Challenges of Governing Urban Commons: Evidence from Privatized Housing in China

Abstract

"The emergence and spread of common-interest housing is widely rationalized as club economics. However, such conceptualization is subject to flaws due to two essential features of common-interest housing which hinder the efficient function of these housing clubs. First, homeownership involves much higher mobility costs than rental housing. Second, common-interest housing necessitates further investment after recruiting members. This paper re-conceptualizes common-interest housing after being sold to individual owners as common-pool resources in urban settings. Privatized housing in China can especially reflect the characteristics of urban commons. The community solution to the problems of urban commons in China is constrained by external factors like legal and political system."