Regulating Multiple Externalities: The Case of Nordic Fisheries
Author
Summary, in English
Open access is a well-known externality problem in fisheries causing excess capacity and overfishing. Due to global warming, externality problems from CO2 emissions have gained increased interest. With two externality problems, a first-best optimum can be achieved by using two regulatory instruments. However, solving the open-access externality problem also affects CO2 emissions. By using a bio-economic model covering Iceland, Norway, Denmark, Sweden, and the Faroe Islands, it is shown that regulations of the open-access externality problem have a large effect on both economic performance and CO2 emissions, while an additional CO2 regulation only has minor effects. The second-best solution achieved by only regulating open access reduces emissions by approximately 50% compared to current fisheries, with the exception of Iceland, which already has a well-developed fisheries management system.
Department/s
Publishing year
2016-04-01
Language
English
Pages
233-257
Publication/Series
Marine Resource Economics
Volume
31
Issue
2
Document type
Journal article
Publisher
MRE Foundation, Inc.
Topic
- Economics
Keywords
- Climate change
- economic efficiency
- externalities
- regulation
- fisheries
- fuel efficiency
- Q22
- Q54
Status
Published
ISBN/ISSN/Other
- ISSN: 0738-1360