Open AccessTHE PROBLEM OF NONMALLEABLE CAPITAL REVISITED; A STUDY OF THE PACIFIC HALIBUT FISHERY
Author(s) -
Schellberg Thomas
Publication year - 1993
Publication title -
natural resource modeling
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.28
H-Index - 32
eISSN - 1939-7445
pISSN - 0890-8575
DOI - 10.1111/j.1939-7445.1993.tb00151.x
Subject(s) - fishing , halibut , fishery , capitalization , capital (architecture) , economics , business , fish <actinopterygii> , geography , biology , linguistics , philosophy , archaeology
It has been suggested in the literature on commercial fisheries that fishing capital may be nonmalleable, i.e., not easily moved from one fleet to another, and that the socially optimal rate of capitalization of boats may depend on the degree of malleability (irreversibility) of the fishing fleet. To find out how irreversibility affects optimal regulation, two of the many possible regulatory tools, unallocated quotas and catch taxes, are examined. These optimal policies are derived, alternatively assuming malleable and nonmalleable fishing capital. Using a simulation of the Pacific halibut fishery, the results obtainable through catch quotas are shown to be inferior to those obtainable through taxes, but that the degree of malleability of capital has a surprisingly small impact on policy. A sensitivity analysis is performed, rerunning these simulations over a variety of parameter values. The previous results are largely borne out.