COMMON PROPERTY UNDER MANAGEMENT FLEXIBILITY: VALUATION, OPTIMAL EXPLOITATION, AND REGULATION

Abstract

Evidence shows that fisheries need close and careful attention because it has been observed that common property fisheries might be blamed for at least two sources of inefficiency. On one hand, resource overexploitation; on the other, the "static" or "passive" management applies, as outlined in the traditional fisheries literature. This paper presents a fishery model that embraces a combination of regulatory measures, an ITQ system, and a property tax rate under management flexibility. The model allows for a common property fishery to be exploited with full economic efficiency and flexibility in contrast to the mismanagement described in the traditional literature.Resource /Energy Economics and Policy,