Common Pool Resources (CPR) & Negative externalities of unsustainable production

Take fishery industry in the open sea as an example.

The (S=MPC) curve represents the

Real World Example:

Palm oils industries

The palm oil industry was responsible for at least 39% of forest loss on the biodiversity-rich island of Borneo since 2000 till now.

Some palm oil farmers have been accused of using slash-and-burn methods to clear land for planting. The palm oil industry has long been blamed for encroaching on rain forests in Borneo, endangering wildlife such as orangutans and pygmy elephants.

The data comes as forest clearance fires in Borneo and parts of Indonesia spread smog across Southeast Asia, causing air quality to drop to unhealthy levels in neighboring Singapore and Malaysia.