공유수면의 사회적 비용발생에 대한 원인분석

Abstract

<ABSTRACT>

An Analysis on the Causes Generating the Social Cost in

Public Water Surface

Graduate School of International Trade

Korea Maritime University

Jung, Heon Chul

The public water surface is defined by the area which consists of the seashore and the sea which range from the boundary between the seashore and the sea to exclusive economic zone(EEZ). A variety of goods and services is being produced in this area.

However, A lot of social problems such as the privatization through reclamation of the public water surface, marine pollution, the destruction of ocean environment and the rapid reduction of fishes are taking place. Eventually such things lead to generating the social cost. Why do such

things happen? These phenomena have a lot to do with the

characteristics of public water surface as goods.

The public water surface as goods has a characteristics of common resources which is non-exclusive in that everyone has as access freely to it and contestable in that one's usage has a substantial effect on other person's usage. Then the private maximization of his own profit

cannot produce the maximization of social welfare, which is eventually generating the big social cost. What causes these things can be explained through the concepts of negative externality, the tragedy of common resources, prisoners' dilemma, the problem of collective action

and free rider's problem, based upon game theory.

To solve these problems in order to attain the social optimum, three approaches are suggested. One is through the central or local government's intervention. The common resources ends up to desperate destruction due to its non-excludability. It is claimed that the strong regulation of government can prevent it from being destroyed. But It is found that in many cases, the government's measures are adding another social costs by allowing a specific group to monopolize some areas or by mis-allocating the spaces due to lack of information

including regional culture and specificity. To get over the problem of government's intervention, it is claimed the establishment of private property should be achieved. By transforming the non-exclusive goods into the exclusive one through the private property, the market system can be applied to allocate these common resources efficiently. But there are quite a few things in the public water surface which is impossible to specify the private property such as fishes under the sea. Mis-specification of the private property rather provokes the social costs. Another approach, self-governing approach, was suggested by

Ostrom. The group of people who understand the common resources well can contribute to overcoming the problem of common resources through cooperation with the members of group.

The public water surface covers very wide area and produces a variety of goods and services and also generates the problem of common resources related with social cost. One approach is impossible to solve the problems caused in the public water surface. The proper approach should be applied to attain the social optimum, considering the specificity of a certain area of public area.