Common Pool Theory

Garrett Hardin (1968)

Professor of BiologyUniversity of California, Santa Barbara

The Tragedy of the Commons

Definition and Conceptual Root

• The tragedy of the commons (also Common Pool Theory- CPT) is a class of phenomena that involve a conflict for resources between individual interests and the common good. The term derives originally from a parable published by William Forster Lloyd in his 1833 book on population

http://en.wikipedia.org/wiki/Common_good

http://en.wikipedia.org/wiki/William_Forster_Lloyd

Core Argument of CPT

The parable demonstrates how free access and unrestricted demand for a finite resource ultimately dooms the resource through over-exploitation. This occurs because the benefits of exploitation accrue to individuals, each of which is motivated to maximise his or her own use of the resource, while the costs of exploitation are distributed between all those to whom the resource is available (which may be more individuals than the exploiters).

Points to Note About CPT

1. The Tragedy is a metaphor for what Alfred N. Whitehead called "the remorseless working of things.”

2. Hardin’s aim was to draw attention to problems that cannot be solved by technical means, (need change in human values or ideas of morality.

3. He focused on population growth vs. life-support systems (a critical issue today)

Paradigm Example of CPT

1. Imagine the use by individuals of communally owned land for the grazing of cows owned privately by those individuals.

2. The utility to each individual of adding a single cow to his own herd is, more or less, the value of that cow; the cost to the individual is the consumption of the resources of that cow divided by the number of communal owners of the common. That is, the benefit to an individual of "hogging" a resource inevitably outweighs the cost where communal resources are concerned.

Paradigm Example (cont’d)

3. All economically rational herdsman in the community will add as many cows as they can to their own herds and as quickly as they can (before other herdsmen do), meaning that the finite resources of the communal land will quickly become exhausted.

"Therein is the tragedy. Each man is locked into a system that compels him to increase his herd without limit—in a world that is limited. Ruin is the destination toward which all men rush, each pursuing his own best interest in a society that believes in the freedom of the commons. Freedom in a commons brings ruin to all.

1. Planet Earth - Uncontrolled human population growth, leading to overpopulation2. Air - Air pollution3. Water – Water pollution and water wastage due to over-use4. Soil – Soil contamination5. Public spaces and lands – Littering, crime, graffiti 6. Roads – Traffic congestion, accidents and medical/insurance

Modern Commons and Tragedies

Modern Commons and Tragedies

6. Energy resources and climate - Burning of fossil fuels and consequential global warming

7. Fauna Species – Poaching, extinction

8. Forests - Frontier logging of old growth forest and slash and burn

9. Public lands – Overgrazing, overbuilding

10. Oceans – Overfishing, reclamation, pollution

11. Flora Life - Reduced biodiversity

http://en.wikipedia.org/wiki/Climate

http://en.wikipedia.org/wiki/Fossil_fuels

http://en.wikipedia.org/wiki/Global_warming

http://en.wikipedia.org/wiki/Logging

http://en.wikipedia.org/wiki/Old_growth_forest

http://en.wikipedia.org/wiki/Slash_and_burn

http://en.wikipedia.org/wiki/Biodiversity

A Primer forthe Management of

COMMON POOL RESOURCES

John Baden wrote

introduction

• What is “Common Pool Resources”– a natural or human-made resource system, whose size or

characteristics of which makes it costly, but not impossible, to exclude potential beneficiaries from obtaining benefits from its use

– typically consists of a core resource, which defines the stock variable, while providing a limited quantity of extractable fringe units, which defines the flow variable

– To keep the resource available for future generations the core resources are preserved

A Primer for the Management of COMMON POOL RESOURCES

Common Pool Resources- Public Goods

• Types of Common Pool Resources– irrigation systems, fishing grounds, pastures, and

forests


• Problems

– generally subject to the problems of congestion, overuse, pollution, and potential destruction unless harvesting or use limits are devised and enforced.

