We study the effects of different tax schemes used in fisheries management in combination with an individual transferable quota system. We focus on the effects of taxes on equilibrium quota prices and on violations under the assumption that enforcement to induce compliance is imperfect and costly.

This paper studies the effects of different tax schemes used in fishery management in combination with an Individual Transferable Quota (ITQ) system. It focuses on the effects of taxes on equilibrium quota prices and violations under the assumption that enforcement to induce compliance is imperfect and costly. The use of taxes is motivated by the regulator’s need to recover costs for enforcement activities.