JEL Code
Q20, P14, Q54
Abstract
Privatization of environmental resources is a promising approach for mitigating the tragedy of the commons. The present paper focuses on the impact and theoretical underpinnings of privatization within economic structures. The first part lays out a strong ethical case against state ownership, rooted in the belief that the state's claim to ownership inherently involves coercion, which likens taxation to theft due to its compulsory nature. The second part provides evidence that privatization leads to enhanced profitability and efficiency across sectors. The third part discusses the necessity of robust corporate governance and legal reforms post-privatization to ensure environmental protections are not compromised in the pursuit of economic benefits. As demonstrated by successful corporate practices, profitability can coexist with ecological mindfulness when companies are incentivized to protect the environment.
Recommended Citation
Theriot, Maximilian and Block, Walter E.
(2024)
"Navigating Past the Tragedy of the Commons,"
Journal of New Finance: Vol. 3:
No.
3, Article 1.
DOI: 10.46671/2521-2486.1036
Available at:
https://jnf.ufm.edu/journal/vol3/iss3/1
Submission Date
6-27-2024
Publication Date
10-19-2024