1. THETRAGEDY OFTHE ENVIRONMENT
April 11, 2013
The situation of the environment around the world is deteriorating. We live with problems such as deforesta-
tion, increasing contamination and species in danger of extinction from our planet.
Is it possible to think of solutions different from the ones habitually contemplated? Are there any mechanisms
of free market to improve the current conditions of the environment?
TRAGEDY?
SOME USUAL SOLUTIONS...
The basic principle of the environmental cause is that the damages of the resources generate negative effects to everyone. The key
differences in the environmental policies try to identify how to overcome the problem.
For many years, people have believed that the best solutions come from the Government [or State]. Special regulations regarding
emissions, higher taxes to polluting substances, subsidy to eco-friendly technologies and prohibition to sell certain goods are a few
examples of those measures.
Even though there are good intentions behind these policies, they have not been able to reduce the problem. The policies are not
based in studies and in some cases respond to opportunism since they grant privileges to certain industries. In addition, they have
not frame the discussion in a key point: the incentives.
PROPERTY RIGHTS TO STOP EXTINCTION?
The elephants are in danger of extinction due to the ivory tra-
ffic, even though their hunting is forbidden.
In countries, like Namibia and Zimbawe, property and hun-
ting rights over elephants were created and in the last 30
years the elephant population has tripled.
Why? Because people find out that the protection of elep-
hants is more beneficial for them than their total extinction.
A private interest can protect entire species!
WHAT INCENTIVES?
The defenders of the free market and individual liberty say that a form of protecting the environment is through the promotion of the proper-
ty rights, since these rights transform the resources in goods that generate a value if they are preserved.
If a scarce good is yours, and you know that you can obtain a personal benefit from it, it is very likely that you will be taking more care of it
than if it was not yours. If you know you can exchange it or use it, you surely will utilize it a more rational way rather than consume it totally.
Do these principles apply to El Salvador? The conservation of a lot of species, the protection of ecosystems as jungles or beaches and re-
sources less contaminated depend, mostly, on the incentives that the individuals and corporations have, and thus they make good use of the
resources. In the last years, civil organizations together with voluntary efforts, free from any governmental force, have demonstrated in El
Salvador that these principles apply.
Where have we seen these principles? Please find below two interesting cases for your thought
THE TRUE TRAGEDY
Why is a square dirty after a mass event? Who is responsi-
ble, if the square does not belong to anyone?
The Public Choice school introduces the following term: the
tragedy of the commons which says that when a good
does not belong to anyone, there are no incentives to take
care of it and people are likely to exploit it irrationally.
Could this be an explanation for the deterioration of the en-
vironment?
![THETRAGEDY OFTHE ENVIRONMENT
April 11, 2013
The situation of the environment around the world is deteriorating. We live with problems such as deforesta-
tion, increasing contamination and species in danger of extinction from our planet.
Is it possible to think of solutions different from the ones habitually contemplated? Are there any mechanisms
of free market to improve the current conditions of the environment?
TRAGEDY?
SOME USUAL SOLUTIONS...
The basic principle of the environmental cause is that the damages of the resources generate negative effects to everyone. The key
differences in the environmental policies try to identify how to overcome the problem.
For many years, people have believed that the best solutions come from the Government [or State]. Special regulations regarding
emissions, higher taxes to polluting substances, subsidy to eco-friendly technologies and prohibition to sell certain goods are a few
examples of those measures.
Even though there are good intentions behind these policies, they have not been able to reduce the problem. The policies are not
based in studies and in some cases respond to opportunism since they grant privileges to certain industries. In addition, they have
not frame the discussion in a key point: the incentives.
PROPERTY RIGHTS TO STOP EXTINCTION?
The elephants are in danger of extinction due to the ivory tra-
ffic, even though their hunting is forbidden.
In countries, like Namibia and Zimbawe, property and hun-
ting rights over elephants were created and in the last 30
years the elephant population has tripled.
Why? Because people find out that the protection of elep-
hants is more beneficial for them than their total extinction.
A private interest can protect entire species!
WHAT INCENTIVES?
The defenders of the free market and individual liberty say that a form of protecting the environment is through the promotion of the proper-
ty rights, since these rights transform the resources in goods that generate a value if they are preserved.
If a scarce good is yours, and you know that you can obtain a personal benefit from it, it is very likely that you will be taking more care of it
than if it was not yours. If you know you can exchange it or use it, you surely will utilize it a more rational way rather than consume it totally.
Do these principles apply to El Salvador? The conservation of a lot of species, the protection of ecosystems as jungles or beaches and re-
sources less contaminated depend, mostly, on the incentives that the individuals and corporations have, and thus they make good use of the
resources. In the last years, civil organizations together with voluntary efforts, free from any governmental force, have demonstrated in El
Salvador that these principles apply.
Where have we seen these principles? Please find below two interesting cases for your thought
THE TRUE TRAGEDY
Why is a square dirty after a mass event? Who is responsi-
ble, if the square does not belong to anyone?
The Public Choice school introduces the following term: the
tragedy of the commons which says that when a good
does not belong to anyone, there are no incentives to take
care of it and people are likely to exploit it irrationally.
Could this be an explanation for the deterioration of the en-
vironment?](https://image.slidesharecdn.com/creo-20que-20deberias-20saber-20-20medio-20ambiente-20-20ingl-c3-89s-130731163100-phpapp01/85/creo-que-deberias-saber-medio-ambiente-ingls-1-320.jpg)
