Overhunting can endanger a species pollution.
Evaulate the likely impact and effectiveness of the following policies.
1. shorten seasons and allowable hunting hours per day
2. double commercial license fees
3. impose a tax on all kills
4. set and enforce maximum kills
This is for my microeconomics class, I pretty much had some idea for each one, but i'd like to hear some other inputs. This is more for microeconomic analysis, not a 'real life' opinion. Thanks
The more I think about your question, the deeper into the quagmire I sink into.
For a simple answer, start with a simple demand curve for hunting. Put All Hunting costs on the y-axis. The proper metric for the x-axis is harder to determine. Start with Hunting Hours on the x-axis, with an assumption that there is a postitive and known relationship with hours of hunting and number of kills. (The relationship may or may not be linear). The shape of the demand curve I leave up to you. Is hunting activity elastic or inelastic? Now draw a hunting cost curve. Again, the shape of the cost curve is hard to determine. Is it flat, where only the only costs are essentially fixed costs? Or do costs rise with each additonal hour hunted?
Equilibrium occurs where the cost curve equals the demand.
Now impose your policies, deciding which curve shifts, and by how much.
Lotsa luck.
Analyzing the impact and effectiveness of the policies you mentioned:
1. Shortening seasons and allowable hunting hours per day:
By shortening seasons and limiting the hunting hours per day, the policy aims to reduce the amount of time available for hunting, thereby decreasing the number of kills. In terms of microeconomic analysis, this policy would likely shift the supply curve leftward, as it reduces the quantity supplied at a given price. The effectiveness of this policy depends on the elasticity of demand for hunting. If demand is inelastic (insensitive to price changes) and hunters are willing to pay higher prices to continue hunting, the impact may not be significant in curbing overhunting. However, if demand is relatively elastic, meaning hunters are price-sensitive and less willing to pay higher prices, the policy could have a more substantial impact.
2. Doubling commercial license fees:
Doubling commercial license fees increases the cost of hunting for commercial hunters, which can reduce the incentive for overhunting. This policy aims to decrease the quantity supplied by commercial hunters and shift the supply curve leftward. The effectiveness of this policy also depends on demand elasticity. If commercial hunters can pass on the increased costs to consumers without a significant decline in quantity demanded, the impact might be limited. However, if demand is relatively elastic, doubling the license fees could lead to a noticeable decrease in the quantity of hunting provided by commercial hunters.
3. Imposing a tax on all kills:
By imposing a tax on each kill, the policy increases the cost of hunting for all hunters, including both commercial and recreational. This policy seeks to decrease the quantity supplied by shifting the supply curve leftward. The impact and effectiveness depend on the tax amount and the elasticity of demand. If the tax is relatively small and demand is inelastic, there might be limited impact on reducing overhunting. However, if the tax is substantial and demand is elastic, the policy could significantly discourage hunting and help protect the species.
4. Setting and enforcing maximum kills:
Setting and enforcing a maximum limit on the number of kills per hunter aims to prevent overhunting directly. This policy is likely to shift the supply curve leftward by imposing a quantity constraint. The impact depends on the level of the maximum kills set and the response of hunters to the restriction. If the maximum limit is set too high or if enforcement is lax, the policy may not effectively reduce overhunting. Conversely, if the limit is set low and enforcement is strong, the policy could have a significant impact in curbing overhunting.
In terms of microeconomic analysis, understanding the elasticity of demand and supply for hunting, along with considering the specific details and characteristics of each policy, can provide a more comprehensive evaluation of their potential impact and effectiveness.