The tragedy of the Commons

Question 1

What is the Tragedy of the Commons?

Answer 1

• An essay written by William Lloyd in 1833.
• The idea that any area where there no restrictions on usage will likely see demand outstrip supply to the detriment of all users in the future.
• This applies to all resources that might be commonly used by society.

Question 2

What would cause the tragedy of the Commons?

Answer 2

• If IPR (intellectual property rights), are absent from a market.
• This would lead to individuals maximising private benefits at the expense of society.
• Every individual tries to benefit from a scarce resource.
• Eventually, nothing is left and the whole of society suffers as a result.

Question 3

How is the tragedy of the Commons linked to the environment?

Answer 3

• Sustainable development is required if economic growth is to be environmentally friendly.
• We are liable to environmental problems such as, pollution, climate change and global warming.
• Government can place restrictions on common usage (e.g: via taxation to avoid overexploiting).