We all know air pollution is a prominent issue in many countries across the world. But why does it seem to keep getting worse?
Thinking about a specific aspect of this issue, one reason air pollution is so bad is because clean air is a common access resource or common pool resource. Common pool resources are any resources that are non-excludable yet rivalrous. Non-excludable means that anyone can use it and no one can prevent others from utilization. Rivalrous means that one person’s usage will reduce the quality and availability for others.
Another example of this is shared Wi-Fi in cafes. When lots of people are using it, or one person is playing a high-definition video-game, the internet speed slows down for everyone else on the same network. Everyone can connect to the internet, but one person’s use can reduce the quality for others.
Going back to air pollution, unless there are restrictions, people and firms cannot be stopped from polluting the air because it’s non-excludable. Since individuals generally act on their own self-interests (this is part of rational consumer behavior), they don’t consider the impacts to others of their actions and they continue polluting. As a result, their pollution degrades the air quality for others which is why this resource is rivalrous.
Essentially, common pool resources tend to be overused leading to consequences like environmental damage, societal harm and, as we learned, pollution.