In contrast with what we perceive is the conventional wisdom about setting a second-best emissions tax to control a uniformly mixed pollutant under uncertainty, we demonstrate that setting a uniform tax equal to expected marginal damage is not generally efficient under incomplete information about firms’ abatement costs and damages from pollution.
Implementation and management of an ITQ fishery involves significant and costly administrative activities. These activities include formulating and implementing policy rules, monitoring and enforcement to deter illegal behavior, and economic and marine research. In this project we construct a model of a competitive ITQ system to analyze how the distribution of administrative costs between the public and a fishing industry can affect the equilibrium in the quota market, including equilibrium level of administrative costs, and derive results about the optimal distribution of these
The high cost of starting up seaweed cultivation projects along the Chilean coastline is the main hurdle to the aquaculture industry restoring areas where this key marine resource has been heavily harvested.
A task team of international and local fisheries experts, including an EfD researcher, recently assisted the Chilean government with an extensive review of a new fisheries law, in a bid to help the administration address public concerns that an important amendment to this law was tainted with corruption.
Air pollution caused by wood-burning in homes for cooking and heating purposes is one of the most important environmental problems in Chile, affecting thousands of families and causing early mortality. EfD Chile researchers study families’ and producers’ economic behavior, and advise the government to incorporate effective economic incentives to design better pollution control policies.
“We make the connection between the fishers’ living conditions and the fish stock’s status.” The newest EfD Center is not a newcomer to influencing fisheries policy. The Research Nucleus on Environmental and Natural Resource Economics at the Universidad de Concepcion has been active for several years in bringing an economics perspective into fisheries management in Chile.