Renewable resource regulation and uncertain prices: The role of financial structure and bankruptcy |
| |
Institution: | 1. School of Economics, University of Adelaide, Adelaide, Australia;2. Department of Economics, Tilburg University, P.O. Box 90153, 5000 LE Tilburg, The Netherlands |
| |
Abstract: | We analyze the interaction between regulatory policies and the financial structure of a fishery and show that firms with debts may respond differently to regulations than firms that have not accumulated debts. There are conditions where more stringent regulation is counterproductive, providing a perverse incentive to increase harvesting effort. We show that optimal regulation depends on the sector's financial structure, and demonstrate that there are cases when intervention is counterproductive, or too costly to implement. There are also cases where successful regulatory intervention can only be implemented when accompanied by a sufficiently large subsidy. |
| |
Keywords: | |
本文献已被 ScienceDirect 等数据库收录! |
|