ITQ Markets with administrative costs: An application to the industrial common sardine and anchovy fishery in Chile

Submitted by NENRE Concepcion on

Using numerical simulations of the mixed common sardine and anchovy fishery of central-southern Chile, we study the effects of the distribution of administrative costs between the government and the fishing industry in an individual transferable quota system. Consistent with recent theoretical results, we find that the level and distribution of the administrative costs between the public and private sector affects the period-by-period equilibrium quota price and number of active vessels.

Fisheries

Who should pay the administration costs of a ITQ system? An application base don numerical simulation.

Submitted by NENRE Concepcion on

Using numerical simulations of the mixed common sardine and anchovy fishery of central-southern Chile, we study the effects of the distribution of administrative costs between the government and the fishing industry in an individual transferable quota system. Consistent with recent theoretical results, we find that the level and distribution of the administrative costs between the public and private sector affects the period-by-period equilibrium quota price and number of active vessels.

Fisheries, Policy Design

Who should pay the enforcement costs of environmental and natural resource management policies?)

Submitted by NENRE Concepcion on

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

Fisheries, Policy Design