Conservation of Marine Biodiversity within the Framework...

Conservation of Marine Biodiversity within the Framework of Impure Public Goods Since the early days when Adam Smith coined the term â€Å"invisible hand of the market† in his magnum opus, The Wealth of Nations, it was typically believed among the general population that all goods can be distributed without any interference from the government. Contrary to the popular belief, however, this applies specifically to private goods, i.e. a type of good that is both rivalrous and excludable. It may seem that marine biodiversity is a type of public good, since they are in the vast ocean and everyone is entitled to their ownership. However, many marine biodiversity have tremendous economic values, and one person using it may constitute as another†¦show more content†¦Impure public goods also create asymmetric externality, which its â€Å"economic agents who generate this externality are distinct from those who experience them.† (Squires, Environmental Externalities and Market Failure, 26) In the case of marine biodiversity such as dolphins, one ca n see that it is affected by technological externalities because people do not buy dolphins, hence dolphins do not have a market price tag to them; however, they are extremely useful in catching tuna, therefore people use them to catch tuna, and in the process, dolphins can get caught in the net and drown. In this example, the external effect is not through market price, but through the number of dolphins caught in the net and drown. There are three types of technology of public good supplies: additive, best-shot and weakest-link. First, ‘additive’ public goods are the ones that â€Å"the socially available amount of a public good is nothing but the ‘simple sum’ of the separate amounts produced by each of the participating countries.† (Arriagada and Perrings, 799) In the case of ‘best-shot’ public goods, â€Å"the benefit to all countries is determined by the most effective provider.† (Arriagada and Perrings, 799) Last but not least, ‘weakest-link’ public goods are ones that that â€Å"benefits to all countries are limited to the benefits offered by the least effective provider.† (Arriagada and Perrings, 799) In the case of marine biodiversity