Question

Clearly establishing property rights for water ownership would result in which of the following? Choose one or more: A. incentive to maintain the property B. the tragedy of the commons C. incentive to conserve the property D. incentive to trade with others E. incentive to protect the property

Answer 1

Answer:

The options chosen are:

B. the tragedy of the commons;

C. incentive to conserve the property;

E. incentive to protect the property.

Explanation:

B. The tragedy of the commons- Open-access regimes can be exploited on a first-come, first-served basis, because no individual or group has the legal power to restrict access. The consequences of open access have become popularly known as what Hardin (1968) misleadingly called ‘the Tragedy of the Commons.’

C. incentive to conserve the property: In addition, clearly defining and assigning property rights should resolve environmental problems by internalising externalities and relying on incentives for private owners to conserve resources for the future.

E. The Incentive to protect the property - The incentives associated with private property rights can help conserve scarce resources: Private ownership entails penalties for premature harvesting or over-harvesting of resources. Private ownership rewards community and individual cooperation. Private ownership rewards conservation and stewardship behaviour.