A Note on Overfishing, Fishing Rights and Futures Markets
EUROPEAN J. OF LAW AND ECONOMICS
Posted: 19 Jun 1997
Abstract
Introducing a futures market for fishing rights would increase utility for risk averse fishermen. We use the EV model to analyze possible reductions in (expected) profits for futures trading that would make fishermen indifferent between the situation with and without futures markets. It is found that a futures market for fishing rights enables policy makers to pursue substantial cuts in the size of annual quotas without hurting fishermen. In light of current overfishing and pressure from the sector to avoid dramatic cutbacks in effort, this is an important policy result.
JEL Classification: G10, G13, Q22
Suggested Citation: Suggested Citation
Bulte, Erwin H. and Pennings, Joost M. E., A Note on Overfishing, Fishing Rights and Futures Markets. EUROPEAN J. OF LAW AND ECONOMICS, Available at SSRN: https://ssrn.com/abstract=8378
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