Landings Fees Versus Individual Transferable Quotas: A Disaggregated Analysis Public Deposited

http://ir.library.oregonstate.edu/concern/conference_proceedings_or_journals/5d86p151s

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  • Weitzman (2002) has shown that with a stochastic growth function and uncertainty in estimating stock size, landing fees will be superior to quotas as a means of controlling fish harvest. Hannesson and Kennedy (2003) expand the analysis by considering variable availability of fish, random fish prices, and non-constant returns to stock in the yield function and show that in some cases quotas will be superior to landings fees. This paper expands the analysis further by using an aggregate analysis where the entry and exit of firms and the necessity of covering fixed costs can be considered. As part of the analysis, the Weitzman conclusions require a TAC time path which uses a most rapid approach to the desired stock size. The paper further extends the Weitzman discussion by introducing a more politically realistic TAC setting program. The extended analysis shows that fees will now always be superior to TAC/ITQs.
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  • Anderson, Lee G., Rognvaldur Hannesson. 2004. Landings Fees Versus Individual Transferable Quotas: A Disaggregated Analysis. Peer Review: No. In: Proceedings of the Twelfth Biennial Conference of the International Institute of Fisheries Economics & Trade, July 20-30, 2004, Tokyo, Japan: What are Responsible Fisheries? Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2004. CD ROM. ISBN 0-9763432-0-7
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