though
governing authorities may have to iteratively adjust the tax
A policy alternative for lagoon management 29
rate from year to year to approach this theoretical ideal. In a
tradable permit system, the governing authority fixes the
aggregate fishery harvest (presumably at the sustainable
level), and then allocates rights to the aggregate harvest by
issuing permits among fishers. Fishers can reallocate rights
to portions of the harvest by buying and selling permits
among themselves. Fishers who buy permits take on a cost
associated with harvesting above the level represented by
their initial permit allocation. The information needed to
establish Total Allowable Catch (TAC) is quite costly, as
is the monitoring and enforcement of the permit system.