Table of Content 1. How does ITQs Help Reduce Overfishing? 2. How to Allocate Quotas? 3. Challenges with ITQs 3.1 What is Bycatch? 3.2 What is High Grading? 4. How to Solve the Challenges of ITQ We've discussed how common resources te…
A common resource is a resource that has two characteristics. Non-excludable Rivalrous I want to give you an example to explain what those terms mean. So let's take the ocean it's very difficult to exclude people from being able to use the …
We've been discussing how public goods can lead to a market failure because of the free-rider problem which basically says that why would people want to pay for a public good if they believe it's going to be provided anyways and there's…
A public good is any type of good that is both nonrivalrous and non-excludable . What nonrivalrous means is that the marginal cost of providing this good to one extra person would be zero. Let's take national defense as an example. Let'…
Previously we've been talking about how negative externalities can create a problem because we've got one person imposing costs on another person but not reimbursing him or her for the harm that's being done. In a pigouvian tax and cap…
The topic we're gonna discuss is the difference between a cap-and-trade policy and a carbon tax. Both of these policies are intended to address a negative externality which is a situation where the marginal private cost to the firm is lower tha…
Cap-and-trade is a system of marketable permits that are used to address negative externalities. So I want to give you a specific negative externality. Let's talk about pollution and in particular, we'll talk about sulfur dioxide emissions.…
To discuss the concept of a Pigouvian tax in economics you need to remember when you have a negative externality and how that can create a market failure, where you basically have a situation where one person is imposing costs on another person but…
A positive externality exists when you do something that provides a benefit to somebody else but that person doesn't do anything to reward you for what you've done. You don't get any reward, you don't get any payment or anything even…
