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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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  • Scott C. Matulich
  • Murat Sever
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    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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    Bibliographic 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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    Web page: http://le.uwpress.org/

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    Cited by:
    1. Matthew N. Reimer & Joshua K. Abbott & James E. Wilen, 2013. "Unraveling the Multiple Margins of Rent Generation from Individual Transferable Quotas," Working Papers 2013-03, University of Alaska Anchorage, Department of Economics.
    2. Heaps, Terry, 2003. "The effects on welfare of the imposition of individual transferable quotas on a heterogeneous fishing fleet," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 557-576, November.
    3. White, Lawrence J., 2006. "The Fishery as a Watery Commons: Lessons from the Experiences of Other Public Policy Areas for U.S. Fisheries Policy," Working paper 439, Regulation2point0.
    4. Fell, Harrison, 2008. "Ex-vessel Pricing and IFQs: A Strategic Approach," Discussion Papers dp-08-01, Resources For the Future.
    5. Eggert, Håkan & Tveterås, Ragnar, 2004. "Potential Rent and Overcapacity in the Swedish Baltic Sea Trawl Fishery," Working Papers in Economics 152, University of Gothenburg, Department of Economics.
    6. 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).
    7. Trond Bjørndal & Daniel Gordon & Mintewab Bezabih, 2012. "Measuring potential profits in a bioeconomic model of the mixed demersal fishery in the North Sea," Journal of Bioeconomics, Springer, vol. 14(2), pages 147-166, July.

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