Answer to Question #124592 in Microeconomics for Awinira Patricia

Question

suppose the government wants to control the use of commons,what method exist for achieving the use efficient level of use

Answer 1

The are three main methods that the government can use to ensure efficient use of commons:

1. Regulation. Government can limit or control the amount of common good available for use by every individual.
2. Privatization. The government can convert commons into private property and provide the new owner terms to ensure its sustainability.
3. Internalizing externalities. This involves the government ensuring that the users of the resources pay for the consequences for their use of the resources. For instance, individuals pay for air and water pollution.