What policy option would be appropriate for a non-excludable and rival good like fisheries in international waters?

• A. Quotas or tradable fishing rights (property rights) or regulation to prevent overfishing.
• B. Open-access fishing with no rights.
• C. Subsidizing fishing to increase supply.
• D. Total ban on fishing.

Answer: (A)

Non-excludable and rival resources like fisheries in international waters suffer from overuse unless there are rules to limit access and harvest. When anyone can fish and each additional fish lowers everyone else’s catch, the stock tends toward depletion—the tragedy of the commons. The appropriate policy is to impose limits on total harvest or to assign property-like rights to catch shares, alongside effective regulation. Quotas cap the overall catch at sustainable levels, preventing overfishing, while tradable fishing rights provide flexibility and give fishers incentives to conserve the stock, since their rights have value. Regulation can also include licenses, seasonal closures, and gear restrictions to enforce those limits. Open-access fishing with no rights would fail because it doesn’t deter overfishing. Subsidies would boost effort and worsen the problem, and a total ban is overly restrictive and costly. In international waters, such approaches require coordinated agreements and enforcement to work.