Unraveling the multiple margins of rent generation from individual transferable quotas

Matthew N. Reimer, Joshua Abbott, James E. Wilen

    Research output: Contribution to journalArticle

    24 Scopus citations

    Abstract

    Individual transferable quotas (ITQs) induce changes along both the extensive margin-via consolidation of quota among fewer vessels-and the intensive margin, as harvesters adjust their behavior to ITQ incentives. We use ITQ introduction in the Bering Sea crab fishery to decompose the sources of rent generation across both margins. We embed an empirically calibrated structural model of the harvesting process into a sector-level model, allowing us to experimentally "unravel" the ITQ treatment. We show that the magnitude and source of rent generation under ITQs critically depends on the manner and degree of rent dissipation before ITQs are implemented. (JEL Q22, Q28).

    Original languageEnglish (US)
    Pages (from-to)538-559
    Number of pages22
    JournalLand Economics
    Volume90
    Issue number3
    DOIs
    StatePublished - Aug 2014

      Fingerprint

    ASJC Scopus subject areas

    • Environmental Science (miscellaneous)
    • Economics and Econometrics

    Cite this