A Note on Overfishing, Fishing Rights and Futures Markets

EUROPEAN J. OF LAW AND ECONOMICS

Posted: 19 Jun 1997

See all articles by Erwin H. Bulte

Erwin H. Bulte

Tilburg University - Department of Economics; Wageningen University

Joost M. E. Pennings

Maastricht University; Wageningen UR; University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

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

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

Erwin H. Bulte

Tilburg University - Department of Economics ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 466 9111 (Phone)

Wageningen University

Hollandseweg 1
6706 KN
Wageningen
Netherlands

Joost M. E. Pennings (Contact Author)

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

HOME PAGE: http://marketing-finance.nl/cv/cvpennings.pdf

Wageningen UR ( email )

Hollandseweg 1
Wageningen, 6706KN
Netherlands

HOME PAGE: http://marketing-finance.nl/cv/cvpennings.pdf

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

1301 W. Gregory Drive
326 Mumford Hall MC-710
Urbana, IL 61801
United States
217-244-1284 (Phone)
217-333-5538 (Fax)

HOME PAGE: http://marketing-finance.nl/cv/cvpennings.pdf

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
946
PlumX Metrics