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Before beginning and to loosen up a little bit, we are going to take a minute to enjoy a scene from The Office. 

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Before beginning and to loosen up a little bit, we are going to take a minute to enjoy a scene from The Office. 

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Garret Hardin (1915-2003) - professor of human ecology.

Tragedy of the commons - 1968 - article in Science magazine.

Hardin was concerned with how a rapidly increasing population would affect the commons of the environment.

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The Joker gives both boats the detonator to a bomb.

Boat A: civilians
Boat B: prisoners

Who remembers what happens afterwards?

A: NONE of the bombs are detonated.

Is that the rational thing to do?

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The Dark Knight - The Joker's Social Experiment

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Tragedy of the Commons is taken to be an example of the Prisoner’s Dilemma because it is a problem of collective action.

You have two people that have been captured and the police comes in with a deal --> if you testify, we will reduce your sentence (all the evidence the police have is based on the testimony of one or two of them):

1. Ideal world/best outcome: keep their mouth shut and will receive a minor jail sentence.

2. Player A testifies: 10 years in jail // Player B: 0 years in jail

3. Player A: 0 years in jail // Player B testifies: 10 years in jail

4. Player A and B testify:  both get 5 years

In most cases, cooperating is a good thing (working together is a good thing but in practice is very difficult).

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Social capital: public good that can shape the actions of people and influence the communities actions.

In other words, social capital is the creation of trusting relationships that allow you to support each other through the creation of opportunities.

Cultural turn in development: (?)

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Is the tragedy of the commons a market failure?

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Is the tragedy of the commons a market failure?

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Did we meet the objectives of the seminar?

What did we learn?

What did we like/unlike about the seminar?

What remains unclear?

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Excludable good: any excludable good or service is one to which someone can be denied access if they do not pay for it.

Rivalrous good: when a person consumes a particular quantity of a good --> that good is no longer available to others.

*Most susceptible to tragedy of the commons: common-pool resources.

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This is from a lecture I took last year.

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Hardin's solution to the Tragedy of the Commons

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Hardin's solution to the Tragedy of the Commons

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"Freedom in commons brings ruin to all" - Hardin.

Privatization

An individual (or corporation) has the right to exclude others from the use of resources and to regulate their use.

Both the costs and the exploitation of resources will not be reflected in the market price of the resource and its profit.

In case the resource is degraded, the market value will decrease, this should be sufficient incentive to maintain its existence.

State property (external authority)

State ownership means that resource rights are entrusted to the government, with certain access controls and different levels of exploitation.

I.e., protected natural areas in forests, biosphere reserves and different conservation modalities.

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Applying the tragedy of the commons to the real world.

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Applying the tragedy of the commons to the real world.

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Hardin’s claim only holds true under very specific and limited conditions.

These conditions include that participants:

1. Are fully anonymous

2. Have no property rights to the resource system

3. Cannot communicate, and

4. Lack long-term interests in a resource

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According to Ostrom, why are privatization and central regulation not the solution? 

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According to Ostrom, why are privatization and central regulation not the solution? 

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Agrawal and Gibson (1999): study of the commons and commons governance practices, the role of communities has been revalourized --> people are now seen as possible allies in or even initiators of solution strategies.

They propose:

Communities must be treated as having diverging interests.

Focus: interactions or politics through which these interests emerge, and on the institutions that influence outcomes.

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What are the design principles that Ostrom proposes to sustain common pool resources?

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What are the design principles that Ostrom proposes to sustain common pool resources?

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1. Clearly defined boundaries

2. Congruence between appropriation and provision rules and local conditions

3. Participation of resource appropriators in decision-making

4. Effective monitoring by monitors who are part of or accountable to the appropriators

5. Graduated sanctions for resource appropriators who violate community rules

6. Conflict resolution mechanism that are relatively cheap and easily accessible

7. Minimal recognition of rights to organize for communities of resource appropriators

8. Organization in the form of multiple layers of nested enterprises

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1 cow in a pasture --> the pasture lives BUT 50 cows in a pasture --> there is no more pasture.

The Tragedy of the Commons as the Prisoner's Dilemma: cooperation would be best overall, but you gain by betraying the other culprit (or resource competitor) no matter what they choose to do.

The expected environmental degradation due to the common use of scarce natural resources by many individuals.

The pursuit of the self-interest of each individual does not lead to common welfare (in fact, quite the opposite).

Example of a tragedy of the commons: depletion of marine fisheries, deforestation in various regions of the world, rapid reduction of oil and gas reserves, over extraction of water resources.

Additional comments about the tragedy of the commons?

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Tragedy of the Commons │ The Problem with Open Access

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Elinor Ostrom: self-governing regimes --> self organize in order to successfully manage resources without the help of an external actor.

The design of rules determines the success of the commons (Ostrom's design principles).

Success of rules is context dependent.

Good self-governance of the commons requires that a community solves both provision and appropriation problems.

Provision: costs of providing a common public good are private while the benefits are shared.

Appropriation: benefits from harvesting resource units are private while costs are shared.

Use of institutions --> when trying to solve collective action dilemmas.

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Once-ler arrives to a rich natural area (commons), there is no ownership by anyone nor is there any regulation. However, Once-ler overexploits (out of self-interest) the land (something that often happens to commons) for a short-term gain. While this is highly successful for him initially, in the long run, the land becomes polluted, and completely deforested.

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Why are common-pool resources the most susceptible to the tragedy of the commons?

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Why are common-pool resources the most susceptible to the tragedy of the commons?

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Sofia made a really nice, interactive and clear Padlet. We managed to discuss everything on time and it was comprehensible. One thing I did not like (but it is no ones fault) is that the session sometimes was a bit chaotic: we sometimes talk all at once. Furthermore, the topics were interesting to discuss.