REM 100 Lecture Notes - Lecture 8: Ecosystem Services, Social Capital, Common-Pool Resource

• School: Simon Fraser University
• Department: Resource & Environmtl Mgmt
• Course: REM 100
• Professor: Jonn Axsen

Document Summary

Classes of goods: excludable it is possible to exclude other individuals from consuming the good, rival use of the good by one person detracts from use of the good by another person (depletable) Defining common property resource: not possible to exclude ppl from resource (non excludable, use of resource reduces the ability of other parties to enjoy (rivalrous or depletable) Externality: consumption of common property good produces a negative externality (good is overconsumed, ex. Since ea individual tries to max. own utility; depletion of resource (efficiency loss!) Public policy for tragedy of common pool resources: assign property rights (coase theroem, ex. Tradable quotas for fisheries, hunting on priv. land: piguovian tax, reflect the externality cost, establish coercive laws, ex. Seasonal fishing bans, tech limits: develop self-government (institutions, social capital, ex. Irrigation mgmt, fisheries: works w/ defined boundaries; collective rule design; monitoring and sanctioning possible. Private goods: owner has exclusive rights, only can be used by owner.