The bluefin tuna is highly valued among sushi chefs and consumers. This tuna is unusual in that it is warm-blooded. The bluefin communities are off the east coast of the U.S. and the west coast of the U.K., France and Spain. Bluefin regularly commute across the Atlantic, roaming outside the 100-mile coastal zone controlled by the U.S. The bluefin population has been under tremendous pressure with a 60% decrease occurring between 2000 and 2009. The International Commission for the Conservation of the Atlantic Tuna (ICCAT) is responsible for conserving the bluefin. However, that group has never had any enforcement power, acting in mainly an advisory capacity. In 2009 ICCAT scientists recommended a catch quantity of zero. The Commission set a quota of 13,500 tons. The incentives to catch bluefin are very large. In January 2011 a 754-pound bluefin sold for almost $400,000. ($530 per pound). According to standard environmental economics, rational fishers will only continue to fish marginal revenue exceeds marginal fishing effort. Technological improvements such as Garmin's Fish-Finder and other sonar devices have reduced the cost per unit of fishing effort, increasing the profit-maximizing catch size. Question: How should the problem of over-fishing the bluefin be handled? To answer this question please review this video: https://www.youtube.com/watch?v=bs2P0wRod8U&t=5s The Tragedy of the Commons Your answer should demonstrate an understanding of rival vs non-rival goods and excludable vs non-excludable goods. You should also discuss the 3 approaches to addressing the issue presented in the video and do enough research to discover how any of these might have been implemented and how effective they have been.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The bluefin tuna is highly valued among sushi chefs and consumers. This tuna is unusual in that it is warm-blooded. The bluefin communities are off the east coast of the U.S. and the west coast of the U.K., France and Spain. Bluefin regularly commute across the Atlantic, roaming outside the 100-mile coastal zone controlled by the U.S. The bluefin population has been under tremendous pressure with a 60% decrease occurring between 2000 and 2009. The International Commission for the Conservation of the Atlantic Tuna (ICCAT) is responsible for conserving the bluefin. However, that group has never had any enforcement power, acting in mainly an advisory capacity. In 2009 ICCAT scientists recommended a catch quantity of zero. The Commission set a quota of 13,500 tons. The incentives to catch bluefin are very large. In January 2011 a 754-pound bluefin sold for almost $400,000. ($530 per pound). According to standard environmental economics, rational fishers will only continue to fish marginal revenue exceeds marginal fishing effort. Technological improvements such as Garmin's Fish-Finder and other sonar devices have reduced the cost per unit of fishing effort, increasing the profit-maximizing catch size. Question: How should the problem of over-fishing the bluefin be handled? To answer this question please review this video: https://www.youtube.com/watch?v=bs2P0wRod8U&t=5s The Tragedy of the Commons Your answer should demonstrate an understanding of rival vs non-rival goods and excludable vs non-excludable goods. You should also discuss the 3 approaches to addressing the issue presented in the video and do enough research to discover how any of these might have been implemented and how effective they have been.

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