Who Should Pay the Administrative Costs of an ITQ Fishery?

CARLOS A. CHÁVEZ

doi:10.5950/0738-1360-28.3.243

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CARLOS A. CHÁVEZ^1,*

¹Universidad de Concepción

^*Carlos A. Chávez is a professor, Departamento de Economía, Research Nucleus on Environmental and Natural Resource Economics, and Interdisciplinary Center for Aquaculture Research (INCAR), Universidad de Concepción, Victoria 471, Oficina 230, Concepción, Chile (email: cchavez@udec.cl).

Abstract

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 article 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 costs.

JEL Classification Codes: L51, Q22

Citation Download Citation

CARLOS A. CHÁVEZ "Who Should Pay the Administrative Costs of an ITQ Fishery?," Marine Resource Economics 28(3), 243-261, (1 September 2013). https://doi.org/10.5950/0738-1360-28.3.243

Published: 1 September 2013