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A Welfare Gain from Switching to Taxes? The Danish Cod Fishery in the Kattegat

Author

Listed:
  • Frank Jensen
  • Lars Gårn Hansen
  • Rasmus Nielsen

Abstract

Theoretical papers show that there could be a welfare gain from switching to tax regulation if managers are more uncertain about key parameters of a fishery than fishers. We estimate the size of the welfare gain that would result if a manager of the Danish cod fishery in the Kattegat switched from the current individual transferable quota system to tax regulation. We find that this would generate a small welfare gain of 0.023% of the industry profit and variations in parameter values (± 20%) at most result in a gain of 0.039%.

Suggested Citation

  • Frank Jensen & Lars Gårn Hansen & Rasmus Nielsen, 2024. "A Welfare Gain from Switching to Taxes? The Danish Cod Fishery in the Kattegat," Land Economics, University of Wisconsin Press, vol. 100(2), pages 353-369.
  • Handle: RePEc:uwp:landec:v:100:y:2024:i:2:p:353-369
    Note: DOI: https://doi.org/10.3368/le.100.2.052521-0054R2
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    More about this item

    JEL classification:

    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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