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Exploring Environmental Economics: Tragedy of the Commons

Understand the concept of Tragedy of the Commons and its impact on the environment. Explore the role of economics in environmental management and the difference between developed and developing countries.

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Exploring Environmental Economics: Tragedy of the Commons

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  1. Agenda 1/10 • Warm-Up: What is a commons? Can you think of an example of a space you share with other people here on campus. • Finish 1.1 Notes • Complete Environmental Careers gallery walk • Pretzel Activity • Notes 1.2

  2. Science & The Environment Section 2: The Environment & Society Standards: SEV4d, SEV4f, SEV5c, SEV5f

  3. What is the “Tragedy of the Commons”? • Essay written by Garrett Hardin in 1968 • Main idea: Problem with solving env. problems is the conflict btwn short term goals of an individual vs. the long term welfare of society.

  4. What is the “Tragedy of the Commons”? • Imagine a “common” area of land for grazing sheep. • It is in the best interest of one INDIVIDUAL farmer to put as many sheep as he can on the common grazing land. That way he can make more money. • HOWEVER, when ALL farmers think this way, too many sheep graze in that area and the area becomes depleted from overgrazing, trampling, etc..

  5. What is the “Tragedy of the Commons”? • Someone has to take responsibility for maintaining a resource or it can be overused & depleted. • We now have grazing regulations and hunting & fishing laws to prevent resource depletion. • What are some other “common” areas?

  6. What does economics have to do with the environment? • Supply & Demand • If resource is limited and has greater demand then the higher its cost.

  7. What does economics have to do with the environment? • Costs-Benefit Analysis • Weighing the cost of buying/producing a product vs. the benefit to the environment • EX: Is fracturing the Earth to get remnant oil more beneficial even though there is a cost to the environment and drinking water sources?

  8. What does economics have to do with the environment? • Risk Assessment • Usually done along with cost-benefit analysis • Must determine risk to know if there is a benefit to an environmental action. • Risk assessment depends on who is doing it. • If done by an industry- may see less risk • If done by a citizen group- may see more risk

  9. What is the difference between a developed & developing country? • Developed countries • higher average incomes • slower population growth • diverse industrial economies • stronger social support systems • EX: US, Western Europe, Japan • Responsible for the “consumption crisis”- use & waste too many natural resources • Use 75% of world’s natural resources BUT only makes up 20% of world’s population. Top World Oil Consumers in 2009

  10. What is the difference between a developed & developing country? • Developing countries • lower average incomes • simple & agricultural-based economies • rapid population growth • EX: Mexico, Indonesia, countries in Africa • Responsible for “population crisis”- Population grows too fast for current resource level- causes malnutrition, disease, fewer jobs

  11. What about China? • China is most populated country- 1.3 billion people • China is on the verge of becoming developed thanks to outsourcing and globalization. • Population crisis + consumption crisis = INCREASED RESOURCE DEPLETION AND POLLUTION • India (population 1.2 billion ) not far behind!

  12. What is an ecological footprint? • Shows the productive area of the earth needed to support one person in a particular country. • Here’s Mrs. Davis’ data…

  13. What is a sustainable world? • Sustainability- condition in which human needs are met in such a way that a human population can survive indefinitely. • Requires participation of citizens, industries, & governments

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