A Tragedy of Commons!

This is not a Shakespearian play, but a theoretical economic issue of intergeneration equality. In general terms the tragedy of the commons refers to an economic and environmental outcome where our finite resources will be completely used or irreversibly damaged by our unlimited and unrestrained ‘wants’.

The development of this idea comes from the ‘fundamental economic problem’ which is a basic assumption about human nature and our earth's resources. The problem states that our ‘wants’, as humans, are limitless but our resources to fulfil these wants are limited which forces us to consider the opportunity cost of every action we undertake and what we forgo in order to satisfy these wants.

To understand this problem it is easier to examine real life issue and examples of possible tragedies that we or future generations may face:
· Depletion of Energy Resources
· Deforestation
· Overfishing and water pollution
· Air pollution and global warming
· Overpopulation

These problems, in the past, have been looked at in an exclusively short-term perspective and only recently have economists and politicians really begun to understand the full impact of our actions on future generations. This is the idea of ‘intergenerational equality’, a notion that our actions now should not impede the living standards of the next generations.

In order for achieve this level of equality between generations, we as a global society need to look at becoming more self-sustained and efficient in our use of resources. This is not only a goal for our governments on a global scale, but should be a goal achievable on an individual level as well. Minimising our personal impact on the environment is the first step in avoiding this tragedy of the commons.



Let us know what you do to minimise your environmental impact by commenting bellow!