Tag Archives: Tragedy of the commons

Fishing – Tragedy of the Commons

The  Tragedy of the Commons was a title of an article by Garrett Hardin in 1968 although the phrase is more commonly used to name the effect which it describes. It explains what can happen when a number of individuals share a common resource and each individual is presumed to act rationally and in his own interest.

For instance if there 10 different farmers grazing a piece of land then there is an incentive to add one more cow to your herd as you gain all of the benefit of this extra cow and you only have to suffer 1/10 of the cost resulting from the increased degradation of the land. Thus although it is in each individual’s self interest to increase the size of your herd, in the long run the land use will be depleted. This concept can also be transferred to CO2 emissions where countries emit emissions in order to grow their economy but don’t consider the long-term impact of global warming on drought and disease.

Recently a lot of attention has focussed on the fishing industry which is worth $16 billion annually. International law states that 64% of the surface of the oceans are defined as ‘the common heritage of mankind’ although with the advent of technology and bigger and faster fishing trawlers the last 50 years has seen a significant depletion of stock. Approximately 90% of fishing areas are fished to sustainable limits or beyond.

TrawlerStopping overfishing

Property rights has been the traditional policy to try and overcome the tragedy of the commons. This gives exclusive rights to coastal states to police and maintain territorial waters but the looting still continues – since 2010 the proportion of tuna and tuna-like species being overexploited has increased from 28% to 36%.

Reducing subsidies is seen as the most pressing policy as they come to $30 billion a year of 70% are given to more developed countries. In giving subsidies you reduce the running costs of operators but it also brings certain fishing fields within reach for trawlers from developed economies. Only 10 countries received the money from high-seas catches between 2000 and 2010 and that is with Africa having more fishermen than Europe and America combined.

Closing off more areas fishing is another alternative and it has been suggested that 30% of oceans should be designated as ‘marine protected areas’. Countries could also take responsibility by creating marine reserves within their territorial waters.

Aquaculture the controlled farming of fish could be the answer – in 2014 more fish were farmed for consumption rather than caught in the oceans. But this area needs a lot more government support as feedstocks are often poor and storage facilities inadequate.

Source: The Economist July 16th 2016

Tree-conomics

Got this from the New York Times – I notice that it was also on the Tutor2u blog. Excellent article that argues the point as to whether trees are public or private goods. Covers some basic economic terms such as:
*rational consumer
*externalities
*tragedy of the commons
*free rider

The difference between private and public benefits explains why some local communities regulate tree management. But more profoundly, it drives a hardwood wedge between individual and social outcomes, with disturbing implications. Deforestation is contributing to global warming.

Great resource for Unit 3 of the CIE AS Level course or NCEA Level 3 Achievement Standard 3.3. Click here for the full article.