common public resources Flashcards
Elinor Ostrom
devoted academic life to studying problems related to common-pool resources
common-pool resources
goods/resources that benefit group(s) of people BUT provide lower benefits to everyone if each individual pursues her own self interest
OR
non-excludable BUT subject to crowding out
examples of common-pool resources
- fisheries
- water
- government funds
Garrett Hardin (1968) → “tragedy of the commons”
individuals acting rationally and independently according to their own self-interest will deplete a shared resource, EVEN if it is contrary to the best interest of the group
summary of the platform
in a prison where inmates are fed on a descending platform, those on the upper levels take more than their fair share while those below are left to starve on scraps
nature of the CPR problem (2-fold)
- stock → difficult/impossible to exclude actors
- flows → individual rationality leads to over-consumption
solutions to CPR problems (2)
- the state (Leviathan)
- the market (privatization)
the state (Leviathan) solution to CPR problem
governments should control common-pool resources
government should decide…? (3)
- who can use CPR
- when they can use CPR
- how many animals can graze
examples of the state (Leviathan) solution (3)
- Brazilian state should control the Amazon Rainforest
- Heillbroner (1974): “iron governments”, military rule
- Ehrenfeld (1972): public agencies or international authorities
criticism of imposing fines on rule-breakers?
Elinor Ostrom’s criticism → most agencies can’t have all that ability & information, and there would be huge costs involved
equilibrium with imperfect monitoring
an agency cannot perfectly monitor/punish actions (lack of budget, trained staff, etc.)
real life example of the state solution
national agencies (Thailand, Nepal, India) issued elaborate regulations concerning the use of forests
problems with real-life national agencies (2)
- unable to enforce enough foresters
- foresters were paid low salaries → corruption, bribes
consequences of problems with real-life national agencies (2)
- overexploitation of resources by private agents
- violent conflict (indigenous vs. exploiters)
the market (privatization) solution to CPR problem
end the common-property system by creating a system of private property right
problems with the market (privatization) solution to CPR problem
privatization is not always feasible (water, fisheries, forests)