The Problem of the Commons: Still Unsettled after 100 Years

Abstract

The problem of the commons is more important to our lives and thus more central to economics than a century ago when Katharine Coman led off the first issue of the American Economic Review. As the US and other economies have grown, the carrying capacity of the planet--in regard to natural resources and environmental quality--has become a greater concern, particularly for common-property and open-access resources. The focus of this article is on some important, unsettled problems of the commons. Within the realm of natural resources, there are special challenges associated with renewable resources, which are frequently characterized by open-access. An important example is the degradation of openaccess fisheries. Critical commons problems are also associated with environmental quality. A key contribution of economics has been the development of market-based approaches to environmental protection. These instruments are key to addressing the ultimate commons problem of the twenty-first century-global climate change. (JEL Q15, Q21, Q22, Q25, Q54)

Can market mechanisms solve the refugee crisis?

“…The solution of assigning property rights that can then be traded in a market can be applied both to "rights to pollute" and to "obligations to provide refugee protection" [3], [4]. In the first case, countries willing to pollute beyond their assigned quotas pay a price per emission to countries polluting below their assigned quota.…”

Technology Gap and Catching up in Economies Based on Natural Resources: The Case of Chile

“…Likewise, evidence of middle-income trap is found in economies based on natural resources (NR) due to the fact that these endowments tend to adversely affect growth because several reasons such as the easy generation of high incomes, the low growth potential of a fixed production factor, the negative effect of currency appreciation over manufacturing exports (also called Dutch disease), the generation of a wrong feeling of economic security that discourages investments in other assets [5], high levels of corruption and the reduction of the institutional quality [2], an inadequate distribution of human capital among industries [28], the negative effects in innovation systems [20], and the environmental damage [29], [30]. However, the literature on NR also suggests that countries could face sustainable growth if they foster human capital, strengthen their institutions and invest in knowledge and technology [28], [31], [32].…”

Cadenas de valor, comercio exterior y diversidad biológica

“…En contraste, los recursos naturales renovables (por ejemplo, bosques y pesquerías) han mostrado un incremento de escasez. Es decir, pese a su capacidad de regeneración natural, se han hecho relativamente más escasos o en algunos casos se han extinguido (Stavins 2011;Tietenberg 2012 y Lewis; Khan 1995).…”