IDEAS home Printed from https://ideas.repec.org/a/kap/enreec/v31y2005i3p303-324.html
   My bibliography  Save this article

Individual Transferable Quota Markets under Illegal Fishing

Author

Listed:
  • Carlos Chavez
  • Hugo Salgado

Abstract

The use of individual transferable quotas in fisheries has been considered an opportunity to achieve a given total allowable catch with a maximum social benefit. One of the assumptions used in obtaining that result is that the system is in perfect compliance. The presence of violations and the need for enforcement of tradable property rights systems in fisheries has not received much attention in the literature. The incidents of non-compliance, however, may affect the performance of transferable property rights-based fisheries in unexplored ways. In this paper, we adapt previous literature on enforcing emissions trading programs to analyze a positive model of fisherman behavior that operates under a perfectly competitive individual transferable quota system, while recognizing the opportunities for violations of quota holdings, given incomplete enforcement. Considering a poorly enforced, individual transferable quota system we are able to obtain a number of implications for the current and future equilibrium of the quota market, the time paths of the fishery, and the proper design of a policy rule on total allowable catch (TAC). Copyright Springer 2005

Suggested Citation

  • Carlos Chavez & Hugo Salgado, 2005. "Individual Transferable Quota Markets under Illegal Fishing," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 31(3), pages 303-324, July.
    • Handle: RePEc:kap:enreec:v:31:y:2005:i:3:p:303-324
    DOI: 10.1007/s10640-005-1543-6
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10640-005-1543-6
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10640-005-1543-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stranlund, John K & Chavez, Carlos A, 2000. "Effective Enforcement of a Transferable Emissions Permit System with a Self-Reporting Requirement," Journal of Regulatory Economics, Springer, vol. 18(2), pages 113-131, September.
    2. Stranlund, John K. & Dhanda, Kanwalroop Kathy, 1999. "Endogenous Monitoring and Enforcement of a Transferable Emissions Permit System," Journal of Environmental Economics and Management, Elsevier, vol. 38(3), pages 267-282, November.
    3. Parzival Copes, 1986. "A Critical Review of the Individual Quota as a Device in Fisheries Management," Land Economics, University of Wisconsin Press, vol. 62(3), pages 278-291.
    4. Malik, Arun S., 1990. "Markets for pollution control when firms are noncompliant," Journal of Environmental Economics and Management, Elsevier, vol. 18(2), pages 97-106, March.
    5. Keeler, Andrew G., 1991. "Noncompliant firms in transferable discharge permit markets: Some extensions," Journal of Environmental Economics and Management, Elsevier, vol. 21(2), pages 180-189, September.
    6. Milliman, Scott R., 1986. "Optimal fishery management in the presence of illegal activity," Journal of Environmental Economics and Management, Elsevier, vol. 13(4), pages 363-381, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. José-María Da-Rocha & Jaume Sempere, 2017. "ITQs, Firm Dynamics and Wealth Distribution: Does Full Tradability Increase Inequality?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(2), pages 249-273, October.
    2. Aaron Hatcher, 2014. "Implications of a Discard Ban in Multispecies Quota Fisheries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(3), pages 463-472, July.
    3. Wehner, Nicholas & Mackay, Mary & Jennings, Sarah & van Putten, E.I. & Sibly, Hugh & Yamazaki, Satoshi, 2018. "When push comes to shove in recreational fishing compliance, think ‘nudge’," MarXiv 2fyuc, Center for Open Science.
    4. Rögnvaldur Hannesson, 2011. "When is fish quota enforcement worth while? A study of the Northeast Arctic cod," Journal of Bioeconomics, Springer, vol. 13(2), pages 139-160, July.
    5. Murphy, James J. & Stranlund, John K., 2007. "A laboratory investigation of compliance behavior under tradable emissions rights: Implications for targeted enforcement," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 196-212, March.
    6. Murphy, James J. & Stranlund, John K., 2006. "Direct and market effects of enforcing emissions trading programs: An experimental analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 61(2), pages 217-233, October.
    7. John Stranlund, 2007. "The regulatory choice of noncompliance in emissions trading programs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(1), pages 99-117, September.
    8. Itziar Lazkano & Linda Nøstbakken, 2016. "Quota Enforcement and Capital Investment in Natural Resource Industries," Marine Resource Economics, University of Chicago Press, vol. 31(3), pages 339-354.
    9. Parés, Claudio & Dresdner, Jorge & Salgado, Hugo, 2015. "Who should set the total allowable catch? Social preferences and legitimacy in fisheries management institutions," Marine Policy, Elsevier, vol. 54(C), pages 36-43.
    10. Lars Hansen & Frank Jensen & Linda Nøstbakken, 2014. "Quota Enforcement in Resource Industries: Self-Reporting and Differentiated Inspections," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(4), pages 539-562, August.
    11. Marta Biancardi & Gianluca Iannucci & Giovanni Villani, 2022. "Groundwater Exploitation and Illegal Behaviors in a Differential Game," Dynamic Games and Applications, Springer, vol. 12(3), pages 996-1009, September.
    12. Okumura, Yasunori, 2016. "Individual transferable quotas in Cournot competition," Economic Modelling, Elsevier, vol. 55(C), pages 315-321.
    13. Alvear, Santiago A. Bermeo, 2006. "Modelling an ITQ Scheme in the Galapagos Marine Reserve Spiny Lobster Fishery," 2006 Conference, August 24-25, 2006, Nelson, New Zealand 31973, New Zealand Agricultural and Resource Economics Society.
