Fisheries Management under Uncertainty using a Hybrid Instrument

Abstract

This article considers the use of a hybrid instrument to regulate .sheries, comparing this instrument with quantity control and linear taxation in regards to economic yields and the risk of resource deple- tion. Hybrid instruments have shown to be central in studies with static models but have hardly ever been explored in the context of dy- namic .sheries. A numerical example concerned with a single-species demersal .shery where the stock estimate is uncertain indicates that a combination of price and quantity control in the form of a strictly convex tax on landings is clearly superior to quantity control. When cost uncertainty is involved, it can also prove more e¢ cient than the price instrument.