 Harvest efficiency and fishery discards under harvest uncertainty and trading restrictionsRajesh Singh and Quinn Weninger () Journal of Environmental Economics and Management, 2015, vol. 70, issue C, 72-91 Abstract: We study harvesting efficiency and the problem of discards under harvest uncertainty in a fishery that is managed with quotas. With only idiosyncratic harvest uncertainty, we show that frictionless post-harvest quota trade can achieve full efficiency and eliminate quota-overage discards completely. In the absence of such trade, we deduce an ad valorem tax/subsidy that eliminates discards while delivering a desired aggregate harvest target. Alternatively, we show that a hybrid policy, i.e., a combined quota and landings fee, can implement a manager׳s aggregate target harvest level efficiently and without discards. When harvest shocks, in addition, have a fishery-wide common component, post-harvest quota trading per se cannot eliminate discards; policy intervention in the form of either landing taxes or a hybrid scheme is needed. Given the prevalence of trading restrictions in many quota-managed fisheries worldwide, our paper offers important policy advice. Keywords: Harvest randomness; Trading restrictions; Catch-quota imbalance; Discards (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:jeeman:v:70:y:2015:i:c:p:72-91 DOI: 10.1016/j.jeem.2014.11.001 Access Statistics for this article Journal of Environmental Economics and Management is currently edited by M.A. Cole, A. Lange, D.J. Phaneuf, D. Popp, M.J. Roberts, M.D. Smith, C. Timmins, Q. Weninger and A.J. Yates More articles in Journal of Environmental Economics and Management from Elsevier |
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