 Risk, restrictive quotas, and income smoothingRobbert-Jan Schaap, Exequiel Gonzalez-Poblete, Karin Loreto Silva Aedo and Florian Diekert Ecological Economics, 2024, vol. 225, issue C Abstract: Income shocks due to environmental variability, climatic events or overexploitation can result in severe hardships for natural resource users which are unable to smooth consumption. Artisanal fishers in Chile vary in their ability to smooth consumption due to regulatory differences. Utilizing these regulatory differences, we find that survey participants that harvest species which are governed by restrictive quotas have preferences for more precautionary savings compared to survey participants whose harvest is not restricted. The inability to adjust harvest increases the importance of self-insurance through saving. Especially in developing countries, where formal saving opportunities are limited, policies that aim at stabilizing resource productivity through restrictive quotas need to account for available consumption smoothing strategies to avoid unintended welfare losses. Keywords: Bioeconomics; Labour flexibility; Property rights; Higher order risk preferences; Precautionary saving; Fisheries (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:225:y:2024:i:c:s0921800924002167 DOI: 10.1016/j.ecolecon.2024.108319 Access Statistics for this article Ecological Economics is currently edited by C. J. Cleveland More articles in Ecological Economics from Elsevier |
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