Free-market environmentalism combines the ideals of environmental protection with the principles of a free-market economy. It acknowledges that markets can provide powerful incentives for conservation and environmental stewardship, and that private property rights and contracts can be leveraged as tools to protect the environment. But how exactly does this work?
The tragedy of the commons is a concept that describes the depletion or degradation of shared resources that are not owned or managed by any individual or group. It occurs when multiple individuals, each pursuing their own ends, overuse or exploit a shared resource to the point of depletion, resulting in harm to all users of that resource in the long run.
Because no one can tell a plausible story about market exchange or transaction costs with future generations, no one can show that climate change is an external cost resulting from a market failure.
A recent piece in The New York Times Magazine explores the world of Minecraft and how children interact with the game. Minecraft is a game which allows players to build complex creations in a virtual world, either on their own or in shared spaces with other players. The gameplay combines a number of different elements: […]
In this quote Aristotle is providing insight to what economists would later call The Tragedy of the Commons. What is the Tragedy of the Commons? Professor Sean Mulholland lays it out below: