Abstract

Open access is a well-known externality problem in fisheries causing excess capacity and overfishing. Due to global warming, externality problems from CO2 emissions have gained increased interest. With two externality problems, a first-best optimum can be achieved by using two regulatory instruments. However, solving the open-access externality problem also affects CO2 emissions. By using a bio-economic model covering Iceland, Norway, Denmark, Sweden, and the Faroe Islands, it is shown that regulations of the open access externality problem have a large effect on both economic performance and CO2 emissions, while an additional CO2 regulation only has minor effects. The second-best solution achieved by only regulating open access reduces emissions by approximately 50% compared to current fisheries, with the exception of Iceland, which already has a well-developed fisheries management system.

Keywords

Climate change; economic efficiency; externalities; fisheries; fuel efficiency; regulation

Published in

Marine Resource Economics
2016, Volume: 31, number: 2, pages: 233-257
Publisher: UNIV CHICAGO PRESS

SLU Authors

• Waldo, Staffan

  • Department of Economics, Swedish University of Agricultural Sciences
    

Sustainable Development Goals

SDG14 Conserve and sustainably use the oceans, seas and marine resources for sustainable development


UKÄ Subject classification

Economics


Publication identifier

DOI: https://doi.org/10.1086/685286

Permanent link to this page (URI)

https://res.slu.se/id/publ/79917