Regulating multiple externalities: the case of Nordic fisheries
Research output: Contribution to journal › Journal article › Research › peer-review
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.
Original language | English |
---|---|
Journal | Marine Resource Economics |
Volume | 31 |
Issue number | 2 |
Pages (from-to) | 233-257 |
Number of pages | 25 |
ISSN | 0738-1360 |
DOIs | |
Publication status | Published - 2016 |
- Climate change, economic efficiency, externalities, fisheries, fuel efficiency, regulation
Research areas
ID: 160979291