Question

You are in charge of preserving forests in the United States. Come up with three strategies to help preserve this common resource. Recall that you learned about three possible strategies: you can tax the users of the resource, or make the common resource excludable by assigning property rights to it, or make the rights to use the resource tradable. You may use any of these options or a combination thereof. Explain what strategy (ies) you selected and why you think that is the best option to preserve the forests.

Answer 1

ANSWER

I would suggest the tradable permits for the use of forest resources. We can decide the number of forest resources to be used (woodcutting, grazing, etc). After which we can allow the users with given permission to use the forest.

(1) Permits should be on the past experience of the users.

(2) Permits should only allow the sustainable use of the forest.

(3) permits can be traded among the users so that less efficient users can earn by selling permits.

(4) Permits lead to equity as there is a limit to every user.

(5) It can prevent illegal harvesting in comparison to the command and control methods.

Please thumbs up! Thanks.