    14. Jorge Dresdner & Carlos Chávez & Omar Barriga, 2015. "Compliance in Artisanal Fisheries: Do Morality, Legitimacy, and Peer Effects Matter?," Marine Resource Economics, University of Chicago Press, vol. 30(4), pages 349-370.
    15. Stranlund, John K., 2006. "Risk Aversion and Compliance in Markets for Pollution Control," Working Paper Series 14522, University of Massachusetts, Amherst, Department of Resource Economics.
    16. Akpalu, Wisdom, 2011. "Determinants of noncompliance with light attraction regulation among inshore fishers in Ghana," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(2), pages 172-177, April.
    17. Hatcher, Aaron, 2012. "Market power and compliance with output quotas," Resource and Energy Economics, Elsevier, vol. 34(2), pages 255-269.
    18. Hugo Salgado & Carlos Chávez, 2016. "Using Taxes to Deter Illegal Fishing in ITQ Systems," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(4), pages 709-724, August.
    19. Rosas-Munoz, Juan & Espinola-Arredondo, Ana & Munoz-Garcia, Felix, 2022. "Don't Leave the Regulator Alone in the Commons: How Fishing Cooperatives Can Help Ameliorate Inefficiencies," Working Papers 2022-1, School of Economic Sciences, Washington State University.
    20. Nøstbakken, Linda, 2008. "Fisheries law enforcement--A survey of the economic literature," Marine Policy, Elsevier, vol. 32(3), pages 293-300, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Murphy, James J. & Stranlund, John K., 2007. "A laboratory investigation of compliance behavior under tradable emissions rights: Implications for targeted enforcement," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 196-212, March.
    2. Stranlund, John K. & Murphy, James J. & Spraggon, John M., 2011. "An experimental analysis of compliance in dynamic emissions markets," Journal of Environmental Economics and Management, Elsevier, vol. 62(3), pages 414-429.
    3. Alessio D’Amato & Edilio Valentini, 2011. "Enforcement and environmental quality in a decentralized emission trading system," Journal of Regulatory Economics, Springer, vol. 40(2), pages 141-159, October.
    4. John Stranlund, 2007. "The regulatory choice of noncompliance in emissions trading programs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(1), pages 99-117, September.
    5. Murphy, James J. & Stranlund, John K., 2006. "Direct and market effects of enforcing emissions trading programs: An experimental analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 61(2), pages 217-233, October.
    6. Murphy, James J. & Stranlund, John K., 2003. "An Experimental Analysis Of Compliance Behavior In Emissions Trading Programs: Some Preliminary Results," 2003 Annual meeting, July 27-30, Montreal, Canada 22039, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Stranlund, John K., 2006. "Risk Aversion and Compliance in Markets for Pollution Control," Working Paper Series 14522, University of Massachusetts, Amherst, Department of Resource Economics.
    8. Stranlund, John K. & Chávez, Carlos A. & Villena, Mauricio G., 2009. "The optimal pricing of pollution when enforcement is costly," Journal of Environmental Economics and Management, Elsevier, vol. 58(2), pages 183-191, September.
    9. Inés Macho-Stadler, 2008. "Environmental regulation: choice of instruments under imperfect compliance," Spanish Economic Review, Springer;Spanish Economic Association, vol. 10(1), pages 1-21, March.
    10. Carmen Arguedas, 2008. "To Comply or Not To Comply? Pollution Standard Setting Under Costly Monitoring and Sanctioning," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(2), pages 155-168, October.
    11. Sang-Ho Lee & Sang-Ha Park, 2005. "Tradable Emission Permits Regulations: The Role of Product Differentiation," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 4(3), pages 249-261, December.
    12. John K. Stranlund & James J. Murphy & John M. Spraggon, 2013. "Imperfect enforcement of emissions trading and industry welfare: a laboratory investigation," Chapters, in: John A. List & Michael K. Price (ed.), Handbook on Experimental Economics and the Environment, chapter 9, pages 265-288, Edward Elgar Publishing.
    13. Phillia Restiani & Regina Betz, 2010. "A Theoretical Model of Optimal Compliance Decisions under Different Penalty Designs in Emissions Trading Markets," Environmental Economics Research Hub Research Reports 1086, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
    14. Konishi, Hideki, 2005. "Intergovernmental versus intersource emissions trading when firms are noncompliant," Journal of Environmental Economics and Management, Elsevier, vol. 49(2), pages 235-261, March.
    15. Emilson Silva & Xie Zhu, 2008. "Global trading of carbon dioxide permits with noncompliant polluters," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(4), pages 430-459, August.
    16. Stranlund, John K., 2010. "Should we impose emissions taxes that firms evade?," Working Paper Series 93967, University of Massachusetts, Amherst, Department of Resource Economics.
    17. Villegas, Clara & Coria, Jessica, 2009. "Taxes, Permits and the Adoption of Abatement Technology under Imperfect Compliance," Working Papers in Economics 368, University of Gothenburg, Department of Economics.
    18. Carolos Chavez & John Stanlund, 2003. "Enforcing Transferable Permit Systems in the Presence of Market Power," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 25(1), pages 65-78, May.
    19. Ian MacKenzie & Markus Ohndorf, 2012. "Optimal monitoring of credit-based emissions trading under asymmetric information," Journal of Regulatory Economics, Springer, vol. 42(2), pages 180-203, October.
    20. Akira Maeda, 2012. "Setting trigger price in emissions permit markets equipped with a safety valve mechanism," Journal of Regulatory Economics, Springer, vol. 41(3), pages 358-379, June.

    More about this item

    Keywords

    enforcement; illegal fishing; individual transferable quotas; quota markets; L51; Q22;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:enreec:v:31:y:2005:i:3:p:303-324. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.