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Instrument choice when regulators are concerned about resource extinction

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  • Hansen, Lars Gårn
  • Jensen, Frank
  • Russell, Clifford

Abstract

In this paper we undertake a systematic investigation of instrument choice when preventing a population collapse rather than maximizing industry profit is the overriding concern. Contrary to what seems to be the general consensus we find that landing fees do provide more effective insurance against extinction than quotas under more or less the same conditions as those implying that landing fees are better at maximizing industry profit. Thus, the efficiency of the regulatory instrument mainly depends on the basic information asymmetries characterizing the fishery, and is not sensitive to whether the regulators total catch goals are set according to economic or precautionary principles.

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  • Hansen, Lars Gårn & Jensen, Frank & Russell, Clifford, 2013. "Instrument choice when regulators are concerned about resource extinction," Resource and Energy Economics, Elsevier, vol. 35(2), pages 135-147.
    • Handle: RePEc:eee:resene:v:35:y:2013:i:2:p:135-147
    DOI: 10.1016/j.reseneeco.2012.12.001
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    More about this item

    Keywords

    Prices versus quantities; Resource extinction;

    JEL classification:

    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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