Individual transfer quota (ITQ),
Definition of Individual transfer quota (ITQ):
ITQ's are used to limit the output of a given good or service. For example, due to an import agreement with another country, a government may want to impose an ITQ on domestic farmers of wheat. By imposing an ITQ on each farmer, the government can impose a limit on the total production of wheat.
A system used by government entities to manage production of certain goods or services for economic or environmental purposes. The government assigns each party involved in production of the goods or services a quota. If one party does not fulfill the quota, it may sell (transfer) the unused portion to another party. This type of program is often used in fisheries to prevent excessive depletion of resources.
Individual Transfer Quota - ITQ is a quota, imposed on individuals or firms by a governing body, that limits the production of a good or service. If the entity does not produce the maximum amount as set out by the quota, they may transfer the remaining portion of the quota to another party.
Meaning of Individual transfer quota (ITQ) & Individual transfer quota (ITQ) Definition