Special Topic 12. Difficult Environmental Cases and the Role of Government.
ITQ is individual transferable quota. It allows each fisherman to catch a portion of the total allowable catch. This gives the fisherman a kind of property right over the amount of fish allotted to him. He can catch this amount at his convenient time and nobody reduces the amount of catch he is permitted and thus, decreasing his benefit out of fish. So, he does not need to take the risk of catching the fish in bad weather.
For the goods that are traded in market but do not have private ownership, the price of the good sends incomplete signals to the producers and managers. This affects the incentive of the managers to maintain the property. As everybody must pay for the resources they use, the reduction of fees to zero would put a halt on the revenue needed to keep the resources flowing. The maintainers would not be able to maintain the park anymore and the parks would haveto close its door to the visitors.
According to scientists worldwide, the global temperature has changed significantly in the past twice: in the Medieval Optimum and in the Little Ice age. Therefore, the current warming may not be the direct cause of carbon-di-oxide emissions. The prediction of the global warming is based on the computer models that miss out on some of the vital information. The global warming could prove beneficial for some parties and slowing down the process would put a huge cost to the society.