Unraveling the multiple margins of rent generation from individual transferable quotas

Matthew N. Reimer; Joshua Abbott; James E. Wilen

doi:10.3368/le.90.3.538

Unraveling the multiple margins of rent generation from individual transferable quotas

Matthew N. Reimer, Joshua Abbott, James E. Wilen

Research output: Contribution to journal › Article › peer-review

36 Scopus citations

Abstract

Individual transferable quotas (ITQs) induce changes along both the extensive margin-via consolidation of quota among fewer vessels-and the intensive margin, as harvesters adjust their behavior to ITQ incentives. We use ITQ introduction in the Bering Sea crab fishery to decompose the sources of rent generation across both margins. We embed an empirically calibrated structural model of the harvesting process into a sector-level model, allowing us to experimentally "unravel" the ITQ treatment. We show that the magnitude and source of rent generation under ITQs critically depends on the manner and degree of rent dissipation before ITQs are implemented. (JEL Q22, Q28).

Original language	English (US)
Pages (from-to)	538-559
Number of pages	22
Journal	Land Economics
Volume	90
Issue number	3
DOIs	https://doi.org/10.3368/le.90.3.538
State	Published - Aug 2014

ASJC Scopus subject areas

Environmental Science (miscellaneous)
Economics and Econometrics

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Unraveling the multiple margins of rent generation from individual transferable quotas

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