The economics of ocean resources Essay Example | Topics and Well Written Essays - 1000 words

The economics of ocean resources - Essay Example In summary, Hardin’s article addresses the exploitation of common resources due to individuals self utility maximisation goals. Naturally resources are limited while human wants are not only unlimited but also recur. Rationally, individuals strive to maximally benefit from the available resources, which translate to exploitation of the resources. Hardin notes that, the benefits accruing from the use of these resources accrues to a particular individual while the economic loss associated is shared by the community. The rise in population worsens the impact. Therefore, to a single individual, over- use of the resource is beneficial despite harming the community and hence making greed rational. According to Hardin (1968), freedom to access resources enhances the tragedy. For that reason, Hardin advocates for increased government involvement in utilization of public resources and supports his arguments with failure of the’ invisible hand’ to generate a socially optim al solution in several aspects. Economic theory suggests that increased consumption boosts productivity and increases social welfare. The contradictory result that exists in consumption of common resources, especially the exhaustible ones, is what Hardin referred to as the tragedy, and expounded the definition of tragedy to cover both unhappiness and remorseful actions in life. According to Hardin, and many other scholars, the solution to the commons problem must involve an external controller. Government involvement and privatisation have been marked as the most effective solutions. However, given that the problem is caused by individual’s greed and affects the same individuals, collective action can be termed as not only effective but also a cheaper mode of reducing the tragedy. According to wade, collective action refers to the harmonization of actions by a group to achieve a common interest. As noted earlier, individuals are