Common Pool Resources

Unit 5 - Lesson 1
Learning Outcomes:
● Define all terms in orange bold for section 5.1. (AO1)
● Explain the meaning of common pool resources in terms of: (AO2)
○ Concepts of rivalry and excludability
○ The Tragedy of the Commons
● Explain the meaning of unsustainable production. (AO2)
Explain the meaning of common pool resources

Environmental problems can be studied using Common Pool Resources

● Common Pool Resources are resources that are not owned by anyone and
do not have a price associated with them.
● Available for anyone to use without restrictions.

Examples of Common Pool Resources include:

● Air
● Lakes, rivers, fish in the open sea
● Fertility of soil that occurs naturally in nature
● Ozone layer
Explain the meaning of common pool resources

Characteristics of Common Pool Resources (Fish in the open seas)

● Rivalrous
○ Consumption by one individual reduces the availability for others.
■ The consumption of fish from the sea prevents others from
consuming the same fish.
● Non-excludable
○ Resources can be used without or with minimal restriction and are
often overused, degraded or depleted.
○ No price can be charged or any other way of excluding individuals.
○ Anyone can use them without restriction.
■ The fishing for fish is with minimal restriction and many are being
overfished resulting in depleted stocks.
Explain the meaning of common pool resources

Common Pool Resources are Rivalrous and Non-excludable. This combination

results in a threat to the environment.

When cars, factories and homes burn fossil fuels that pollute the the atmosphere
and air they overuse a portion of these resources without paying for the resources.

Fishing industry overuses and exploits fishing stocks (Tuna) without paying for the
use of the resource it results in a negative impact on the marine ecosystem.

The destruction of rainforests in Indonesia for the production of palm oil results in
soil degradation and loss of biodiversity and wildlife.

There are many examples of the overuse of common pool resources resulting in
the depletion and degradation of our environment.
Explain the meaning of common pool resources in terms of
Tragedy of the Commons. (AO2)

Watch the videos below for explanation of the Tragedy of Commons

Explain the meaning of unsustainable production. (AO2)

Environmental Sustainability refers to

the use of resources (land) in ways that
does not result in depleted or lower
quality resources for future generations.

● Sustainable production is using

resources in a way that does not
destroy nor deplete them.
● Unsustainable production is the
use of resources in a way that
reduces the quantity of resources or
quality of those resources.
Explain the meaning of unsustainable production. (AO2)

Sustainable Yield Curve

● Vertical Axis: yield (amount) of open

access resource that is being used or
consumed.
● Horizontal Axis: Number of users of
common access resources.
● Constant Average Yield: as each
additional user is added the total
amount of yield being used or
consumed remains constant.
Explain the meaning of unsustainable production. (AO2)

Sustainable Yield Curve

● Decreasing Average Yield: as each

additional user is added the total
amount of yield consumed
increases at a decreasing rate.
● Absolutely Decreasing Yield: as
each additional user is added the
total amount of yield consumed
absolutely decreases.
● Maximum Sustainable Yield:
maximum use of the resource that
is possible to remain sustainable.
Explain the meaning of unsustainable production. (AO2)

Sustainable Yield Curve

● All points to the left of the

“maximum yield” indicate
sustainable levels of use of a
common access resource.
● All points to the right of the
“maximum yield” indicate
unsustainable levels of use of a
common access resource.
○ Further right of the “maximum
yield” the greater the resource
depletion or degradation.
Explain the meaning of unsustainable production. (AO2)

Non-renewable Resources are resources that do not last indefinitely. There is a

finite supply of the resource.

● Examples: metals, minerals and fossil fuels.

○ Fossil fuels include oil, natural gas and coal.
● Many of these non-renewable resources do not get destroyed by using them
because they can be recycled and therefore can last indefinitely.
● Fossil fuels are destroyed when used and there is no way of recycling this
non-renewable resource.
○ Use of fossil fuels result in high spillover costs including devastating
effects on earth’s atmosphere and climate change.
Explain the meaning of unsustainable production. (AO2)

Renewable Resources are resources

that can last indefinitely if managed
correctly and not overused.

● Examples: forests, fish, wildlife, water

resources, soil fertility and
biodiversity.
● Renewable resources tend to
regenerate over short periods of time
naturally and therefore if managed
correctly can last indefinitely.
● If not managed correctly will result in
depletion of the resource and
unsustainable use.