Common-pool resource

Common-pool resource (CPR), also known as a common property resource, is a type of good which is available to all members of a society or community, and which provides a user with benefits, but which also suffers from overuse or underinvestment. These resources are typically natural or environmental resources, such as water, fisheries, forests, and wildlife.

Characteristics

Common-pool resources have two key characteristics:

1. They are non-excludable: It is difficult to prevent anyone from accessing and using the resource.
2. They are rivalrous: The use of the resource by one individual reduces its availability for others.

These characteristics can lead to problems of overexploitation, also known as the Tragedy of the commons. This occurs when individuals use a common-pool resource to the extent that its availability for future use is threatened.

Management

The management of common-pool resources is a major focus of resource management and environmental policy. Strategies for managing common-pool resources include:

1. Cooperative management: This involves the users of the resource agreeing to rules and regulations that limit use and promote sustainability.
2. Government regulation: This involves the government imposing rules and restrictions on the use of the resource.
3. Privatization: This involves transferring the resource from public ownership to private ownership.

Examples

Examples of common-pool resources include:

1. Air: The air we breathe is a common-pool resource. It is non-excludable and rivalrous, as pollution by one party reduces the quality of the air for others.
2. Oceans: Oceans are a common-pool resource. They are non-excludable and rivalrous, as overfishing by one party reduces the availability of fish for others.
3. Public parks: Public parks are a common-pool resource. They are non-excludable and rivalrous, as overuse by one party can lead to degradation of the park for others.

See also

• Public good
• Tragedy of the commons
• Game theory
• Collective action