A discrete-time stochastic bioeconomic model is developed and used to analyse the North Sea herring fishery under alternative management regimes. The analysis focuses on how catches and harvesting policies change with the price of herring. Two production functions are used to explain the harvesting process. At small stock levels, the...
Early studies of economies of scale show that ownership limitations imposed large costs on salmon farming firms prior to the deregulation of the industry in 1991. Since then a number of mergers and acquisitions have taken place and the industry has become far more concentrated. Despite this, a number of...
In this paper, a dynamic model of fishermen’s compliance is developed and used to analyse
several issues. There are two parties involved in the fishery; the regulator and the fishermen.
Regulator takes on a long term view and sets quota at the beginning of every period in order
to maximise...
Excess and over capacity are key management issues in global fisheries. These issues have also received widespread attention in the literature. Previous work on firm-level investment behavior in fisheries, both theoretical and empirical, typically assumes risk neutral and profit maximizing agents. While this work has led to a much better...
Production quotas can restore efficiency in industries characterized by production externalities, such as resource industries and industries with environmental regulations. However, with imperfect quota enforcement, firms may have incentives to build up excess capacity relative to their quotas. Firms with excess capacity may, in turn, have stronger incentives to violate...
Many renewable resources, such as fish stocks, water or environmental
quality, are shared between different countries. The management of such
resources then relies on international agreements. We develop a model of a
shared renewable resource for which there is an international agreement
that determines each country's share of total extractions....
Two of the main problems in fisheries management are over-fishing and
over-capacity driven by the production externality inherent in common
property resource use. Quotas have been introduced to cap total catches,
and regulations such as input restrictions and limited entry have been used
to reduce the capacity problem. Economists generally...
When a new market is created for ITQs, fishermen may have little information about the value of the newly-created assets that they hold. As such, concerns have been raised regarding distributional concerns associated with the transition to market-based management of natural resources. Aside from the first-order concerns regarding the initial...
Quotas or permits are frequently used in the management of renewable resources and emissions. However, in many industries there is concern about the basic effectiveness of quotas due to noncompliance. We develop an enforcement model of a quota-regulated resource and focus on a situation with significant non-compliance and exogenous constraints...
Illegal extraction is a serious issue in many renewable resource industries, such as fisheries and forestry. This traditional approach is to model the resource firm as one cohesive unit or an individual. However, in many cases violations are not committed by an individual, but by agents acting on behalf of...