5. In our discussion about fisheries, we described two main schools (pardon the

Question

5. In our discussion about fisheries, we described two main schools (pardon the pun) of thought about solutions to overfishing. Consider a lake next to a small, remote town. The residents of the town are able to control others" access to the lake. In vour opinion, would it be more appropriate for the national government to create an IFQ to ensure that the residents do not overfish their lake, or do you think that the lake is unlikely to be overfished even without an IFQ? Answer in one paragraph and justify your response using concepts we learned in class.

Explanation / Answer

Since the resident's of the lake can prevent others from accesing it so the lake is not a fully public good , it is excludable in nature . But among the residents it is a public good . Anyone in the town can practise fishing in the lake . Since it is treated like a public good there will be over fishing problem . Each one would like to take the maximum catch share . Also maintainance of the lake would be ignored due to free rider problem by residents . So an Individual Fishing Quota ( IFQ) is necessary to minimize catch share . The IFQ can be tradable but it will ensure that the total catch does not exceed and lead to over fishing .

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