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Icelandic Fisheries Management: Fees versus Quotas

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  • Weitzman, Martin
  • Gylfason, Thorvaldur

Abstract

We discuss the quota system by which Iceland?s fisheries have been managed since 1984, and explore its implications for economic efficiency as well as fairness. We argue that the shortcomings of the Icelandic quota system are inherent in any type of quota system applied to high-seas fishing. Further, we find that regulating access to a limited, stochastic common-property natural resource such as Iceland?s fish by fee rather than by quota ? i.e., by relying on price incentives rather than quantitative restrictions ? would constitute a more equitable and more efficient solution to the fisheries management problem. Our argument applies to the management of all open-seas fisheries, including the Common Fisheries Policy of the European Union.

Suggested Citation

  • Weitzman, Martin & Gylfason, Thorvaldur, 2003. "Icelandic Fisheries Management: Fees versus Quotas," CEPR Discussion Papers 3849, Centre for Economic Policy Research.
    • Handle: RePEc:cpr:ceprdp:3849
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    References listed on IDEAS

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    1. Weitzman, Martin L., 2002. "Landing Fees vs Harvest Quotas with Uncertain Fish Stocks," Journal of Environmental Economics and Management, Elsevier, vol. 43(2), pages 325-338, March.
    2. Helgason, Thorkell & Olafsson, Snjolfur, 1988. "An Icelandic fisheries model," European Journal of Operational Research, Elsevier, vol. 33(2), pages 191-199, January.
    3. Gylfason, Thorvaldur, 1991. "Iceland on the Outskirts of Europe: The Common Property Resource Problem," CEPR Discussion Papers 530, Centre for Economic Policy Research.
    4. Martin Feldstein, 1999. "Tax Avoidance And The Deadweight Loss Of The Income Tax," The Review of Economics and Statistics, MIT Press, vol. 81(4), pages 674-680, November.
    5. Weitzman, Martin L., 1974. "Free access vs private ownership as alternative systems for managing common property," Journal of Economic Theory, Elsevier, vol. 8(2), pages 225-234, June.
    6. Matthíasson, Thórólfur, 2001. "The Icelandic debate on the case for a fishing fee: a non-technical introduction," Marine Policy, Elsevier, vol. 25(4), pages 303-312, July.
    7. 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.
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    Cited by:

    1. Thorvaldur Gylfason & Jean-Pascal N. Nganou, 2025. "Balancing Natural Resources and Human and Social Capital: Pathways to Economic Diversification in Mongolia," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 67(2), pages 289-325, June.
    2. Thorvaldur Gylfason, 2004. "Monetary and Fiscal Management, Finance, and Growth," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 31(2), pages 71-91, June.
    3. Thorvaldur Gylfason, 2018. "From Natural Resources to Human Rights," CESifo Working Paper Series 7323, CESifo.
    4. Paul Hallwood, 2003. "Sustaining the Economic Rent of Oceanic Resources: The Case of Marine Protected Areas," Working papers 2003-20, University of Connecticut, Department of Economics.
    5. Thorvaldur Gylfason, 2011. "Natural Resource Endowment: A Mixed Blessing?," CESifo Working Paper Series 3353, CESifo.
    6. Thorvaldur Gylfason, 2018. "Political economy, Mr. Churchill, and natural resources," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 31(1), pages 23-34, May.
    7. Thorvaldur Gylfason & Jean-Pascal Nguessa Nganou, 2014. "Diversification, Dutch Disease, and Economic Growth: Options for Uganda," CESifo Working Paper Series 5095, CESifo.

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    JEL classification:

    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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