Chicago's Water Problems

1234 Words3 Pages

All of the case studies presented show a unique mixture of issues stemming from property rights, public goods, externalities, interjurisdictional spillovers and a fantastic illustration of Coase Theorem and Hardin’s Tragedy of the Commons. Water usage and rights are a pertinent and urgently growing issue that often pits economic development, sustenance and environmental health externalities at odds with each other. Water is needed to sustain life and ecosystems and property/jurisdictional rights regarding bodies of water are hard to distinguish. Uniquely the Delaware and Maryland cases had a longstanding royal charter or formal ownership of the water granted to them but they were still plagued with disputes and constant litigation …show more content…

Many of the cases had a slight element of the commons, the invasive species case showcases Chicago acting in its own best interest to keep up the leaky canals despite opening up the opportunity for the Great Lakes to be harmed. When the case went to court the Solicitor General suggested that letting the fish in could be harmful but this was speculative information and it may or may not occur now. Since this externality of Chicago’s water diversion for canals will likely occur a little further in the future, Chicago will continue to act in its own best interest and maximize use of the Great Lakes despite being Pareto inefficient and almost certainly causing negative externalities in the near future. The Tragedy of the Commons plays out classically in the case with Atlanta consuming substantial amounts water while Alabama and Florida complain of negative externalities such as droughts and the possible extinction of federally protected species as a direct result of their irresponsible consumption of water. While not as explicit as the cases mentioned above, all cases tend to fall prey to the Tragedy of the …show more content…

Tiebout claims that a consumer voter will choose a community to live in that satisfies their preference for public goods, and their choice to stay or go articulates their demand for a public good. This model has it limits i.e. its inability to be extrapolated to a federal level and the inability of the low income to articulate interest and satisfaction. Nonetheless it has shown to play out on a local level, as is seen in the article referencing Montgomery county. Those who work in Montgomery county ideally would like to live there, but due to the higher costs of public services chose to live in neighboring counties that they likely feel offers a preferable public service cost for similar services. The same consumer voter ideas is seen in the articles referencing age restricted 55+ communities. The adults that chose to move to these communities prefer public services catered to their selves as opposed to higher costs for community services that they do not utilize. All of the articles illustrate the need of state and local governments to provide public services and the tension between high expenditures and the need for acting in self or communal

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