The Tragedy of the Commons, Livestock Cycles and Sustainability
The Tragedy of the Commons, Livestock Cycles and Sustainability
This paper revisits the tragedy of the commons and examines the conditions under which externalities contribute to livestock cycles. Using a stylised intertemporal model capturing the main characteristics of African livestock producers, we show that externalities magnify livestock cycles triggered by occasional droughts. This is true even when producers are fully rational. Two forces fuel such cycles: producers' concerns with consumption smoothing; and expected capital gains when demand for livestock products is inelastic. Implications regarding African livestock production are discussed.
CITATION: Fafchamps, Marcel. The Tragedy of the Commons, Livestock Cycles and Sustainability . Oxford : Oxford University Press , 1998. Journal of African Economies Volume 7 Supp 3 October 1998 pp. 384-423 - Available at: https://library.au.int/tragedy-commons-livestock-cycles-and-sustainability