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A Tale Of Two Clams: Policy Anticipation And Industry Productivity

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  • Brandt, Sylvia J.

Abstract

Sound environmental regulation must achieve environmental objectives while maximizing economic efficiency. This paper evaluates the impact of regulation on efficiency by measuring annual productivity across regulatory regimes in two similar fisheries with differing policy expectations. Anticipation of regulatory change produced strategic behavior in one fishery, leading to depressed productivity; in the other, regulatory change was not expected, and productivity did not suffer. These results imply that fisheries regulation should take into account both firms' policy expectations and the potentially perverse incentives that may be created by policy change.

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File URL: http://purl.umn.edu/22056
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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2003 Annual meeting, July 27-30, Montreal, Canada with number 22056.

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Date of creation: 2003
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Handle: RePEc:ags:aaea03:22056

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Keywords: Agricultural and Food Policy; Productivity Analysis;

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  1. Weninger, Quinn & Just, Richard E., 2002. "Firm Dynamics with Tradable Output Permits," Staff General Research Papers 10831, Iowa State University, Department of Economics.
  2. Adam Jaffe & Richard Newell & Robert Stavins, 2002. "Environmental Policy and Technological Change," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(1), pages 41-70, June.
  3. Christopher R. Knittel, 2002. "Alternative Regulatory Methods And Firm Efficiency: Stochastic Frontier Evidence From The U.S. Electricity Industry," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 530-540, August.
  4. Jin, Di & Thunberg, Eric & Kite-Powell, Hauke & Blake, Kevin, 2002. "Total Factor Productivity Change in the New England Groundfish Fishery: 1964-1993," Journal of Environmental Economics and Management, Elsevier, vol. 44(3), pages 540-556, November.
  5. Gray, Wayne B, 1987. "The Cost of Regulation: OSHA, EPA and the Productivity Slowdown," American Economic Review, American Economic Association, vol. 77(5), pages 998-1006, December.
  6. Grafton, R.Q. & Squires, D. & Fox, K.J., 1998. "Private Property and Economic Efficiency: A Study of a Common-Pool Resource," Working Papers 9804e, University of Ottawa, Department of Economics.
  7. Homans, Frances R. & Wilen, James E., 1997. "A Model of Regulated Open Access Resource Use," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 1-21, January.
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