Question

3. Discuss the mechanism and conditions under which it would be likely that a fish species be hunted to extinction in an open harvest fishery. Detail at least one policy that could be enacted by government to prevent this from occurring.

Answer 1

3.

When open harvest fishery, becomes a common resource good, then it will make fishes to reach the level of extinction. It will happen, because open harvest fishery will become a good that is rivalrous and non-excludable in nature. It will make people to compete against each other and excessive harvesting of fishes takes place as people do not need to pay for it. It will also attract free rider issues, that is also shown in the case of public good. Over a period of time, fish harvesting will be excessively more than, efforts made to increase the fish level in the fishery as nobody is held responsible for it. It will make fishes to reach to the level of extinction.

One policy that can prevent it, is to give the ownership of open harvest fishery to the private hands and put some price on it. When the ownership becomes private, people as owner start caring the resources available to them and they make a proper plan regarding the use of it, its valuation and charging prices for the use of it. It will work to the conservation of the resource, when private parties hold the ownership.