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Quota Consolidation in Norwegian Coastal Fisheries

Author

Listed:
  • Keita Abe

    (Musashi University
    Iwate University)

  • Linda Nøstbakken

    (Statistics Norway
    SNF Centre for Applied Research at NHH)

  • Mads Fjeld Wold

    (NTNU Social Research
    Department of Economics
    SNF Centre for Applied Research at NHH)

Abstract

Balancing the trade-off between economic efficiency and social objectives has been a challenge for natural resource managers under rights-based management. While the actual prioritization should be guided by social preferences, the mechanisms and consequences of the quota transfer system need to be well understood. We investigate the effects of the quota transfer scheme implemented in the Norwegian coastal cod fishery in 2004. This is a small-scale fishery that has traditionally been important for employment in the northern part of Norway. Using vessel-level quota registry data, we estimate the effect of quota trading on vessel exit using a difference-in-differences approach that exploits variation in implementation timing between regulatory groups. In addition, we describe the outcome of quota consolidation with descriptive statistics. Our results confirm that the quota transfer scheme accelerates the exit of vessels from the fishery by at least 5% points in the short run. The descriptive analysis reveals great heterogeneity in both the size and geographic location of exiting vessels, suggesting that the scheme has distributional impacts. While the policy change has the expected effects in the short run, our results suggest that the implications of consolidation last longer. This has implications for policymakers trying to balance economic efficiency and social objectives of rational fishery management.

Suggested Citation

  • Keita Abe & Linda Nøstbakken & Mads Fjeld Wold, 2024. "Quota Consolidation in Norwegian Coastal Fisheries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(5), pages 1295-1326, May.
    • Handle: RePEc:kap:enreec:v:87:y:2024:i:5:d:10.1007_s10640-024-00866-x
    DOI: 10.1007/s10640-024-00866-x
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    References listed on IDEAS

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    More about this item

    Keywords

    Rights-based management; Efficiency; Equity; Fisheries management;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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