Common Pool (Access) Resources (DP IB Economics)
Revision Note
Written by: Steve Vorster
Reviewed by: Jenna Quinn
Definition & Characteristics
Common pool (access) resources are those that are non-excludable but rivalrous in consumption
Non-excludable means that anyone can access these resources without having to pay for them
This usually occurs because no one owns the resource (no private ownership)
Rivalrous means that these resources can be used up
As one individual or firm uses them, it reduces the opportunity for others to use them
They are finite in supply
The tragedy of the commons (as explained by Garret Hardin in 1968) occurs when common pool resources are used in production in an unsustainable way
This creates negative externalities of production
The external costs of production often include pollution, environmental damage and resource depletion which prevents future generations from benefitting in the same way
Typical examples of common pool resources include
Ocean fishing (especially in international waters)
Communal grazing land
Water sources such as rivers
Natural forests and rainforests
Real World Example of the Tragedy of the Commons
The Darién Gap is in Panama and is located on the border with Columbia
This area is one of the most impregnable rainforests on the planet and is inhabited by indigenous tribes, drug traffickers, and para-military organisations
The Darién Gap is a common pool resource
Background
The Darién Gap is the only area where the 19,000km Pan American highway from Ushuaia (Argentina) to Prudhoe Bay (Alaska) is interrupted: a 62-mile gap
Illegal logging has been steadily increasing
The most valuable resource in the forest is the Rosewood Cocobolo tree which sells in Panama for $4,000 per m3 but in China for $12,000 per m3: this scarce resource is rapidly being depleted
Loggers use the river system to penetrate deep into the forest
Once the forest canopy is thinner, they bring in bulldozers and create illegal roads to speed up the extraction
When they have left, palm oil entrepreneurs move in and plant palm oil trees
Despite laws in place to protect the forest, there is no enforcement and corruption is common
Hundreds of tons are shipped each year to China
The indigenous tribes are waging war with the illegal loggers and there are frequently violent clashes and deaths
Solutions
Several solutions have already been attempted by the indigenous community, including
Collective self-governance of the area
Forest mapping using drones
Using drones to gather video footage of the identity of the illegal loggers
Appeal to the government by the three indigenous tribes for legal ownership rights to the land
Appealing for the creation and enforcement of international agreements on the sale of illegal timber
Evaluating Solutions to Common Pool Resources (in the Darién Gap)
An Evaluation of the Solutions used to Address The Tragedy of the Commons in the Darién Gap
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Collective self-governance |
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Appeal to the government for legal ownership rights of tribal land So far, about 40% of the land has been granted to the tribes |
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International Agreements A global solution, enforceable by law helps to reduce illegal behaviour |
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