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Moral Hazard Problems in Fisheries Regulation: The Case og Illegal Landings

Author

Listed:
  • Frank Jensen

    (Institute of Local Government Studies, Denmark)

  • Niels Vestergaard

    (Department of Environmental and Business Economics, University of Southern Denmark)

Abstract

This paper treats illegal landings as a moral hazard problem that arises, since individual catches are unobservable to society and hence private information. A tax/subsidy mechanism taking into account the asymmetric information problem is formulated as a solution to problems with illegal landings. The incentive scheme uses fish stock size as the tax variable, and can be seen as an alternative to a control policy. Rough estimates from a simulation study suggest that the incentive scheme is potentially useful. The incentive scheme also has potential application as an instrument to the solution of by-catch and discard problems.

Suggested Citation

  • Frank Jensen & Niels Vestergaard, 2000. "Moral Hazard Problems in Fisheries Regulation: The Case og Illegal Landings," Working Papers 9/00, University of Southern Denmark, Department of Sociology, Environmental and Business Economics.
    • Handle: RePEc:sdk:wpaper:9
    as

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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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.

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