Overharvesting the traditional fishery with a captured regulator
Rent dissipation in open access fisheries is a well studied problem (Gordon 1954; Homans and Wilen 1997). Regulation is seen as a possibly remedy to the externality of entry, which eventually leads to zero profits and depressed stocks. Despite regulation, drastic declines have occurred in many regulated fisheries worldwide, prompting a discussion of economic, biological, and environmental phenomena that may lead to declines. We explore one case when a regulator permits overfishing in the context of a traditional fishery model. Influenced by industry to reduce effort restrictions, regulators often rely on gear,season length, and other efficiency restrictions to achieve management goals. Under standard assumptions we find that when the regulator is "captured" by the members of the industry, he unambiguously allows overfishing by reaching a lower stock and higher effort than is socially optimal. This steady state has zero rents, but a higher stock and higher effort than the open access steady state.
|Date of creation:||01 Dec 2000|
|Contact details of provider:|| Postal: 207 Giannini Hall #3310, Berkeley, CA 94720-3310|
Phone: (510) 642-3345
Fax: (510) 643-8911
Web page: http://www.escholarship.org/repec/are_ucb/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Karpoff, Jonathan M, 1987. "Suboptimal Controls in Common Resource Management: The Case of the Fishery," Journal of Political Economy, University of Chicago Press, vol. 95(1), pages 179-194, February.
- Berck, Peter & Perloff, Jeffrey M, 1984.
"An Open-Access Fishery with Rational Expectations,"
Econometric Society, vol. 52(2), pages 489-506, March.
- Berck, Peter & Perloff, Jeffrey M, 1982. "An Open-Access Fishery with Rational Expectations," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt876499mq, Department of Agricultural & Resource Economics, UC Berkeley.
- Dupont, Diane P., 1990. "Rent dissipation in restricted access fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 19(1), pages 26-44, July.
- Johnson, Ronald N & Libecap, Gary D, 1982. "Contracting Problems and Regulation: The Case of the Fishery," American Economic Review, American Economic Association, vol. 72(5), pages 1005-1022, December.
- Michel, Philippe, 1982. "On the Transversality Condition in Infinite Horizon Optimal Problems," Econometrica, Econometric Society, vol. 50(4), pages 975-985, July.
- Michel, P., 1980. "On the Transversality Condition in Infinite Horizon Optimal Problems," Cahiers de recherche 8024, Universite de Montreal, Departement de sciences economiques.
- 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.
- H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62, pages 124-124.
- Wilen, James E., 2000. "Renewable Resource Economists and Policy: What Differences Have We Made?," Journal of Environmental Economics and Management, Elsevier, vol. 39(3), pages 306-327, May. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:cdl:agrebk:qt94t2p8qq. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lisa Schiff)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.