The Tragedy of the Commons
- Science Holic
- Aug 6
- 3 min read
Author: Bryan Lin
Editors: Justin Tai, Ethan Tai
Artist: Alicia Chen
The Tragedy of the Commons describes a situation where each individual acts only in their own self-interest, which leads to the depletion or degradation of a shared resource, despite the fact that it's in no one’s long-term interest for this depletion to occur. This concept, originally presented by ecologist Garrett Hardin in 1968, uses the metaphor of herders sharing a common pasture. Each herder benefits from adding more and more cattle to graze, however, if everybody does this, the pasture becomes overused, and therefore is destroyed, hurting everyone. This "tragedy" is so detrimental because even though each person likely acknowledges the collective outcome will be harmful, the individual incentive to maximize personal gain leads to the resource's destruction. But why is this concept, which originated so long ago, still relevant today? Why is it so important that we recognize the tragedy of the commons, even to this day? Why exactly does it happen?
The tragedy of the commons has shockingly become more relevant than ever in today’s world. It is extremely important to recognize how this situation is currently affecting our world so that we can understand this phenomenon and react accordingly to look for alternatives to help preserve a delicate balance. Some examples of the tragedy are present in nearly all facets of life in the twenty-first century, the largest and potentially greatest example being climate change. Every country benefits from burning fossil fuels for economic growth, but collectively we're destabilizing the global climate system. Ocean acidification, overfishing, and deforestation are all examples of this tragedy in action, but if these outcomes are so harmful and we can recognize that harm, why does it continue to happen?
This tragedy occurs due to an extreme difference in cost and benefits, which relates back to the scenario of the tragedy that Hardin originally wrote about. A large corporation causing the harm reaps all the benefits while bearing only a fraction of the costs, which are spread across everyone. This creates what economists call "negative externalities”, costs imposed on others who are not involved in the transaction. These negative externalities are often invisible, in the sense that a CEO living in a 24/7 air-conditioned penthouse is less affected by warming temperatures, making them easier to ignore. A coal plant's profits appear on quarterly earnings reports, while respiratory illnesses and climate damage may not appear for years or decades.
But does that mean humanity is doomed to over-exhaust the commons in favor of their own incentives instead of considering impacts? Renowned economist Steven Levitt once said in his book ‘Freakonomics’, “Following incentives is just a part of human nature, so what can we do?” Despite this, there are a few solutions that can be considered that don’t contradict human nature. The key lies in creating systems that make sustainable choices the obvious or profitable choice for individuals. This can happen through several methods, whether it be through government regulations that establish clear rules and penalties, like carbon taxes that make polluting expensive or fishing quotas that prevent overharvesting, or market-based solutions that can harness economic incentives and harm companies that overstep a sustainable limit.
Citations:
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The Investopedia Team. (2023, September 25). Tragedy of the commons. Investopedia.
Hardin, G. (1968). The tragedy of the commons. Science, 162(3859), 1243-1248.
https://math.uchicago.edu/~shmuel/Modeling/Hardin,%20Tragedy%20of%20the%20
Levitt, S. D., & Dubner, S. J. (2005). Freakonomics: A rogue economist explores the hidden side of
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