Study Of Basic Theory Of Joint Development From The Perspective Of Law And Economics

As a temporary dispute settlement mechanism for natural resources exploration and development in disputed sea areas,joint development has become more and more important with the discovery of offshore oil resources and the exhaustion of land oil resources exploitation since last century.Since the first continental shelf case between Bahrain and Saudi Arabia came into being in 1958,there are still many problems and legal risks in the mode of joint development up to now,so the legal regulation of joint development needs to be improved urgently.Given the preceding case studies related to “joint development” were only conducted on the ground of either law or economics,this paper will combine the two and start from the economics of law,and discuss the definition and models of “joint development”.It will consider the preceding case analysis in terms of “joint development” and analyse how this model would influence China,before exploring the model that suits China and suggesting detailed solutions as to how China should take a part in the exploration and the use of the mining resource in the disputed waters.From the perspective of the economics of law,this paper will discuss the basic concepts of“joint development”,and analyse the basic theories with methods such as case studies,deductive reasoning,and historical analysis based on an abundance of referencing documents.The first part of the paper includes the purpose of the research,the significance,the analytical method,and the novelty,which intends to enrich the thesis and make practical significance.The second part applies the basic theories related to “joint development” and the economics of law,and elaborates on the feasibility and necessity of implementing “joint development”.The third,fourth,and fifth parts of the paper discuss “joint development” on the basis of “homo economicus” “equity and efficiency” and “Cost-benefit Theory and Game Theory”,which is the basic form of the economics of law,respectively.Further,in these parts,the paper explores the systems of “joint development” with real-life cases.The sixth part discusses the channel for China to build a suitable “joint development” system.In particular,the paper believes that the joint development of the resources is affected by factors such as a country's energy demand,political interest,international relationship,and power differentiation,which are variable and political.Therefore,the economics of law is able to contribute to the actual practices in countries on the way ofeffectively and fairly resolving the territorial disputes caused by overlapping control and the competition over the resources in the disputed waters during the “joint development”.It is expected that this paper will demonstrate value from the theories of the economics of law and the international experience and implications in “joint development” for China's “joint development”.