How can individual transferable quotas help address the tragedy of the commons in global fisheries?

Question

Ezekiel Allen · Accepted Answer

Individual transferable quotas or ITQs give each individual a reason to invest in the overall health of the population.

Individual transferable quotas (ITQs) are also known as catch shares. They assign an exclusive but transferrable right to a set portion of the total allowable catch (TAC) of fish. ITQs give each individual a right and a stake in the "commons" or the fishery. (Review what tragedy of the commons is here). They are a form of property rights that grant access rights and privileges.

ITQs work when they are assigned to those actually doing the fishing and must be accompanied with monitoring and enforcement. The aquatic ecosystem must also be monitored regularly so that suitable ITQs can be assigned and the overall health of the ecosystem maintained.

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Josephine Allen · Answer

undefined Individual transferable quotas (ITQs) can help address the tragedy of the commons in global fisheries by assigning property rights to individual fishermen or fishing companies for a specific portion of the total allowable catch. This creates a sense of ownership and responsibility, incentivizing fishermen to manage their allocated quota sustainably to maximize long-term profits. By setting a limit on the total catch and allowing individuals to trade their quotas, ITQs encourage efficiency and discourage overfishing. Additionally, ITQs promote stewardship of marine resources by empowering fishermen to take collective action to prevent the depletion of fish stocks. Overall, ITQs provide a market-based solution to the tragedy of the commons by aligning individual incentives with the collective goal of sustainable fisheries management.