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Illegal Landings: An Aggregate Catch Self-Reporting Mechanism

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  • Urs Steiner Brandt
  • Niels Vestergaard

Abstract

To solve the problem of illegal landings this article proposes a new tax mechanism based on the regulator's own aggregate catch estimates and ex ante self-reports of planned catch by fishermen. We show that the mechanism avoids illegal landings while ensuring (nearly) optimal exploitation and generating (nearly) correct entry and exit incentives. Finally we simulate the mechanism for the Danish cod fishery in Kattegat to obtain a rough indicator of the size of the tax. It turns out that the average tax payment as a percentage of profit is surprisingly low. Copyright 2006, Oxford University Press.

Suggested Citation

  • Urs Steiner Brandt & Niels Vestergaard, 2006. "Illegal Landings: An Aggregate Catch Self-Reporting Mechanism," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 974-985.
    • Handle: RePEc:oup:ajagec:v:88:y:2006:i:4:p:974-985
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2006.00910.x
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    7. Jensen, Frank & Vestergaard, Niels, 2002. "Moral hazard problems in fisheries regulation: the case of illegal landings and discard," Resource and Energy Economics, Elsevier, vol. 24(4), pages 281-299, November.
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    Cited by:

    1. Jens Abildtrup & Frank Jensen, 2012. "The Regulation of Hunting: A Population Tax," IFRO Working Paper 2012/2, University of Copenhagen, Department of Food and Resource Economics.
    2. Abildtrup, Jens & Jensen, Frank, 2014. "The regulation of hunting: A game population based tax on hunters," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 95(3).
    3. Frank Jensen & Niels Vestergaard, 2004. "Fisheries Management with Multiple Market Failures," Working Papers 54/04, University of Southern Denmark, Department of Sociology, Environmental and Business Economics.
    4. Margrethe Aanesen & Claire Armstrong, 2013. "Stakeholder Influence and Optimal Regulations: A Common-Agency Analysis of Ecosystem-Based Fisheries Regulations," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 169(2), pages 320-338, June.
    5. Lars Gårn Hansen & Frank Jensen & Eirik S. Amundsen, 2014. "Regulating Groundwater Use in Developing Countries: A Feasible Instrument for Public Intervention," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 170(2), pages 317-335, June.
    6. Margrethe Aanesen & Claire W. Armstrong, 2014. "The Implications of Environmental NGO Involvement in Fisheries Management," Land Economics, University of Wisconsin Press, vol. 90(3), pages 560-573.
    7. Jensen, Frank & Nøstbakken, Linda, 2016. "A corporate-crime perspective on fisheries: liability rules and non-compliance," Environment and Development Economics, Cambridge University Press, vol. 21(3), pages 371-392, June.
    8. Flaaten, Ola & Schulz, Carl Erik, 2010. "Triple win for trade in renewable resource goods by use of export taxes," Ecological Economics, Elsevier, vol. 69(5), pages 1076-1082, March.
    9. Jensen, Frank, 2008. "Uncertainty and asymmetric information: An overview," Marine Policy, Elsevier, vol. 32(1), pages 89-103, January.
    10. Margrethe Aanesen & Claire W. Armstrong, 2016. "The Political Game of European Fisheries Management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(4), pages 745-763, April.
    11. José Santiago Arroyo Mina, 2012. "Dilemas sociales de la pesca en el pacífico colombiano: un análisis desde la teoría de juegos," Revista Facultad de Ciencias Económicas, Universidad Militar Nueva Granada, June.
    12. Jensen, Frank & Vestergaard, Niels, 2007. "Asymmetric information and uncertainty: The usefulness of logbooks as a regulation measure," Ecological Economics, Elsevier, vol. 63(4), pages 815-827, September.
    13. Nøstbakken, Linda, 2008. "Fisheries law enforcement--A survey of the economic literature," Marine Policy, Elsevier, vol. 32(3), pages 293-300, May.

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