Conference Agenda

The EU aims for climate neutrality by 2050, while Finland targets carbon neutrality by 2030. Biochar, a cost-effective negative emission technology, has significant potential to mitigate climate change by sequestering carbon in soil while improving soil properties and reducing nutrient runoff. Despite its climate benefits, economic studies on biochar use in agriculture are scarce. This thesis analyzes the economic viability of biochar for private farmers and social welfare through a cost-benefit analysis using analytical models and simulations in Mathematica. A case study on Finnish barley farming with a 5 t/ha biochar application finds that private profit turns positive after 12 years but remains lower than without biochar, while social welfare surpass those without biochar in 5–6 years. To bridge this gap, a fertilizer tax and investment subsidy are examined. With increasing EU focus on carbon farming, biochar presents a promising avenue for future research and policy development.

A rapid increase in global population and wealth has led to a growing demand for animal-based foods, posing significant environmental and health challenges. This study examines the relationship between GDP per capita and the supply of animal-based foods and pro- teins, using country-level panel data and a polynomial model to explore the Environmental Kuznets Curve hypothesis. Results indicate that GDP per capita significantly influences both the quantity and share of animal-based foods and proteins, though the relationship is complex and varies by income level. An N-shaped relationship is observed for the share of animal proteins, with turning points at $36,000 and $57,000, while animal food supply increases across all GDP levels but at a slower rate, around $46,000–$49,000. Animal foods and proteins are inelastic with respect to GDP, with income elasticity turning negative for the share of animal proteins between $36,000 and $56,000. Moreover, regional differences are notable: while we see an inverted U-shaped relationship in Europe and a subtle N-shaped pattern in Asia, the results suggest a linear trend in Africa and Latin America. Overall, our findings imply that economic growth alone will not solve the issue of increased animal consumption and its associated negative health and environmental impacts.

Assigning property rights to fish stocks has become the preferred way for regulators to increase cost-effectiveness of harvest across a growing number of fisheries. In many catch share programs, transfers of catch privileges in some form take place, resulting in the formation of prices. Catch share prices can convey important information to fisheries managers and participating fishers. Although all major fisheries in Norway are managed with a catch share system, information about prices is not publicly available, and little research has been conducted on catch share valuation in Norway and elsewhere. For our study, we use a hedonic framework to estimate the marginal value of individual vessel quota units (IVQ) in the northern coastal fishery for cod, the most economically important fishery in Norway. Using Norwegian tax data on registered fishers and fishing firms, together with data on vessel ownership, we construct a comprehensive transaction database spanning the years 2009 to 2017. We use this novel data set to estimate hedonic pricing models at the vessel level, allowing us to estimate implicit prices of quota units. We use our hedonic pricing models to investigate how regulatory limits on vessel-level consolidation of quota units affect their marginal value. Further, we assess how geographic restrictions on trade affect the valuation of the quota and find, in line with economic theory, that fewer restrictions increases supply and reduces the marginal value of cod quota. Our study thus highlights the importance of considering all aspects of the regulatory framework.

Regional policy instruments that transfer funds between jurisdictions are popular tools for mitigating spatial economic disparities. Given the regional aspect of fishing activity, these policy tools often benefit fisheries firms. In this paper, I study the effect of the regional policy area in Norway---a geographical area that is, among others, exempt from the general ban on public investment support in the European Economic Area. Fishing firms receive substantial amounts of subsidies for, among others, buying vessels and fishing quotas as part of regional development policies. Insight into the effect of the subsidies is consequently important. The geographical scope of the regional policy area was revised in 2007 and 2014. In both occasions, many fishing firms lost access to public funding as a consequence of the policy change. I exploit these changes in a difference-in-difference setup to study study how regional aid affects fisheries investment. In addition, I construct a comprehensive and novel data set on public subsidies geared toward fisheries investments in Norway. I use this data to measure the effect of public investment support on investments for all fishing firms in Norway in the period 2009--2017. My empirical results indicate a strong effect of public funding on investment behaviour among fishing firms. Additionally, I find that a large share of the public subsidies to the fishing industry are used for fishing quotas. My results shed light on how public investment subsidies can influence the distribution of property rights ownership in resource industries. This has relevance for the the ongoing debate in fisheries management policy around the trade-offs between social and economic goals.

The Norwegian purse seine fishery, targeting multiple species, operates under a rights-based management system and has developed into a highly profitable industry. Using a vessel-year panel dataset from the Norwegian Directorate of Fisheries (2001-2022, 163 vessels), this study examines whether this development aligns with resource optimization by analysing input-oriented short-run (transient) and long-run (persistent) technical inefficiency, input misallocation, and the associated costs. Our findings indicate a high level of resource optimization, reflected by low transient and persistent technical inefficiency in the fleet. However, the persistent technical inefficiency varies among vessel subgroups, with the blue whiting vessel group exhibiting the highest inefficiency and the pelagic trawler group the lowest. We also observe that an increase in a vessel’s annual quota holding capacity slightly reduces transient technical inefficiency. Additionally, input misallocation costs are substantial, primarily driven by the underutilization of labour relative to material inputs. These findings suggest strengthening policies that help reduce systemic input waste in the blue whiting vessel group, promoting targeted initiatives to address short-term excess input use, and revising crew remuneration systems to incentivize more efficient labour employment.

Monitoring and punishment are commonly used to deter non-compliance, but their effectiveness is often limited in developing contexts with weak enforcement. We explore an alternative strategy: replacing a non-compliant input with a compliant one in an open-access fishery. Specifically, we assess whether aquaculture bait (complaint) can serve as a viable alternative to wild-caught (non-compliant) bait in the Nile perch longline fishery of Lake Victoria, Africa. Using a randomized controlled trial with 86 boats, we compare the performance of aquaculture bait to that of its non-compliant alternative. Following the intervention, we also assess willingness to pay (WTP) for aquaculture bait among 100 users. Our results show that catch outcomes from aquaculture bait are comparable to those of wild-caught bait, with the potential for improved performance under effective management practices. Furthermore, users expressed a willingness to adopt aquaculture bait, though a price reduction of over 40% would be necessary to drive widespread uptake. These findings suggest that aquaculture bait has the potential to be a key component of regulatory efforts aimed at enhancing the sustainability of the Nile perch fishery in Lake Victoria.