Regulating fisheries under uncertainty
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Regulating fisheries under uncertainty. / Hansen, Lars Gårn; Jensen, Frank.
I: Resource and Energy Economics, Bind 50, 2017, s. 164-177.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Regulating fisheries under uncertainty
AU - Hansen, Lars Gårn
AU - Jensen, Frank
PY - 2017
Y1 - 2017
N2 - Regulator uncertainty is decisive for whether price or quantity regulation maximizes welfare in fisheries. In this paper, we develop a model of fisheries regulation that includes ecological uncertainly, variable economic uncertainty as well as structural economic uncertainty. We aggregate the effects of these uncertainties into a single welfare measure for comparing tax and quota regulation. It is shown that quotas are always preferred to fees when structural economic uncertainty dominates. Since most regulators are subject to this kind of uncertainty, this result is a potentially important qualification of the pro-price regulation message dominating the fisheries economics literature. We also believe that the model of a fishery developed in this paper could be applied to the regulation of other renewable resources where regulators are subject to uncertainty either directly or with some modification.
AB - Regulator uncertainty is decisive for whether price or quantity regulation maximizes welfare in fisheries. In this paper, we develop a model of fisheries regulation that includes ecological uncertainly, variable economic uncertainty as well as structural economic uncertainty. We aggregate the effects of these uncertainties into a single welfare measure for comparing tax and quota regulation. It is shown that quotas are always preferred to fees when structural economic uncertainty dominates. Since most regulators are subject to this kind of uncertainty, this result is a potentially important qualification of the pro-price regulation message dominating the fisheries economics literature. We also believe that the model of a fishery developed in this paper could be applied to the regulation of other renewable resources where regulators are subject to uncertainty either directly or with some modification.
U2 - 10.1016/j.reseneeco.2017.08.001
DO - 10.1016/j.reseneeco.2017.08.001
M3 - Journal article
VL - 50
SP - 164
EP - 177
JO - Resource and Energy Economics
JF - Resource and Energy Economics
SN - 0928-7655
ER -
ID: 183473373