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Reconsidering the Initial Allocation of ITQs: The Search for a Pareto-Safe Allocation between Fishing and Processing Sectors

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Author Info
Scott C. Matulich
Murat Sever
Abstract

Advancement of rights-based fishing is stymied by industry and congressional concern over distributional issues arising out of traditional ITQ design. This paper examines the existence and policy feasibility of two alternative initial allocations intended to leave the two principal industry participants, the fishers and processors, no worse off, while maximizing efficiency. Market structure is shown to be a critical consideration, not only to avoid unintended wealth redistribution, but also to achieve efficiency.

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Publisher Info
Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 75 (1999)
Issue (Month): 2 ()
Pages: 203-219
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Handle: RePEc:uwp:landec:v:75:y:1999:i:2:p:203-219

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Find related papers by JEL classification:
Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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  1. HIGASHIDA Keisaku & TAKARADA Yasuhiro, 2009. "Efficiency of Individual Transferable Quotas (ITQ) Systems and Input and Stock Controls," Discussion papers 09046, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
  2. Matulich, Scott C. & Sever, Murat & Inaba, Fred, 2001. "Fishery Cooperatives As An Alternative To Itqs: Implications Of The American Fisheries Act," Marine Resource Economics, Marine Resources Foundation, vol. 16(1). [Downloadable!]
  3. Eggert, Håkan & Tveterås, Ragnar, 2004. "Potential Rent and Overcapacity in the Swedish Baltic Sea Trawl Fishery," Working Papers in Economics 152, Göteborg University, Department of Economics. [Downloadable!]
  4. Cancino, Jose P. & Uchida, Hirotsugu & Wilen, James E., 2007. "TURFs and ITQs: Collective vs. Individual Decision Making," Marine Resource Economics, Marine Resources Foundation, vol. 22(4). [Downloadable!]
  5. Matulich, Scott C. & Clark, Michael L., 2003. "North Pacific Halibut And Sablefish Ifq Policy Design: Quantifying The Impacts On Processors," Marine Resource Economics, Marine Resources Foundation, vol. 18(2). [Downloadable!]
  6. Fell, Harrison, 2008. "Ex-vessel Pricing and IFQs: A Strategic Approach," Discussion Papers dp-08-01, Resources For the Future. [Downloadable!]
  7. Lawrence J. White, 2006. "The Fishery as a Watery Commons: Lessons from the Experiences of Other Public Policy Areas for US Fisheries Policy," Working Papers 06-18, New York University, Leonard N. Stern School of Business, Department of Economics. [Downloadable!]
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This page was last updated on 2009-12-19.

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