– Example: Overuse of fisheries can tax the resource and cause the resource to become depleted


Who are the actors and what are their roles/responsibilities?

• Government actors• Corporate sector actors• Non-governmental/non-profit actors• Grassroots/citizen actors

(Examples of roles: Regulation, advocacy, enlightenment, mobilization, coordination, enforcement, arbitration, collaboration, etc.)

• Global Common-Pool Regime

– The Kyoto Protocol

• An amendment to the United Nations Opened for signature December 11, 1997 in Kyoto, Japan

• Aims to reduce the emissions of greenhouse gases, gases which are perceived by environmentalists to disrupt the perceived common-pool resource of a moderate global climate without climate change.


Issues in Managing Common Pool Assets

Why Recourse to Political Organization?

Public Goods or Public Bads

Private Solutions

The Free Rider Problem

Potential for Bureaucratic Performance

The Political Economy of Bureaucracies

Decision-Making or Bargaining Costs

The Potential for Bureaucratic Performance in a common Pool Situation


Political Recourse


Public Goods or Public Bads

Private Solutions

The Free Rider Problem




people ignoresocial impact

of private behavior

private behavior always affects the community, for good or for bad


government involves coercionrather than willing consent

even the few surviving classical anarchists acknowledge the necessity for occasionally relaxing the rule of willing consent.


to protect the weak, to prevent market forces, to enforce property rights and maintain a context of law and order

government is neededto serve as an arbiter

among parties


Public GOODS or Public BADS?



a public good is one which, if available for ANYone, is available for EVERYone


a similar definition applies for a PUBLIC BADif not available for ANYone, it’s not available for NO one


If there is no incentive for the public to contribute,there will be no public contribution.

rule


the government will just

TAX

If there is no public contribution…

the grass is always greener on the other side

exception #1 social pressure can

induce contribution for public goods


for example when a company maintains a public road

exception #2

if private benefit from providing a public good is greater than its private cost

then the good will be provided privately



a common pool resource is a resource for which there are

multiple owners


common pool resource

where one, or a set of users, can have adverse effects upon

the interests of other users

If there is no agency with the power to manage, it can be

collectively disastrous

The damage done by the smelters is greater than the

cost of cleaning the AIR


humans are also users of the AIR resource, as the smelters

limits and regulations are needed

the self- incentive to

maximize sales might make

resources unsustainable


Imagine if all the timber were suddenly put up for

grabs…

Unnecessary depletion of

resources


private SOLUTIONS


assigning them responsibilities and power

establishing AGENCIES


the free-rider

problem


in general, the world is taking on an ever-greater resemblance to a common pool


oma

What do we do?

Decision-Making or Bargaining Costs

The Potential for Bureaucratic Performance in a common Pool Situation


Decision making or bargaining costs

• Necessary to come to mutual voluntary agreements for use of common pool resources– Incentive to reach agreements because marginal costs are low

• Two main sets of costs involved– Actual cost

• Cost of construction or extraction of resources

– Opportunity costs• Costs associated with time spent on finance issues


Potential for Bureaucratic Performance in a Common Pool Situation

• Cost Benefit Analysis of Wildlife management

– With no common pool management the result will be a loss of the core resources

– If resource is managed then less net loss will accrue

– Possibility for management by bureaucracy to retain resources

• MSB: (Marginal Social Benefit)

•MSC (Marginal Social Cost)


Action

Potential for Bureaucratic Performance

The Political Economy of Bureaucracies


conclusion

• Common Pool Resources and Sustainability– Need to manage common pool resources to help achieve

sustainability• E.g., Overgrazing, Over-fishing, Deforestation, etc.

– Bureaucratic (Government) management • Dependent on the city (political will) and funding • Capabilities of citizens to take action

– Public (Community) Management• Dependent on the knowledge, skills and experience of community activists.

Q. Which method is best for the management of Common Pool Resources?


Technology

Common Pool Theory