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Summary - ECO1010F (ECO1010F)

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Complete notes for economics first year UCT.

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July 23, 2025
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, UNIT 4 SOCIAL INTERACTIONS

Climate change conflict
&
major global issue : The Stern Review on the Economics of Climate Change (2006) :




early action is crucial

This means
taking drastic steps to cut
greenhouse gas emissions ,
reduce consumption of


energy intensive goods, using alternative
energy technologies
&
We cannot continue with business as usual

&
Businesses , governments ,
individuals will pursue their own self interests (maximise own



profits) at the expense of others and future generations



All countries have different interests and are at different stages of development (some have the

means to contribute while others do not

Issue of climate change = social dilemma




Social Dilemma

Occur when we don't take into account the effects of our actions on others

personal decisions affect other people's utility
Conflict between personal gain and some common good



The
Tragedy of the Commons

1968 : Garret Hardin published an article about social dilemmas ↑


Argument : resources that are not owned
by anyone (common pool resources) are
easily
over-exploited unless access to the resource is controlled in some
way
Problem in Social dilemmas =
Free-rider problem ,
benefits from others efforts and


provides none of their own effort
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