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A Tale Of Two Clams: Policy Anticipation And Industry Productivity

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  • Brandt, Sylvia J.

Abstract

Sound environmental regulation must achieve environmental objectives while maximizing economic efficiency. This paper evaluates the impact of regulation on efficiency by measuring annual productivity across regulatory regimes in two similar fisheries with differing policy expectations. Anticipation of regulatory change produced strategic behavior in one fishery, leading to depressed productivity; in the other, regulatory change was not expected, and productivity did not suffer. These results imply that fisheries regulation should take into account both firms' policy expectations and the potentially perverse incentives that may be created by policy change.

Suggested Citation

  • Brandt, Sylvia J., 2003. "A Tale Of Two Clams: Policy Anticipation And Industry Productivity," Working Paper Series 14523, University of Massachusetts, Amherst, Department of Resource Economics.
    • Handle: RePEc:ags:umamwp:14523
    DOI: 10.22004/ag.econ.14523
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    References listed on IDEAS

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    Cited by:

    1. Barbara Hutniczak & Niels Vestergaard & Dale Squires, 2019. "Policy Change Anticipation in the Buyback Context," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(1), pages 111-132, May.

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