Lesson 1 - Tragedy Of The Commons Flashcards
(12 cards)
What are the two main characteristics of common goods?
Answer: Non-excludability and rivalry in consumption
Who identified the risk of overexploitation in common resources?
Answer: Garrett Hardin
What are the two main solutions proposed by Hardin for the tragedy of the commons?
Answer: Government regulation and control, and allocation of property rights (privatization)
What is the alternative approach to Tragedy of the Commons?
Proposed by Ostrom:
Communities can successfully self-organize and introduce rules (”institutions”)
What is the basic sustainability rule for renewable resources?
Answer: Do not harvest more than grows back
Define transaction costs in the context of common resource management.
Answer: The costs of reaching agreements and monitoring compliance
Name three examples of common goods.
Answer: Fish stocks, medieval grazing lands, clean air/water
What are the prerequisites for effective institutional management according to Ostrom?
- User interest in collaborative, sustainable resource use
- Shared understanding of resource system
- Effective monitoring systems and compliance with rules
- Profits exceeding transaction costs
What are the two perspectives of economic sustainability?
Answer: Weak and strong sustainability
What is Hardin’s Perspective for Tragedy of the Commons?
Identified risk of overexploitation due to individual incentives to take more than is socially desirable
What are transaction costs?
transaction costs - costs of reaching agreements and monitoring compliance
What is the basic sustainability rule for renewable resource management?
Basic principle: Do not harvest more than grows back
