Background of the common resource

Background of the common resource - Background of the...

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Background of the common resource A common resource is non-excludable and rival in consumption. Non-excludable means that there is no effective way of excluding individuals from the benefit of the good once it comes into existence. Once in place, you cannot stop someone from consuming the good. And rivalry in consumption means that when one person consumes a product, it is not available for another person to purchase and consume; so, more consumption by me means less of the good available for you. Some examples of common resources are clean air and water as well as the diversity of animal and plant species on the planet (biodiversity). In each of these cases, the fact that the good, though rival in consumption, is non-excludable poses a serious problem. Everyone wants to breathe clean air, but most people abuse it because air is free. In Indonesia, I can barely breathe clean air because whenever I go outside, all I can see are cars, motorcycles, trucks, buses, and industries all over the place. Addressing Air Pollution in Jakarta, Indonesia Nobody can live without air for even a minute, and everybody wishes to breathe the clean air every time they need oxygen. However, air pollution is a problem in big cities, including Jakarta province, the capital of the Republic of Indonesia. The pollution is due to increased human activities, transportation, and the increasing number of industries. The Jakarta Post wrote that The current data show “11.3 million vehicles in the capital, 8.2 million of which are motorbikes with 3.1 million cars. This total is expected to rise to 12.06 million next year [in Jakarta”]. ArcNews Online
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This document was uploaded on 11/02/2011 for the course ECONOMIC ec 202 at Montgomery.

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Background of the common resource - Background of the...

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