Access Restriction

Source CiteSeerX
Content type Text
File Format PDF
Subject Domain (in DDC) Computer science, information & general works ♦ Data processing & computer science
Subject Keyword New Zealand ♦ Itq Market ♦ Empirical Analysis ♦ Quota Price ♦ Market Activity ♦ Competitive Market ♦ Negative Consequence ♦ Increased Profitability ♦ Ecological Variability ♦ Input Price ♦ Rational Behavior ♦ 15-year Panel Dataset ♦ Sale Price ♦ Individual Transferable Quota ♦ Open Access ♦ Market Interest Rate ♦ Quota Lease ♦ Price Dispersion ♦ Effective Instrument ♦ Efficient Fishery Management ♦ Fishing Output
Abstract Abstract. Fisheries worldwide continue to suffer from the negative consequences of open access. In 1986, New Zealand responded by establishing an individual transferable quota (ITQ) system that by 1998 included 33 species and more than 150 markets for fishing quotas. We assess these markets in terms of trends in market activity, price dispersion, and the fundamentals determining quota prices. We find that market activity is sufficiently high to support a competitive market. Using a 15-year panel dataset, we also find evidence of economically rational behavior through the relationship between quota lease and sale prices and fishing output and input prices, ecological variability, and market interest rates. Controlling for these factors, our results show an increase in quota prices, consistent with increased profitability. Overall, the results suggest these markets are operating reasonably well, implying that ITQs can be effective instruments for efficient fisheries management.
Educational Role Student ♦ Teacher
Age Range above 22 year
Educational Use Research
Education Level UG and PG ♦ Career/Technical Study
Learning Resource Type Article