Common Resources: Meaning, Examples & Types (2024)

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Common Resources Meaning

The meaning of common resources is that they are resources that are accessible to everyone but cannot be consumed by everyone at the same time. You cannot prevent others from using a resource, and as they use it, less of it becomes available to you. Common resources are also known as commons.

Common resources are non-excludable goods, which means that no one can be prevented from using them. Many natural resources are considered non-excludable goods because there is no way of preventing others from using goods such as air or water from a river. An excludable good would be good that others can be prevented from using, such as airplanes, restaurants, or anything that requires payment or exchange to use.

Common resources are also considered rival in consumption, meaning if they are used by one party, another party cannot use them. Food, clothing, and even a chair can all only be used by one person at a time. A good that is nonrival in consumption is the sewage system installed in the community. Everyone can use it, and multiple people can use it at the same time.

Common resources definition

Common resources (commons) are resources that are accessible to everyone but cannot be used by everyone at the same time. They are non-excludable goods that are rival in consumption.

Common resources can be thought of in terms of units. Everyone being able to access a unit is what makes it non-excludable. No one else being able to use the unit at the same time makes it rival in consumption. No two people can drink the same molecule of water or breathe in the same air molecules.

Common Resources Examples

Common resource examples include:

• Fisheries: Fish stocks in the oceans are a common resource, as they are owned by no one but are available for use by many.
• Forests: Forests are often owned by governments, but their use is available to many, including for logging, hunting, and recreation.
• Air: The atmosphere is a common resource that is available to all living beings on Earth.
• Public parks: Public parks are commons that are available for everyone to enjoy.
• Water resources: Rivers, lakes, and aquifers are common resources that are used for drinking, irrigation, and industry.

These are all resources that are not exclusively owned by any one person. Public land is owned by the government, so no one can just come and lay claim to it. There is not one person or group of people that can prevent others from accessing it unless the government as a whole decides to sell the land or make it illegal for public use. Forests and lakes are much the same, where they are not owned by any one person. Of course, people can own pastures, forests, and lakes and can use the land as they wish for the most part, but then it would be a private good.

Public land

Forests

Forests are an interesting common resource since most countries have placed some sort of regulation on who can log the trees. Historically, especially when the United States was in its infancy, lumber was free for all as long as you had the tools and the strength to harvest it and transport it to where you wanted it to go. Back then it was more of a public forest. Now, unless you are only cutting down firewood for personal use or as a Christmas tree, the United States government no longer allows private citizens to cut down trees, and even then you need a permit.

Public forests are an example of common resources because the trees in the forest do not belong to one single person. When you cut it down and build a house with it or chop it for firewood, no one else can build their house with it or burn it in their fireplace.

Fisheries

The fishing industry is both domestic and international. Here, unlike public lands and forests, the resource can cross borders and go wherever it pleases. This means that countries have to coordinate their policies to regulate the industry to prevent conflict.

Characteristics of Common Resources

Characteristics of common resources are that they are nonexcludable and rival in consumption. Common resources are often but are not limited to, natural resources, like having a variety of animals and plants (biodiversity), clean air, and water. These two characteristics can pose issues for the resource itself because many people want to use them but they cannot all use them at the same time. As a result, they are often faced with overuse and become subject to regulation so that they are preserved.

Excludability

Goods can typically be classified as excludable or nonexcludable. If a good is excludable it means that some people can be prevented from using this good. Whoever supplies the good can prevent people who do not pay for the good from accessing it or using it. Common resources are non-excludable resources. This means that anyone can use them, so no one can be excluded from using them. This is important because for some resources, it is nearly impossible to regulate their use and some people might not be able to afford to partake. If all roads were to become an excludable resource then those who could not afford to pay to use them would suffer, especially if there is no alternative.

Rival in consumption

Common resources are considered rival in consumption because only one unit can be used by one person at a time. A resource is nonrival in consumption when it can be used by multiple people at the same time such as the internet or the public sanitation system. Common resources cannot be used by multiple people at once, which makes them scarce the more people use them. A road is rival in consumption because there no one can be in the same spot as you on the road without causing an accident. The more cars are on the road the scarcer the resource becomes because not every car and bicycle fits on the road at the same time.

Types of resources

Table 1 below will help you gauge where the common resources sit compared to other types of resources based on their characteristics.

Table 1. Types of Resources - Vaia

To learn more about public goods, read our explanation - Public Goods

Types of Commons

Common resources can be categorized into types in several ways, considering the origin of the resource (man-made and natural), renewability (renewable and non-renewable), and level of governance (from local to international).

1. Man-made common resources would be irrigation systems, wells, artificial ponds, roads, parking spaces, and boat ramps. Man-made resources are usually created and maintained by the government which means they can be produced over time and are not as finite as naturally occurring resources.
2. Natural common resources are things like rivers, pastures, forests, wild game, and fishing. Naturally occurring resources like forests take much longer to replenish, even with the replanting of trees after the land has been logged.
3. Renewable common resources: These are resources that can be replenished naturally over time, such as forests, fisheries, and freshwater.
4. Non-renewable common resources: These are resources that cannot be replenished, such as fossil fuels and minerals.
5. Local common resources: These are resources that are managed and used by local communities, such as community gardens and neighborhood parks.
6. National common resources: These are resources that are managed and used by a country as a whole, such as national parks and fisheries.
7. International common resources: These are resources that are shared by multiple countries and require international cooperation and regulations to manage, such as oceans and the atmosphere.

What are common resources?

Common resources are goods that are accessible to everyone but cannot be used by everyone at the same time. They are a nonexcludable good that is rival in consumption.

What are the characteristics of common resources?

The characteristics of common resources are that they are nonexcludable and that they are rival in consumption.

What are examples of common resources?

Examples of common resources are: public lands, public forests, clean air, and water.

What are types of common resources?

Types of common resources are man-made ones like roads, parking spaces, and irrigation systems. Another type is natural ones like rivers, forests, and pastures.

What is the tragedy of the commons?

The tragedy of the commons is when common resources are depleted because everyone who had access to the resource used it in their own self-interest, resulting in it being overused.

What is the difference between public goods and common resources?

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• Checked by Vaia Editorial Team