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Environmentally Conscious Fishing Communities and Fishing Quota Negotiations: The Impact of Environmental Externalities
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Eleftherios Filippiadis
Journal of Public Economic Theory, Volume: 27, Issue: 6, Start page: e70093
Swansea University Author:
Ilias Asproudis
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DOI (Published version): 10.1111/jpet.70093
Abstract
This paper uses a Nash bargaining model for analyzing negotiations between a fishing community and a vessel over fishing quotas and wages, for a given Total Allowable Catch imposed by the regulator. The analysis considers the environmental awareness of the community and whether the entire quota allo...
| Published in: | Journal of Public Economic Theory |
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| ISSN: | 1097-3923 1467-9779 |
| Published: |
Wiley
2025
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| Online Access: |
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| URI: | https://cronfa.swan.ac.uk/Record/cronfa71200 |
| Abstract: |
This paper uses a Nash bargaining model for analyzing negotiations between a fishing community and a vessel over fishing quotas and wages, for a given Total Allowable Catch imposed by the regulator. The analysis considers the environmental awareness of the community and whether the entire quota allotment is being leased, to examine how environmental externalities, unrelated to fishery sustainability, affect wages, employment, and social welfare. It is argued that if the maximum number of quotas is leased to the vessel, a system of transferable fishing rights is a vehicle for pure transfer payments from the vessel to the community, in the form of higher wages and leased quota revenues. In this context, employment level and social welfare are not affected by the fishing communities' environmental consciousness. However, if less than the maximum number of quotas is leased to the vessel, both wages and revenues from leased quotas are higher, while employment is lower when the community is environmentally conscious compared to when it is not. In such case, social welfare is higher when the community is environmentally conscious provided that the inverse demand for fish does not decline too sharply relative to the rate at which marginal pollution damages increase. Finally, it is shown that the strictness of the Total Allowable Catch regulations impacts both the community's well-being and the vessel's profitability. |
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| Keywords: |
bargaining, environmental protection, fishing community, fishing quotas |
| College: |
Faculty of Humanities and Social Sciences |
| Funders: |
This work is part of a project that has received funding from University of Macedonia Research Fund under the Basic Research 2023 funding program. The publication of this article in OA mode was financially supported by HEAL-Link. |
| Issue: |
6 |
| Start Page: |
e70093 |