Abstract: Market failure of natural resources is more serious than general products because its generation's problems which bring by its public and external economic character are more serious than general products. In the usage of natural resources between generations, the contemporary person always tends to use natural resources as more as possible, and this kind of behavior makes the problem of “public land tragedy” more serious than general goods. Although the conflicts in using renewable resource between generations are slighter than the depletable resource, the problem of market failure that brings by the generations' behavior still exists. Therefore, in order to use the renewable resource between generations in a sustainable way, government needs to enter the renewable resource market to regulate it according to its economic character, and to establish a reasonable usage institution system. Taking the fishery resources used in a sustainable way as an example, the paper first uses the cost-value economics method to analyze the using cost and value of renewable resource in its usage between generations on the basis of Schaefer's model. Then, the paper put forward the optimum institution pathway in which the renewable resource can be used effectively between generations, including the regulation by original cost, definite division of property rights, the exchangeable regulation contributing tickets and the regulation of public compensation.

Key words: renewable natural resources, between generations, property rights, institution