Quota enforcement in resource industries: self-reporting and differentiated inspections

Publikation: Working paperForskning

However, in many industries there is concern about the basic eectiveness of quotas due to non-compliance. We develop an enforcement model of a quota-regulated resource and focus on a situation with signicant non-compliance and exogenous constraints on nes and enforcement budget. We propose a new enforcement system based on self-reporting of excess extraction and explicit dierentiation of inspection rates based on compliance history. We show that such a system increases the eectiveness of quota management by allowing the regulator to implement a wider range of aggregate extraction targets than under the traditional enforcement system, while ensuring an ecient allocation of aggregate extraction.
OriginalsprogEngelsk
UdgiverInstitute of Food and Resource Economics, University of Copenhagen
UdgaveRevised may 2011
Antal sider32
StatusUdgivet - 2011
NavnFOI Working Paper
Nummer2010/10

ID: 33028446