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Economic Effect of Fishing Taxation on the Using of the Fisheries Resources

This paper aims at examining the economic effect of fishing taxation for the exploitations of fisheries resources using simple economic model. Through this paper, I will show that imposing tax about fishing is more effective than they could be otherwise. For the sustainable use of fisheries resources, imposing fishing taxation is more efficient than total allowable catch(TAC) or individual transferable quota(ITQ) being currently implemented. Especially, TAC results in discarding or high-grading problem which is more profitable as each fishing agent's point of view. Consequently it is not only distorting economic efficiency but also bringing about resource wasting. Therefore, Fishing taxation is to be superior to any other economic means or instruments only if it suggests specific methods in implementing.