Economics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter ST11, Problem 1CQ
To determine

The role of Individual Transferable Quotas in reducing the risk associated with fishers.

Expert Solution & Answer
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Explanation of Solution

Limits on fishing season is used a measure to control overfishing in the oceans, while this type of restrictions induces the fishers to do dangerous race to fish. The individual transferable quota (ITQ) is one of the strategy to solve both of these problems. The ITQs give fishers proprietorship of a portion of the allowable fish catch. Therefore, fishers can catch their own quota without fear of losing their share. This rights-based fishing also reduces the problem of overfishing.

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Chapter ST11 Solutions

Economics: Private and Public Choice (MindTap Course List)

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