A Tale of Two Clams: Policy Anticipation and Industry Productivity

University of Massachusetts, Amherst Working Paper No. 2003-10

28 Pages Posted: 29 Oct 2003

See all articles by Sylvia Brandt

Sylvia Brandt

University of Massachusetts at Amherst - College of Natural Resources & the Environment - Department of Resource Economics

Date Written: August 2003

Abstract

Sound environmental regulation must achieve environmental objectives while maximizing economic efficiency. This paper evaluates the impact of regulation on efficiency by measuring annual productivity across regulatory regimes in two similar fisheries with differing policy expectations. Anticipation of regulatory change produced strategic behavior in one fishery, leading to depressed productivity; in the other, regulatory change was not expected, and productivity did not suffer. These results imply that fisheries regulation should take into account both firms' policy expectations and the potentially perverse incentives that may be created by policy change.

Keywords: Fisheries, resource regulation, productivity, property rights

JEL Classification: L1, L5, L2, Q2

Suggested Citation

Brandt, Sylvia, A Tale of Two Clams: Policy Anticipation and Industry Productivity (August 2003). University of Massachusetts, Amherst Working Paper No. 2003-10, Available at SSRN: https://ssrn.com/abstract=437686 or http://dx.doi.org/10.2139/ssrn.437686

Sylvia Brandt (Contact Author)

University of Massachusetts at Amherst - College of Natural Resources & the Environment - Department of Resource Economics ( email )

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Amherst, MA 01003-9246
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