Tragedy of the commons

• Definition

  ' The idea that people acting in their own best interests will overuse a common resource without considering that this will lead to the depletion or degradation of that resource
• The tragedy of common applies to:

  - water, forest, fish (outside territorial waters- 12 n.miles, limit captures), grazing land, air (free good), oil, gas, coal
• Factors that can cause the tragedy of the commons

  The resource is non-excludable: Its difficult/impossible to prevent people from using the resource, even if they do not pay for it.

  e.g its difficult to prevent people from fishing in a common pool of water.
• Factors that can cause the tragedy of the commons - 2

  The resource is rivalrous: one person's use of the resource reduces the amount that is available to others.

  e.g if one person overfishes a common pool of water, there will be less fish left for others to catch.
• Factors that can cause the tragedy of the commons - 3

  There is no central authority to manage the resource: If there is no one who is responsible for managing the resource, it is difficult to prevent people from overusing it.
• Link to the 'free rider' problem

  It links to the 'free rider' problem of a public good (non-excludable but rival) - Common access resources
• Solutions to the tragedy of the commons

  - Govt regulation to share out the resource at a sustainable level (command & control), regulate the use of common resources in order to prevent overexploitation. Govt can set quotas on fishing or grazing.

  
  

  - Elinorostrom & cultural norms, overfishing or over grazing disapproved
• Solutions to the tragedy of the commons - 2

  - Establishing property rights (excludability)

  - Tradable permits/quotas

  - Taxation to encourage lower usage, less incentive to produce as consumers are less willing to buy