| dc.description.abstract | We investigate the relationship between quota enforcement, compliance, and capital
accumulation in ITQ regulated fisheries. Over-extraction and over-capacity represent
two of the main fisheries management challenges, and we aim to model and analyze the
two jointly. In a stylized resource model, quota violating and complying firms invest
in capital, buy quotas, and choose their harvest. We show that in the short run, more
capacity increases illegal extraction, while a well-functioning quota market partially
alleviates this effect. We also show how tougher enforcement yields a double benefit
by directly improving compliance, and by indirectly reducing incentives to invest in
capacity, which improves future compliance. Our analysis thus contributes to the
literature on market-based management of renewable resources. | nb_NO |
