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Calling on Communities

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Free Market Environmentalism

Abstract

In his influential 1968 article, “The Tragedy of the Commons,” Garrett Hardin explained why a scarce resource open to all is subject to overexploitation.1 He used as an example of the commons a pasture open to all herdsmen for cattle grazing. Hardin pointed out that eventually the pasture will become overgrazed. The reason? Each herdsman can capture all the benefits of adding more cows, while facing only a fraction of the costs—the harm caused by excessive grazing—because costs are shared by all. The tragedy, notes Hardin, is that each individual is “locked into a system” of competition for grass that leads to ruin.2 A similar tragedy occurs when a fishing territory is open to all fishers. Each fisher captures all the benefits of harvesting more fish, while facing only a fraction of the costs—the reduction of the fish population for future harvest.3 Similar logic can explain the deterioration of other resources, such as airsheds and waterways open to all for dumping purposes.

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Notes

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  2. The collapse of the Pacific sardine fishery provides a classic example. See J. L. McHugh, “Jeffersonian Democracy and the Fisheries,” in World Fisheries Policy: Multidisciplinary Views, ed. B. J. Rothschild (Seattle: University of Washington Press, 1972), 134–55.

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  13. For an explanation of this choice, see Terry L. Anderson and Fred McChesney, “Raid or Trade: An Economic Model of Indian-White Relations,” Journal of Law and Economics 37 (April 1994): 39–74.

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© 2001 Terry L. Anderson and Donald R. Leal

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Anderson, T.L., Leal, D.R. (2001). Calling on Communities. In: Free Market Environmentalism. Palgrave Macmillan, New York. https://doi.org/10.1057/9780312299736_11

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