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Value-based ITQ's


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  • Matthew A. Turner


There is empirical and theoretical evidence indicating that quota-induced highgrading is aproblem in weight-based ITQ programs. This paper examines value-based ITQ programs as apossible solution to this problem. It is shown that value-based ITQ programs do not provide anincentive to highgrade, and may achieve a target harvest with greater accuracy than weight-basedITQ programs. Two ways of administering value-based ITQ programs are suggested. Though both are arguably more difficult to administer than a weight-based ITQ program, a value-based ITQ program may be less complicated than a weight-based ITQ program coupled with the sorts of taxes, landings restrictions, or multiple quotas, that have been proposed as remedies for quota-induced highgrading.

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Bibliographic Info

Paper provided by University of Toronto, Department of Economics in its series Working Papers with number mturner-95-03.

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Length: 12 pages
Date of creation: 12 Dec 1995
Date of revision:
Handle: RePEc:tor:tecipa:mturner-95-03

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Related research

Keywords: Fisheries regulation; tradable quota; value based quota;

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  1. Matthew A. Turner, 1995. "Economics without Free-disposal: Quota-induced Discarding in Heterogenous Fisheries," Working Papers mturner-95-02, University of Toronto, Department of Economics.
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Cited by:
  1. Matthew A. Turner, 1998. "Optimal quota programs," Working Papers mturner-98-01, University of Toronto, Department of Economics.
  2. Matthew A. Turner, 1995. "Economics without Free-disposal: Quota-induced Discarding in Heterogenous Fisheries," Working Papers mturner-95-02, University of Toronto, Department of Economics.
  3. Matthew A. Turner, 1999. "Uncertainty and the choice of quota program in a multi-product fishery," Working Papers mturner-01-01, University of Toronto, Department of Economics.


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