Understanding the Tragedy of the Commons and How to Avoid It

 

The tragedy of the commons is an outstanding phenomenon in microeconomics referring to a situation where individuals exercising rational self-interest exhaust a common resource to the benefit of none. This is an economic problem that occurs when a resource is both scarce in some sense, and nobody can be prevented from using it, each person’s use of the resource cuts down the amount available to others. These resources are called common resource goods.

The Concept Explained

All men give importance to what is of concern to them and not to what is of concern to any other party. Hence, that which cuts across the large of people, gets the least attention. The tragedy of the commons illustrates this principle: However, when people use a common asset, self-interest promotes efficiency, but at the same time causes the resource to become depleted up to the point where it becomes detrimental to all the parties involved.

For example, let us take a look at overfishing as one of the main examples of this problem. One of the most imperative examples is Pacific bluefin tuna fish which has declined to about 3% of its former population because of overfishing. This not only poses a threat to the mammals but also to the rest of marine life and their environment. Here, the problem rests not in the common-pool resource but in selfishness of the individuals who hold the resource in an attempt to gain more in the short-term at the cost of future generations.

Avoiding the Tragedy

There is a need to prevent the tragedy of the commons is to set up measures that reduce or control self-interest pursuits. Privatization, however, is one of the strategies that can be employed to address the common pool dilemma; however, it may not be practical or work for most common pool resources. But in most cases the successful management entails the different levels of government action as well as the grassroots efforts.

Government Intervention

Another approach that can help avoid the tragedies of the commons is the government regulation of resources. This way, the governments can come up with rules and regulations that could ensure that the use of resources is sustainable and accessible to all. here are some methods:

1. Rationing: The measures which may be taken include limiting the amount that a person or an organization is allow to use in order not to reach the upper limit. For instance, the fishing limits of the allowable amount of fish that can be caught in a given season can assist in controlling the numbers of fish.
2. Taxation: Sometimes, it is possible to limit the intake of the commonly available natural resources by placing taxes on their utilization. Taxes on carbon, for instance, ensure that carbon dioxide emissions are made expensive through its polluting effect hence decreasing emissions.
3. Conscription: The implementations of laws that retain specific measures for conservation, or the reserves where fishing or hunting is prohibited may be effective in saving species and natural communities.

Policing and Penalties

Despite these regulations, there is need to ensure that these regulations are effectively enforced so as to avoid negligence. A good example is that through enforcement and sanctions for offenses, people shall be discouraged from overusing those resources. Possible sanctions could be a penalty, a sanction which one receives if violating the requirements, or even legal sanctions.

Community-Based Solutions

Moreover, there is the community-based management of resources added to the government intervention strategies. It is possible for the various shared resources within communities to have guidelines and or agreements to be set regarding its use. These include fishing associations where the members make certain commitments to restraint themselves from excessive fishing among other facets and in case any member violates the set rules and regulation the other members can restrain such a person.

Conclusion

The tragedy of the commons is still a hot topic in microeconomics because it touches upon the topic of the rivalry of the private interests of many people and the common good. It was noted that thus problem can only be solved through a combination of legislated measures as well as public and professional control and enforcement. By using political decisions, for example, rationing, taxation, and conscription, and using police coercion and penalties for non-compliance, it is possible to regulate the actions of individuals and companies in the usage of common resources responsibly and minimize the outcomes of the ‘tragedy of the commons’. In conclusion, the above mentioned attempts can enable the conservation of these scarce resources for the benefit of the future generations and also ensure sustainability of the ecosystems in the world.