Illegal Landings: An Aggregate Catch Self-Reporting Mechanism |
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| Authors: | Lars Gå rn,Hansen ,Frank,Jensen ,Urs Steiner,Brandt ,Niels,Vestergaard |
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| Affiliation: | Lars Gårn Hansen is Director of Research and Frank Jensen is senior research fellow, AKF, Institute of Local Government Studies—Denmark, Nyropsgade 37, DK-1602 Copenhagen V, Denmark;. Urs Steiner Brandt is associate professor and Niels Vestergaard is professor at University of Southern Denmark, Niels Bohrsvej 9, DK-6700 Esbjerg, Denmark. |
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| Abstract: | To solve the problem of illegal landings this article proposes a new tax mechanism based on the regulator's own aggregate catch estimates and ex ante self-reports of planned catch by fishermen. We show that the mechanism avoids illegal landings while ensuring (nearly) optimal exploitation and generating (nearly) correct entry and exit incentives. Finally we simulate the mechanism for the Danish cod fishery in Kattegat to obtain a rough indicator of the size of the tax. It turns out that the average tax payment as a percentage of profit is surprisingly low. |
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| Keywords: | entry and exit incentives fisheries illegal landings optimal exploitation self-reports tax mechanism |
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