Harvest Efficiency and Discards under Harvest Uncertainty and Trading Frictions
AbstractWe study harvesting efficiency and the problem of discards resulting from unanticipated harvest in a fishery managed with quotas. Harvest uncertainty can be idiosyncratic as well as correlated across fishermen. With only idiosyncratic harvest uncertainty, we show that frictionless post harvest quota trade can eliminate at-sea discards completely. In the absence of such trade, we deduce an ad-valorem tax/subsidy that eliminates discards while delivering a desired harvest target. Alternatively, we identify a hybrid policy, i.e., a combined quota and landings fee, which can implement a managers target harvest level without discards. When harvest shocks, in addition, have a fishery-wide component, post-harvest quota trading per se cannot eliminate discards; policy intervention in the form of either landing taxes or a hybrid scheme is needed. Given the prevalence of restrictions on quota trade in quota-managed� fisheries worldwide, our paper offers important policy advice.
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Bibliographic InfoPaper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 35039.
Date of creation: 03 Apr 2012
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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
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Trading frictions; discards; Harvest randomness; catch-quota imbalance;
Find related papers by JEL classification:
- Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
- Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
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