Buyback subsidies, the time consistency problem, and the ITQ alternative.

摘要

This paper deals with the time consistency problem associated with fishing vessel buyback schemes, arising from the fact that the schemes may be anticipated by vessel owners. After reviewing and elaborating upon the key results of our recently published article (Clark, Munro and Sumaila. Journal of Environmental Economics and Management (2005) 50(1), 47-58) on buybacks and limited-entry programmes, we discuss the consequences of combining buybacks with ITQ schemes, or the equivalent, instead of limited-entry programmes. We conclude that substituting ITQ schemes for limited-entry programmes cannot be relied upon to eliminate fully the time consistency problem. We suggest that what may be required is a management programme that combines rights-based schemes with taxes..