Supply and Demand: The environment

The environment is full of both depletable and non depletable resources. Being considered a “common good” these resources are often taken for granted. Many of these are fixed and limited in nature. These include items such as water, land, and natural gas. The overuse of these common goods may eventually lead to their destruction. There is a scarcity but people are often so worried about their profit and their “minor” impact that they fail to realize the big picture. Common goods are in high demand. 

Solutions to this oblivious state of mind are often taken into consideration by the government. Charging corporations (taxing) for their pollution of the air and water. Charging people for land and natural gas. Through regulations and taxation the govt puts a limit on these resources, challenging consumers to consider their wants, needs and, well, utility. They make available the supply based on the demand and can raise the prices based on these wants/necessities.