Regulation of Renewable Resources in Federal Systems: The Case of Fishery in th EU

Frank Jensen () and Niels Vestergaard ()
Additional contact information
Frank Jensen: Institute of Local Government Studies, Denmark
Niels Vestergaard: Department of Environmental and Business Economics, University of Southern Denmark

No 3/99, Working Papers from University of Southern Denmark, Department of Sociology, Environmental and Business Economics

Abstract: The EU regulation of fisheries is decided in two levels. The level of the total allowable catch (TAC) for the most important species is decided every year by the Council of Minsters. The TACs are allocated to the Member States as quotas. The Member States determine who is going to harvest the quota. There is, however, an information problem associated with this structure. It does not take into account how efficient fishermen in different countries are. In this paper we model the information problem as an adverse selection problem and analyse an EU tax coupled to effort as an alternative to the TAC system. We work with the hypothesis that EU suffers from a fiscal illusion and includes tax revenue in the objective function in order to finance other, also inefficient, operations. Even in the light of these imperfections there are at least two reasons for recommending an EU tax. First, it can be used to correct part of the market failure associated with fishery. Second, it can be used to secure correct revealation of types in the light of asymmetric information.

Pages: 52 pages
Date: 1999-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sdu.dk/~/media/Files/Om_SDU/Institutter/Miljo/ime/wp/Jensen3.ashx First version, 1999-07 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.sdu.dk:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sdk:wpaper:3

Access Statistics for this paper

More papers in Working Papers from University of Southern Denmark, Department of Sociology, Environmental and Business Economics Contact information at EDIRC.
Bibliographic data for series maintained by Ulla H. Oehlenschläger ( this e-mail address is bad, please contact ).