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Rent-seeking and Quota Regulation of a Renewable Resource

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  • Harald Bergland
  • Derek J. Clark
  • Pål Andreas Pedersen

Abstract

The paper deals with rent-seeking behaviour among agents competing for future shares of a common renewable natural resource. Rent-seeking might become profitable when the agents expect that the distribution of the natural resource in future periods will be dependent on the agents' extraction of the resource in the past, even though high exploitation might reduce the stock that future individual quotas will be based upon. Whether aggressive rent-seeking behaviour by one agent will encourage other agents to rent-seek more, however, is generally found to be ambiguous.

Suggested Citation

  • Harald Bergland & Derek J. Clark & Pål Andreas Pedersen, 2001. "Rent-seeking and Quota Regulation of a Renewable Resource," Studies in Economics 0106, School of Economics, University of Kent.
    • Handle: RePEc:ukc:ukcedp:0106
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    File URL: https://www.kent.ac.uk/economics/repec/0106.pdf
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    References listed on IDEAS

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    12. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62(2), pages 124-124.
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    Cited by:

    1. Urs Steiner Brandt, 2006. "The Effect of Climate Change on the Probability of Conservation: Fisheries Regulation as a Policy Contest," Working Papers 72/06, University of Southern Denmark, Department of Sociology, Environmental and Business Economics.

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    More about this item

    Keywords

    Rent-seeking; quota regulation; renewable resources;
    All these keywords.

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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