Common-Pool Resources and Forestry – Economics Assignment Help

Assignment Task


Problem 1: Common-Pool Resources.

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In this problem we use the economic model of fisheries to analyse an increase in the price of fish and an improvement in the technology to catch fish. This short clip discusses price increases and the pressures on the Bluefin Tuna population


Using Figure 10.2 answer the following questions:

a. How does an increase in the price of Bluefin Tuna effect the efficient sustainable yield? Why? (4 points)

b. How does an increase in the price of Bluefin Tuna effect the harvest assuming it is an open access fishery? Why? (4 points)

c. Over time technological change has reduced the cost of fishing. How would this effect the efficient sustainable yield? Why? How would this effect effort in an open access fishery? Why?

A complication of Bluefin Tuna is that it migrates over long distances. For example, Southern Bluefin Tuna spawn in water off Java, Indonesia. The larvae and juvenile fish are then swept south along the Western Australian coastline and into the Great Australian Bight. The adult fish then migrate west into the Indian ocean. This means that the fish travel outside individual countries economic exclusion zones (EEZ) thus requiring international treaties and quotas which must be negotiated.

d. What are some of the problems you can foresee with these international agreements? What are some solutions? 

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