Lesson 7

Interactive Resource

A resource where the stock is jointly determined by biological considerations and actions taken by society.

Right of Capture

In fisheries, a fish is not owned until it is captured by a fisher. This results in an open-access scenario.

Open Access Resource

A resource that is rival and non-excludable.

Rival

one individual’s consumptions lowers the amount of the good available for others to consume.

Non excludable

an individual cannot be stopped from consuming a good even when they have not paid for it.

Exclusive Economic Zone

A zone that extends up to 200 nautical miles from a nation’s territorial sea baseline. The nation has the right to set the rules for exploring, exploiting, conserving natural resources (both living and non-living).

Total Allowable Catch

A set quantity of fish that can be legally extracted by fishers as a group from a fishery.

Tradable Permits

Also called “Cap-and-trade.” The government creates a limited amount of permits which give access to a portion of the Total Allowable Catch. Example: Individual Transferable Fishing Quotas" (or ITQs)

Non Attainment Area

Areas that do not meet the EPA’s standard of ambient pollution. No new sources of emissions are allowed in non-attainment areas. This is called a moratorium.

Netting

when a firm reduces emissions at one of its plants in order to be allowed to increase at another of its plants.

External Trading

when a firm purchases emission permits from another firm.

Banking

A firm may save permits in one year and use them in a later year.

Offsets

when a firm reduces emissions by X units in an attainment area in order to be allowed to emit in a non-attainment area. Where X > Y.