Deemed Values: Implementing Tiered Price Caps in ITQ Fisheries.
Friday, April 21, 2017 Noon – 1:00 p.m., RH 204
Presentation by:
Dr. Ralph Townsend
Director, UAA Institute of Social and Economic Research
In 2001, New Zealand modified its quota management system to function as a hybrid ITQ/tax system. Catches in excess of annual catch entitlements incur payments, called “deemed values”. Deemed values are a low transactions cost system for catch balancing. New Zealand’s “differential deemed values” also present an innovative way to approximate an upward sloping marginal cost of overfishing function. Deemed values can be generalized as a system of “tiered reserves and prices” that ideas can be applied to other cap-and-trade rights systems.