Question

Please respond too this statement in 1-2 paragraphs (Explanation please) on on why you agree with it and what other additionaly information you can add too help improve it. , will give positive rating. anything will do please

The public good identified in the video is fisheries. This has a characteristic of a public good because it tends to get treated as a common property resource. Theres a race too fish and who's going to get to the fish first while they are still there. In Iceland as a result from overfishing the herring stocks basically disappeared completely they were overfished. The government stepped in but still had an overfishing problem now with the cot. They limited the vessels but they were still overfishing then what they were allowed too. They solved this problem by starting an ITQ system where each vessel would get its own fishing quota in the fisheries. They established property rights in their fisheries which gave fishers incentives to look after fish stocks. It is considered better than taxing because the fishers could sell, buy or trade their permits to others. This means that the professional fishers will buy permits and get rid of the ones that don't know how. This is a way to maximize the effect use of scarce resources because it turns it into a competitive market. They limit the total amount of fish taken out of the water in any one given year but can still be done in a competitive way because the market in traceable permits.

Answer 1

Fisheries is a common resource . A common resource is non-excludable but rival in consumption . They are available free of charge to anyone . But they are rival because one person's use of a common resources reduces the chance for another person . A fishery is common resource because anyone can use it but fish is limited and needs time for further breeding and replenishment of stock . So there is rivalry in consumption . This leads to over fishing . Everyone wishes to grab their share as fast as possible but do not think about conservation since it is common property . This problem is called free rider problem .

Fishing quota helps to solve the problem to some extent . Establishment of property rights makes fisheries private good which are both excludable and rival . People when get property right try to conserve the resource because they treat it as their own private property . Property rights and quota can solve the problem very effectively by limiting fishing and also providing incentive to fishers for conservation .

Taxation only can lead to higher prices and inflation . Also taxation only means that fishers will try to fish more and more or find out other methods to evade taxes . On the other hand tradable permits and quotas can limit fishing .