Taxation is appealing from a theoretical perspective because with a properly designed tax, desired goals can be achieved through normal market forces rather than by some artificial method (such as restricting the number of commercial permits). Assume a fish population is currently at N_b and you want to maintain it at that level by harvesting g(N_b). How can a tax be determined for each fish caught to cause N_L, N_b, and N_p to coincide? (Consider Equation (13.8) and the condition required for N_b = N_p.)

Equation 13.8

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TP = g(N) [p-c(N)] (13.8)