Challenges of Managing Common Resources

Common goods are those natural or man-made resources that serve all members of a particular community and its institutions. Unlike private goods such as cars or mobile phones, all members have free access to commons, i.e., the goods cannot simply be fenced off. As a result, such goods tend to be overused, leading to a loss of welfare-the tragedy of the commons. In this chapter, we discuss the concept of the tragedy of the commons, why it is relevant to global and local environmental problems, and how the social dilemma might be resolved.