Overview

Students are often puzzled over the continued decline of the animal populations that we profess to value and want to preserve. Most students are moved by the plight of lions and tigers and bears—and elephants. Unfortunately, we often allow—or even encourage—students to explain the threat of extinction as a result of "bad" people en-gaged in evil, ignorant, or thoughtless pursuits. Besides leaving students feeling fearful and powerless, this explanation deprives them of an appreciation of how societies can formulate the rules of the game in such a way as to effectively encourage behaviors that benefit society as a whole. By contrast, an understanding of incentives, the tragedy of the commons, and property rights gives students a powerful tool for analyzing and addressing everyday problems that matter to them.

Teaching Activity

Initiate a class discussion about the issue of endangered species. Ask students to share their knowledge about the various species that are currently threatened or endangered and about efforts, programs, and policies that have been adopted in efforts to prevent extinction. (This discussion may be enhanced by reference to newspaper reports or literature from advocacy groups dedicated to protecting endangered species.)

End the large-group discussion by proposing that individual incentives in the presence of a common resource can result in socially inefficient outcomes. Where this is the case, government intervention (specifically, the introduction of property rights) can improve the economic performance of society.

Explain that student discussion groups will be responsible for solving a mystery from a set of clues that you will provide. Divide the class into two or three discussion groups. Provide each with a copy of the mystery (Handout 1) and a set of clues (Handout 2). (Withhold the extra clue for now.)

Objectives Students recognize that the assignment of property rights creates incentives for the preservation of endangered species and that those incentives are missing in programs and policies that treat endangered species as common property. Students practice distinguishing useful information from that which, while true and/or interesting, offers little insight into the problem being studied. Time Required 1-2 class periods Materials Handout 1 -- The Mystery of the Disappearing Elephants Handout 2 -- Mystery Clues Run off enough sets of clues—each set on a different colored paper—for each discussion group. Cut sets of clues into strips, one clue per strip. Alternately, copy the clues onto sets of colored index cards, one clue per card. (Clue sets can then be collected and used again.)

Read the mystery to the class. Then distribute the clue strips among the group members so that each member has at least one clue. Give these directions to the students:

1. Select a group member to re-read the mystery to the group.

2. Share clues, proceeding in a round-robin fashion.

3. All the clue strips contain true or accurate information. Each group's task is to use the clues to solve the mystery. (Note: This is not the same as determining which clues are true and/or relevant.)

4. Be prepared to explain your solution and your clue selection.

Monitor the group discussions. If groups are having trouble, offer the extra clue. If groups reach a firm conclusion quickly, ask them to determine whether the extra clue supports or undermines their conclusion.

Reconvene the class. Ask a spokesperson from each group to report on the group's solution to the mystery. Discuss the solutions, using these follow-up questions:

1. Who "owns" the elephants in Kenya and Zambia? Everyone owns them—which is the same as no one owning them.

2. Who bears the costs of keeping the elephants alive? The villagers whose crops are destroyed and whose water supplies are used by the elephants.

3. Who reaps the benefits of keeping the elephants alive? The tourists who come to see the elephants, the governments that may receive tax revenue or public relations benefits, and the firms in the tourist industry.

4. In what way is the situation of the elephants in Zambia and Kenya an example of the tragedy of the commons? Because no one owns the elephants (and could therefore benefit from ownership), no one has an incentive to preserve them and to figure out a way to make a profit from their existence.

5. Why don't the villagers in Zambia and Kenya help stop the poaching? They have no incentive to do so. Elephants are a burden—a cost that is actually reduced by poaching.

6. Why do the poachers continue to hunt elephants, knowing that they could be killed by ranger patrols? The soaring black-market price created by the CITES ban gives them an incentive to accept the risk of being shot by patrols.

7. In economic terms, what is distinctive about the relationship of the villagers to elephants in South Africa, Botswana, and Zimbabwe? The villagers in these countries have been promised some property rights to elephants when the herds become large enough to harvest. The villagers are given the right to "sell" an elephant to a hunter. This drastically changes their behavior: They now have an incentive to protect the elephants.

Post on the board or overhead each group's list of necessary clues. If there are differences among the clue lists, tell the class that they must reach a consensus. Moderate a class discussion in which group members challenge the clue lists of other groups and support their own list until a consensus is reached. If there is an initial consensus on the list of necessary clues, challenge the class to convince you that the mystery could not be solved without all the clues on their consensus list.

As students discuss the importance of the clues, encourage them to make their economic reasoning explicit by using the appropriate economic terminology. Since they have already identified the effects of the incentives and private property on people's use of common resources, they must justify their inclusion of the clues by showing how they illustrate these concepts.

Clues 2, 8, and 10, while true, do nothing to help solve the problem. Clues 1, 3, 4, 7, 9, 12, and 13 offer relevant information that helps us to understand the specifics of the situation. But students who truly understand the implications of common ownership vs. private property can effectively argue that only clues 5, 6, and 11 are absolutely necessary to solve the mystery.

Here's an optional extension to this lesson: Assign individuals, pairs, or small groups of students to use their understanding of incentives and property rights to devise a plan for protecting another endangered species. (Animals that migrate or that have much larger habitat ranges—whales, birds, etc.—present greater challenges.)