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1. One of the strongest objections to market based fishery management is the possibility of consolidation. Describe this phenomenon and explain why it may occur under an individual tradable quota (ITQ) system. To what degree has consolidation occurred in New Zealand fisheries managed by ITQs? Is it a concern for efficiency, distributional equity, or both? The government of New Zealand has taken some measures to reduce the impact of consolidation. Describe these measures, and discuss the equity/efficiency trade-off that they imply.
2. Is a "pay as you throw" policy for solid waste management a Pigouvian tax? Why or why not? Have these policies been successful?
3. The world's supply of oil is being depleted much faster than the rate of natural regeneration. From an economic perspective, can this be efficient? Can it be sustainable?
4. Economist Robert Solow describes green accounting as an "almost practical step toward sustainability." Why is it almost practical? How might green accounting promote sustainability from an economic perspective?
5. In 1976, the state of Alaska established the "Alaska Permanent Fund," which primarily uses the returns from investing the proceeds of the sale of oil to provide Alaska residents with dividends (averaging $1,240 in the past fifteen years).The Permanent University Fund in Texas (currently valued at $15 billion) uses proceeds from the sale of oil leases and royalties on state land to finance several state universities.Assess these policies from the perspective of economic sustainability.
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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