Tragedy of the Commons

Abstract

Prior to the mid-1750s, the villages of England had large nearby areas that belonged to the village. These common areas were not held in private ownership. But many members of the village raised sheep on their land and often released their extra sheep on the commons. They reasoned that even if their animals on the commons did not grow well due to overconsumption of the grass, any growth was a benefit that would have otherwise not materialized. So the villagers kept putting out sheep until these sheep overconsumed the grass, resulting in the collapse of the commons and the death of the sheep. This process is called the tragedy of the commons and we see it in many issues today, such as air and water pollution. The air and water are still generally thought of as “free” dumping places for the pollutants of utilities, industries, and autos, though the regulators and the economists are catching up!