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The Secret of the Commons: Why does overexploitation lead to resource depletion?
In economics, a common-pool resource (CPR) refers to a system of natural or man-made resources whose characteristics make it impossible for potential beneficiaries to be completely excluded. Such resources include fisheries, forests, diving areas, etc., and how over-exploitation leads to resource depletion is a major issue facing society today.
The characteristic of common resources is that they are subtractable, that is, people who use a resource will reduce the total supply of the resource. For example, fishermen pursue the quantity of catch, and if it is not managed, fishery resources will soon be depleted.
"Fishermen often have an incentive to catch as much as possible, otherwise their profits will be taken away by others."
Example of sharing resources
Common examples of shared resources include forests, irrigation systems, fisheries, and groundwater basins. Take California as an example. The state is facing a water shortage and local irrigation water demand needs to be managed urgently. During the drought from 2012 to 2016, farmers with ancient water rights used water freely, which in turn caused a significant reduction in water use by urban residents.
"In shared water supply systems, some communities and companies, in the absence of effective regulation, tend to over-exploit resources, leading to unstable supplies."
Common property management
The management of shared resources depends heavily on the characteristics of the resources and the behavior of their users. Effective management strategies need to take into account socio-cultural and economic contexts and emphasize community participation and self-management. The U.S. state of Maine has implemented effective common resource management in lobster fishing and created a community-consensus fishing rights allocation system that enables sustainable use of resources.
"Effective management of shared resources must create a virtuous cycle in the system of habitat and resource use."
Challenges and Solutions
While many common resource systems have the potential to be self-regulating, in many cases unregulated overuse can lead to resource exhaustion. To avoid the Tragedy of the Commons, communities must establish rules to control the use of resources. As the famous scholar Irene Ostrom said, local communities' management of common resources can challenge the traditional "privatization or nationalization" argument.
"Successful management requires clear boundaries, effective supervision and community engagement."
The role of government and communities
Ownership of resources may belong to the state, local government or the community. When resources do not belong to any individual, they become open resources, which means that competition among users will be quite fierce. The government plays a supporting and supervisory role in this process, while autonomous management within the community is particularly critical.
Case Study on Fisheries
In the New York Bay region, fishermen's cooperatives protect fish stocks by setting catch quotas and limiting access to markets. In Maine's lobster fishing areas, civic awareness and community norms also play a key role in protecting resources. These examples demonstrate the feasibility and importance of managing common resources.
Conclusion"When everyone agrees on a common goal, conservation and sustainable use of resources will no longer be an unattainable ideal."
Overall, the management of common resources faces many challenges, but effective community governance and management strategies can provide solutions. As human activities have an increasingly profound impact on the environment, everyone needs to think about the responsibilities and missions they should assume when using shared resources. How can we ensure the sustainability of resources and achieve win-win results?
