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Incentives to Conserve Marine Biodiversity
Marine biodiversity is the variety in life in seas and oceans. Over the years, marine life has encountered several challenges because much attention has never been paid to conserve it. However, incentives have been made to conserve marine biodiversity. These incentives have done its efforts to improve the marine life in different ways and have helped with conservation of marine biodiversity. Current paper discusses incentives to conserve marine biodiversity within the framework of impure public goods. It also discusses what an impure public good is, types of externalities associated with the impure public goods, technology, public goods supply and the types of economic incentives that are created for impure public goods with different technologies of public goods supply (Arriagada and Perrings).
Appropriate incentives to conserve marine biodiversity have been developed to reduce marine over-exploitation and habitat conversion. While pollution and environmental damage have been the major problem encountered by the marine biodiversity, environmental economics have developed ideas that are important in management of marine biodiversity. This includes the maximization of well-being of residents within a society. To make best use of the public overall well being when manufacturing a good, an extra good should be provided, as long as the benefit from it exceeds the cost of the added good. People residing near the place need to get a high quantity at low prices to ensure their well being. However, environmental problems arise due to institutional, market and policy failure (Bulte 2-4).
Institutional failure in marine biodiversity arises due to insecure property rights. This is because of open access to resources, like the species in the marine biodiversity and their habitat. However, there are different types of properties and how they are handled. These include private, state, common property and the no property rights. Private property involves private ownership of the species available in the marine biodiversity and the right to use and benefit from exploitation, conservation and sale of species, provided there is no effect on others that are not included in the habitat owned (Lind et al. 462-462). Private ownership is as well under state regulations that protect it. State property is where the state owns the species in the marine biodiversity, but people may be permitted to harvest them as per the rules accorded.
Common property is the property owned by groups where only members of the group are allowed to exploit the resources. No property right is where the property right is not assigned and there are no restrictions on ownership. This allows open access to the species available in the marine biodiversity and this would lead to failure because the property is going to be misused as there are no regulations that guide its exploitation (Bulte 5-6).
Market failure occurs because the amount of public good is under-provided. This causes the marginal social benefits to exceed marginal social costs and can be addressed through implementation of a tax or user charge. Marine biodiversity may be degraded due to policy failure. This is caused by subsidization of harvesting of species, available in the marine life or habitat conversion. This is where the harvesting of the resources is not restricted, and its exploitation by people would lead to overharvest. This can be overcome through allocation of property rights to the people accessing the marine that regulates the harvesting of the species available in the marine habitat. Also ensuring that the low cost of harvesting the species available in the marine is one way of preventing market failure. Implementing economic instruments helps in conserving the marine biodiversity.
Impure public goods are goods that are rivalrous and excludable. These may include goods that are provided by the public sector but are not public goods and can be termed as publicly provided private goods. These goods involve externalities which can be positive or negative. Positive externalities are those where the others face the effects without the active party, receiving compensation while negative externalities are those where the effects are faced by others and the active party does not pay the compensation.
Under-supply of international public goods depends on additive supply technology and the weakest link supply. It has been perceived that there has been market under-supply of public goods. The rationale behind this is that there is no compensation to local producers in the marine biodiversity habitats. This is because the market demands do not meet the costs incurred by local providers. It is therefore clear that the under-supply of public goods is caused by the payments made to local providers. International environmental public goods are global and include conservation of the genetic diversity, prevention of infectious diseases, alleviation of climate change and the management of the marine life. Once these goods are provided, no one can be exempted from getting involved in benefits from the goods (Arriagada and Perrings 798).
Public goods have benefits for most people globally. The benefits that are acquired by the people in the marine biodiversity include provision of products like food, genetic resources and fresh water, cultural, regulating and supporting services. Cultural services can include recreations, while regulation services include flood control and human disease regulation. These services affect human well being in different ways (Arriagada and Perrings 799-780).
Appropriate incentives are developed through understanding the technology of the supply of public goods. These include additive, best and weakest link technologies. The additive technology involves sum of separate amounts. Weighted sum of public goods includes summing up the contribution of every habitat. The best shot refers to the effectiveness of the provider in giving its services, while weakest link refers to limited benefits to countries due to the least effective provider. To achieve incentive to produce the public goods, the marginal local benefits of local benefits of public good provision should exceed the marginal local costs of provisions. A country must, however, be a best shot provider in order to satisfy the international demand. Consumers who consume public goods are willing to pay a different amount on a good, depending on the quantity they demand (Arriagada and Perrings 801).
Marine biodiversity conservation is an impure global public good, as it has many providers, of which each creates local gains from its maintenance attempts, but also depends on the conservation of the others. It has been explained that public goods have been under-supplied in the markets. However, for adequate provision to be achieved, technical considerations have to be made, excluding references to charges, profits or obtainable preferences and readiness to pay. An analysis of the communal goods collapse, linked with specific ecosystem that is essential in developing international reaction. Where the local gains causing to a stage of local supply that leave worldwide demand displeased, then the international coordination will be required. It is, therefore, crucial to establish the extend to which the collective reaction should be aimed. For public goods that have been supplied to markets to curb the global issue of undersupply, support can take the structure of direct savings in the supply or of payments for the benefits of supply (Arriagada and Perrings 804-805).
In conclusion, it is evident that incentives have been developed to conserve the marine biodiversity. It is also clear that public goods are goods that are provided to the people, whether globally or locally, these goods have benefits to humans. However, it has been noticed for a long time that there have been under-supply of these goods in the markets.