CED 497A: Population & EnvironmentSpring 2014Common Property Resources: Theory and PracticeEmily J. Wornell

This week will help you understand:

What are common pool resources Problems associated with them ▪ The tragedy of the commons

Main perspectives on how to deal with common pool resource problems Private property and government intervention

What are externalities Alternative perspectives on common pool

resource problems Complexity of these issues

What is a common pool resource?

What is the common pool resource problem?

What is the common pool resource problem?

What is the common pool resource problem?

Maximum utility = positive elements + negative elements

Positive = = 1

What is the common pool resource problem?

Maximum utility = positive elements + negative elements

Negative = shared between farmers = <-1

What is the common pool resource problem?

Maximum utility = positive elements + negative elements

Maximum utility = 1 + (-.25) = .75

What is the common pool resource problem?

What is the common pool resource problem?

What is the common pool resource problem?

What is the common pool resource problem?

What is the common pool resource problem?

Tragedy of the commons

What can be done?

Characteristics of CPR Size and carrying capacity Measurability Temporal and spatial differences Amount of storage in the system Physical movement Regeneration Impact of harvesting technologies

What can be done?

Private property rights Government intervention

Increased conservation

Efficient use ofresources

Reduced transactioncosts

What can be done?

Private property rights Government intervention

Prohibition

Restriction

Incentives/sanctions

What can be done?

What can be done?

18.2 million in 1954

8.9 million in 2012

What can be done?

Externality: Factor of production not under the direct control of of the producer- unintended consequences, positive or negative

What can be done?

Externality: Factor of production not under the direct control of of the producer- unintended consequences, positive or negative

What can be done?

Externality: Factor of production not under the direct control of of the producer- unintended consequences, positive or negative

What can be done?

Externality: Factor of production not under the direct control of of the producer- unintended consequences, positive or negative

What can be done?

Externality: Factor of production not under the direct control of of the producer- unintended consequences, positive or negative

What can be done?

Externality: Factor of production not under the direct control of of the producer- unintended consequences, positive or negative

What can be done?

Private property rights Government intervention

Decrease negative externalities

Benefit from positive externalities

What can be done?

Private property rights Government intervention

Decrease negative externalities

Benefit from positive externalities

What happens when they fail?! Love Canal

What can be done?

Original plan: done in 2007 @ $4.3 billion

Newest estimate: done in 2022 @ $13.4 billion

Most optimistic timeline: cleanup finished 2063,which is longer than the plant was in operation.

Alternative perspectives Open access and group property rights

What can be done?

Elinor Ostrom

Alternative perspectives Open access and group property rights

What can be done?

Full circle

Increased population Overexploitation Tragedy of the commons

Environmental disasterIncreased vulnerability

Full circle

Population Environment

History Society PoliticsEconomics DemographicsGeography