Economics and policies in fisheries

Abstract

Establishing property rights on resources is crucial for their rational and efficient utilization. A resource which is owned by nobody is open to misuse. If no one owns trees, then no one will have wealth incentive to preserve them until they are mature and ready for felling. In a situation like this a ‘first come first served’ principle will prevail and the trees will be cut down prematurely. Whoever does it first will take the wood. Likewise, as long as no-one owns lakes and rivers then nobody will be motivated to use them in their most valuable ways. Some may dump rubbish in an unowned lake since the lost value of polluted water is not thrust upon them with sufficient rights or self-serving incentive to control pollution.