common public resources Flashcards

1
Q

Elinor Ostrom

A

devoted academic life to studying problems related to common-pool resources

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2
Q

common-pool resources

A

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

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3
Q

examples of common-pool resources

A
  • fisheries
  • water
  • government funds
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4
Q

Garrett Hardin (1968) → “tragedy of the commons”

A

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

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5
Q

summary of the platform

A

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

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6
Q

nature of the CPR problem (2-fold)

A
  1. stock → difficult/impossible to exclude actors
  2. flows → individual rationality leads to over-consumption
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7
Q

solutions to CPR problems (2)

A
  1. the state (Leviathan)
  2. the market (privatization)
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8
Q

the state (Leviathan) solution to CPR problem

A

governments should control common-pool resources

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9
Q

government should decide…? (3)

A
  1. who can use CPR
  2. when they can use CPR
  3. how many animals can graze
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10
Q

examples of the state (Leviathan) solution (3)

A
  1. Brazilian state should control the Amazon Rainforest
  2. Heillbroner (1974): “iron governments”, military rule
  3. Ehrenfeld (1972): public agencies or international authorities
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11
Q

criticism of imposing fines on rule-breakers?

A

Elinor Ostrom’s criticism → most agencies can’t have all that ability & information, and there would be huge costs involved

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12
Q

equilibrium with imperfect monitoring

A

an agency cannot perfectly monitor/punish actions (lack of budget, trained staff, etc.)

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13
Q

real life example of the state solution

A

national agencies (Thailand, Nepal, India) issued elaborate regulations concerning the use of forests

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14
Q

problems with real-life national agencies (2)

A
  1. unable to enforce enough foresters
  2. foresters were paid low salaries → corruption, bribes
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15
Q

consequences of problems with real-life national agencies (2)

A
  1. overexploitation of resources by private agents
  2. violent conflict (indigenous vs. exploiters)
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16
Q

the market (privatization) solution to CPR problem

A

end the common-property system by creating a system of private property right

17
Q

problems with the market (privatization) solution to CPR problem

A

privatization is not always feasible (water, fisheries, forests)