Overexploitation of the island's resources and deforesting the island for fuel, growing crops and transporting the famous monolithic statues, cumulated in the demise of Rapa Nui society. We suggest you start your journey of understanding here. The tragedy of the commons is a reoccurring problem facing society. Road congestion, overgrazing, resource depletion and pollution are the result of rising population and maximising self-interest. This guide will help you understand how problems arise and some of the measures required to solve them.
External Costs Following on from the tragedy of the commons is external costs.
We expand upon the tragedy of the commons looking at some possible solutions and measures to conserve resources. External costs are the costs borne by society and the environment emanating from the actions of others. The inverse of an external cost is an external benefit. The most significant example of an external benefit is land value. We look at how land value arises out of population growth and an increase in demand for resources.