Assignment for Lecture 6

For pages 78-81 (to Policy) in your text, substitute the reading by Eban S Goodstein from his Economics of the Environment, pages 30-37

Discussion Question Chpt 5 – Lecture 6

 Discuss the effects of technological improvement in an industry that uses a com­mon-property resource. For example, consider a technological improvement in fishing equipment that cuts the costs of a fishing boat trip in half. Technological progress usually increases net social benefit. Does it do so in this case? How would government policies relating to this industry affect your answer?