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Illegal Landings: An Aggregate Catch Self-Reporting Mechanism

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  • Urs Steiner Brandt
  • Niels Vestergaard

Abstract

To solve the problem of illegal landings this article proposes a new tax mechanism based on the regulator's own aggregate catch estimates and ex ante self-reports of planned catch by fishermen. We show that the mechanism avoids illegal landings while ensuring (nearly) optimal exploitation and generating (nearly) correct entry and exit incentives. Finally we simulate the mechanism for the Danish cod fishery in Kattegat to obtain a rough indicator of the size of the tax. It turns out that the average tax payment as a percentage of profit is surprisingly low. Copyright 2006, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/j.1467-8276.2006.00910.x
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 88 (2006)
Issue (Month): 4 ()
Pages: 974-985

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Handle: RePEc:oup:ajagec:v:88:y:2006:i:4:p:974-985

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  1. Wilen, James E., 2000. "Renewable Resource Economists and Policy: What Differences Have We Made?," Journal of Environmental Economics and Management, Elsevier, vol. 39(3), pages 306-327, May.
  2. Horan, Richard D. & Shortle, James S. & Abler, David G., 1998. "Ambient Taxes When Polluters Have Multiple Choices," Journal of Environmental Economics and Management, Elsevier, vol. 36(2), pages 186-199, September.
  3. Squires Dale & Alauddin Mohammad & Kirkley James, 1994. "Individual Transferable Quota Markets and Investment Decisions in the Fixed Gear Sablefish Industry," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 185-204, September.
  4. Jon G. Sutinen & Peder Andersen, 1985. "The Economics of Fisheries Law Enforcement," Land Economics, University of Wisconsin Press, vol. 64(4), pages 387-397.
  5. Parzival Copes, 1986. "A Critical Review of the Individual Quota as a Device in Fisheries Management," Land Economics, University of Wisconsin Press, vol. 62(3), pages 278-291.
  6. Segerson, Kathleen, 1988. "Uncertainty and incentives for nonpoint pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 15(1), pages 87-98, March.
  7. Jensen, Frank & Vestergaard, Niels, 2002. "Moral hazard problems in fisheries regulation: the case of illegal landings and discard," Resource and Energy Economics, Elsevier, vol. 24(4), pages 281-299, November.
  8. Ragnar Arnason, 1990. "Minimum Information Management in Fisheries," Canadian Journal of Economics, Canadian Economics Association, vol. 23(3), pages 630-53, August.
  9. Hansen, Lars Garn & Romstad, Eirik, 2007. "Non-point source regulation -- A self-reporting mechanism," Ecological Economics, Elsevier, vol. 62(3-4), pages 529-537, May.
  10. Smith, Vernon L, 1969. "On Models of Commercial Fishing," Journal of Political Economy, University of Chicago Press, vol. 77(2), pages 181-98, March/Apr.
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Cited by:
  1. Nøstbakken, Linda, 2008. "Fisheries law enforcement--A survey of the economic literature," Marine Policy, Elsevier, vol. 32(3), pages 293-300, May.
  2. Margrethe Aanesen & Claire Armstrong, 2013. "Stakeholder Influence and Optimal Regulations: A Common-Agency Analysis of Ecosystem-Based Fisheries Regulations," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 169(2), pages 320-338, June.
  3. Jens Abildtrup & Frank Jensen, 2012. "The Regulation of Hunting: A Population Tax," IFRO Working Paper 2012/2, University of Copenhagen, Department of Food and Resource Economics.
  4. Frank Jensen & Niels Vestergaard, 2004. "Fisheries Management with Multiple Market Failures," Working Papers 54/04, University of Southern Denmark, Department of Environmental and Business Economics.
  5. Flaaten, Ola & Schulz, Carl Erik, 2010. "Triple win for trade in renewable resource goods by use of export taxes," Ecological Economics, Elsevier, vol. 69(5), pages 1076-1082, March.
  6. Jensen, Frank, 2008. "Uncertainty and asymmetric information: An overview," Marine Policy, Elsevier, vol. 32(1), pages 89-103, January.

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