Instrument choice when regulators are concerned about resource extinction

Lars Gårn Hansen, Frank Jensen, Clifford Russell

    Abstract

    In this paper we undertake a systematic investigation of instrument choice when preventing a population collapse rather than maximizing industry profit is the overriding concern. Contrary to what seems to be the general consensus we find that landing fees do provide more effective insurance against extinction than quotas under more or less the same conditions as those implying that landing fees are better at maximising industry profit. Thus, the efficiency of the regulatory instrument mainly depends on the basic information asymmetries characterizing the fishery, and is not sensitive to whether the regulators total catch goals are set according to economic or precautionary principles.
    OriginalsprogEngelsk
    UdgiverInstitute of Food and Resource Economics, University of Copenhagen
    Antal sider27
    StatusUdgivet - 2011
    NavnFOI Working Paper
    Nummer2011/6

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