Garrett Hardin discusses the role of open access resources that lead to their over use and exploitation. Environmental goods are in the nature of open access, common property resources so that there is no limit to their use. This results in over exploitation and destruction.

1. TRAGEDY OF
THE COMMONS
GARRETT HARDIN
Prof. Prabha Panth
Osmania University

2. COMMON PROPERTY RESOURCES
• According to Hardin, environmental problems are
caused by overuse of common property
resources.
• All have equal rights to use these
resources, because they are public goods:
• No ownership of common property such as
meadows, seas, rivers, mountains.
• Non-exclusion, not possible to exclude others from
using common property. Expensive to stop others.
• Rival: one person’s use reduces availability to
others, e.g. grassland, fishing in a lake, the resources
are limited.
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3. Self adjustment in Economic theory
• Micro theory assumes that price and cost
will control the number of producers and
consumers.
• In PC, new firms can join the industry, as
long as profits > 0.
• After this point, when loss occurs, the loss
making firms will leave the industry.
• This will regulate automatically, the
number of firms in the market.
• There is equilibrium in the PC market.
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4. OPEN ACCESS AND DISEQUILIBRIUM
• But in Open Access system there are no
self adjusting, controlling mechanisms.
• The use continues without
constraints, leading to over exploitation.
• Each independent user, wants to maximise
his own benefit.
• The total users will over use and exploit
the common property.
• Hardin says, “Freedom in the Commons
brings Tragedy to all.”
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5. Example:
• Assume an open access, common property such
as a grassland.
• No payment for grazing.
• 10 cowherds who use the grassland for grazing
their cows.
• Each cow herd has 10 cows, total 100 cows.
• All cowherds act independently.
• All want to maximise profits.
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6. • Now one cowherd X decides to increase his herd
by1 cow.
• Free land, so MC = 0
• All the benefits of extra cow come to him, MR
=1.
• MC of over grazing is [1/(n+1)] = 1/101, which is
very small.
• This MC is distributed over all 10 cowherds.
• MR from extra cow to individual = 1.
• Since MR > MC for the individual cowherd, he
increases his herd.
• This goes on as long as MR > MC.
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7. • Other cowherds will also decide to increase the
size of their herds.
• They will independently decide to add to their
herd, as long as MC < MR.
• If each decides to increase his herd by 1, then
total 10 cows will be added, and so on
• This will result in overcrowding, over
grazing, and finally destroy the common field.
• Finally everybody pays the price of overgrazing.
• This is the Tragedy of the Commons:
• “Freedom in the commons, brings ruin to all” Hardin
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8. • Same situation applies in
•
•
•
•
Fishing,
Forestry,
Pollution and solid wastes,
Global pollution problems such as CO2
emissions.
• Since there is Free access, the commons
are like a Public Good.
• Private and overuse destroys Public
Goods.
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9. Solution by Hardin:
1. Joint ownership is needed to control
overuse.
2. Membership and fees should be paid to
reduce usage,
3. Restrict number of users/members.
4. Payment for use, will increase individual
costs, prevent overuse.
5. Fines and penalties for over-using the
commons.
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