Quota Consolidation in Norwegian Coastal Fisheries

Balancing the trade-off between economic efficiency and social objectives has been a challenge for natural resource managers under rights-based management. While the actual prioritization should be guided by social preferences, the mechanisms and consequences of the quota transfer system need to be well understood. We investigate the effects of the quota transfer scheme implemented in the Norwegian coastal cod fishery in 2004. This is a small-scale fishery that has traditionally been important for employment in the northern part of Norway. Using vessel-level quota registry data, we estimate the effect of quota trading on vessel exit using a difference-in-differences approach that exploits variation in implementation timing between regulatory groups. In addition, we describe the outcome of quota consolidation with descriptive statistics. Our results confirm that the quota transfer scheme accelerates the exit of vessels from the fishery by at least 5