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Triple Win for Trade in Renewable Resource Goods by Use of Export Taxes

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  • The majority of monitored fish stocks globally is fully or over exploited, that is, at or below their maximum sustainable yield stock levels. Despite this resource situation international trade in fish products have been increasing for a long time. An export tax on fish and fish products, as an alternative to Pigouvian harvest or effort taxes, is introduced in a resource-trade model for a small open economy. It is analysed to what extent such a tax could mitigate biological and economic overuse of fish stocks and increase national welfare, which is affected both through the general government budget and through effects on consumer surpluses. We also discuss briefly implications for aquaculture environment, production and trade. It is demonstrated that a resource export tax may be beneficial for total national welfare compared to a laissez-faire policy. The theoretical analysis is illustrated by a stylized case study for a small open economy.
  • KEYWORDS: Fish stocks, Resource-trade model, Fisheries economics, Export taxes, National welfare, Renewable resource goods, Small open economy
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  • Flaaten, Ola and Carl Erik Schulz. 2008. Triple Win for Trade in Renewable Resource Goods by Use of Export Taxes. 11 pages. In: Proceedings of the Fourteenth Biennial Conference of the International Institute of Fisheries Economics & Trade, July 22-25, 2008, Nha Trang, Vietnam: Achieving a Sustainable Future: Managing Aquaculture, Fishing, Trade and Development. Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2008.
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  • US National Oceanic and Atmospheric Administration (NOAA) Fisheries Division, The Department of Fisheries and Oceans, Canada; Aquaculture CRSP and AquaFish CRSP; Minh Phu Seafood Corporation; Vietnam Datacommunication Company (VDC); Camau Frozen Seafood Processing Import Export Corporation (Camimex); Long Sinh Limited Company; Mai Linh Group and Nam Viet Corporation.



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