997 Elsevier Science B.V.