Chapter 11 B

Question 0

What is important when making a policy about renewable resources?

Answer 0

there are uncertainties so it’s important to include a margin of error on harvest rates.

Question 1

Explain what steady state is in terms of renewable resource management.

Answer 1

when the harvest rate and growth rate are equal on a resource. this means steady state

Question 2

What is tragedy of the commons?

Answer 2

it’s the problem that there is a lack of ownership on areas like the sea. can’t control what enters or exits our areas so can’t protect it.

Question 3

What are the five roles of government in natural resource policy?

Answer 3

1. ownership issues
access issues.
2. Market failures
(externalities) pollution. remediation. effects on other resources (direct and indirect)
3. depletion rates
who sets the harvest rates?
4. optics (marketing/trade)
5. economic driver
45% of our GDP is exports

Question 4

issues to consider with natural resources? (6)

Answer 4

1. renewable vs non renewable.
who sets the harvest rates?
how do we measure stock accuracy on non renewable? 
2. quantifying the resource
-some are easier to understand (timber) an some are harder cause they move around (cod)
make sure we include margin of error.
3. jurisdiction
some jurisdictions have access. some of te resources leave out jurisdiction (cod)
4. level of substitutes
necessity?
do we make policies that promote
development of substitutes?
5. extraction costs
externalities of pollution. who pays? do we internalize it?
6. harvest rates
who sets it? the market? the government?