Question

"Suppose a common resource—wood in a public forest—is being overused because residents consider the benefits of gaining firewood or wood for building but do not account for the cost of deforestation when chopping down trees. What could be done to prevent wood in the forest from being​ overused?

To prevent overuse of the common​ resource,
A.the government could subsidize chopping down trees.
B.the community could establish norms where social pressure limits deforestation.
C.the community could create transaction costs to private bargaining.
D.the government could make a binding commitment to keep the forest lands public.
E.the community could establish social customs prohibiting the use of permits required to chop down trees.

Answer 1

To prevent overuse of wood in public forests, the government can regulate usage through permits and catch limits, and the community can establish social norms that promote conservation. Other strategies include afforestation, reforestation, and allowing natural forest regeneration.

Step-by-step explanation:

Preventing Overuse of Wood in Public Forests

To prevent the overuse of wood in public forests, several strategies could be employed. One effective approach would be for the government to regulate the usage of forest resources, similar to the way fishing regulations work through a permit system, catch limits, and reporting requirements. Options include:

• Establishing a permit system requiring individuals to obtain a permit before harvesting wood.
• Enforcing catch limits on the amount of wood that can be removed.
• Creating a reporting system that tracks the amount of wood harvested.

Another strategy is for the community to develop social norms or pressures that discourage overuse or promote sustainable harvesting practices. For example, the community could come together to:

• Agree on and enforce sustainable harvesting levels.
• Encourage reforestation and afforestation efforts.
• Socially sanction those who violate community-defined rules.

In addition, the community or government can invest in afforestation, and reforestation, or allow for natural regeneration of the forests to enable recovery from deforestation. However, it is crucial to note that privatizing the resource or subsidizing tree cutting would not be effective methods for conservation and could exacerbate overuse.