moving all of this under the main international cooperation page 

New Tax Scheme!!!!!! Write-up below:

One of the greatest challenges presented by the current plight of worldwide fisheries is that of preventing overfishing. This prevention, if successful, will be the single greatest improvement over the current situation. How is this to be achieved? As long as there is a demand for fish, there will be motivation to fish and a risk of overfishing. The best possible solution to the problem of overfishing will therefore be the one which has the most probability of limiting catches to the maximum sustainable yield level.

The first step to limiting the catch to a level that can maintain the maximum sustainable yield is to define maximum sustainable yield, which can be found in our fisheries management section. The next step is to determine numerically what this level must be. Data collected through fish tracking, population surveys, and other methods and technology, some of which are in use today and some of which are new and are suggested in other parts of our report, will be used to estimate the total population and health of the oceanic ecosystems all over the global. The result will be location-specific information about the amount of fish that can be taken from any given area in the world to still maintain a sustainable fishery.

Next comes the tricky part. Once it is known at what level each fishery in the world can be fished in order to achieve the maximum sustainable yield, how do we make sure that fisheries are only fished up to that level and no more? There are two methods to control the taking of fish from a fishery: a quota, or a tax.

Many quotas have been implemented over the last few decades. These quotas vary in type and specific purpose, but they all aim to set a limit on how much fish can be removed from a given fishery in order to prevent overfishing. Quotas are discussed in detail in other sections of this report, and they are a useful tool that we intend to continue using in a limited capacity. Yet a quota-only system has failed to deliver the widespread halt to overfishing that must be achieved in order to save the fish. Therefore, a new, novel approach must be applied to the problem, which is where a global taxation scheme comes in.

As per the suggestions of Professor Wheaton, economics professor as MIT, the premise of the tax we propose is straightforward. Based on data collected on populations through the methods stated above, the ecological health of fish populations around the world and the relative risk of these populations being overfished and becoming depleted could be assessed by an international group of biologists. These biologists would split up the global international ocean into a number, perhaps between twenty and thirty, of distinct regions (Wheaton, personal communication, November 21, 2007). The biologists would analyze the data from each region and determine the overall danger to fish populations in each of the regions. These biologist would then apprise a group of economists of their findings. The economists would use this information to set a tax that is heavier for fish caught in regions containing more depleted stocks and lighter for fish caught in areas where the populations are less at risk of being overfished, i.e. the level of fishing that can happen and still remain below or equal to the maximum sustainable yield is higher.

This new policy would be taxing the profits of fishermen, who are taking the fish from the ocean but are currently not charged for the environmental and social costs that are associated with taking a common resource. If a fisherman catches very little fish, he generates very little revenue from selling the fish, but if he catches too many fish, the amount he will be paying in taxes will largely detract from his revenue. There is a point in between the two extremes at which the fishermen will be making the maximum profit after he has paid his taxes, and the committee determining the level of the taxes will make this maximum profit point a number that will ensure the fisheries will be fished at a sustainable rate.

A tax on fishermen will drive up the price of fish for consumers down the line, which will in turn decrease the quantity of fish demanded and thus the number of fish needed to meet this demand. A market-based control on fishing decreases the fisherman's incentive to overfish. The fisherman still has freedom to fish wherever he wants (within other constraints), but the tax will encourage him to avoid fishing in areas that are in more danger of being overfished.

There have been no prior attempts to levy an international tax to curb environmental damage, but we believe that since fish are a common resource that travel between national borders, and fish from one fishery are often sold to consumers all over the world, no other environmental crisis has been so in need of international cooperation. Implementation of this tax scheme will begin following years of strict command-and-control management strategies, such as quotas, which will bring the status of many fisheries from "overfished" to "sustainably fished."

Given the volatile nature of fisheries and the environment in general, the level of taxes will need to be adjusted from time to time. Currently, data on fish populations is generally collected and reported every two years, meaning that this team of biologists and economists would reset the tax at least every two years to account for changing conditions, and perhaps more often based on preliminary data, estimates, or sizable environmental changes (such as natural disasters). Alterations to the taxes at intervals would be necessary to keep them relevant and useful, since a permanent and static tax would simply encourage individuals to fish in areas that are lightly taxed, leading to overfishing and populations crashes. After a time of altering the taxes to fit changing conditions, the fluctuation of populations will reach a minimum at which only small tweaking of the tax is required, contingent on catastrophic events such as natural disasters and famines.

In the case of subsistence fishing and sportsfishing, we feel that quotas are still a better tool for maintaining a ceiling on the amount of fish caught for this purpose. Oftentimes subsistence fishermen have almost no choice about the location in which they fish, and they should not be penalized for this. This should also not be a reason for taking an unreasonable amount of fish. For sportsfisherman, permits can be issued to effect these quotas.

The tax would be administered internationally by the United Nations, provided for by the addition to the Law of the Sea Treaty that we propose. Only member countries would collect the tax, which eliminates the issue of taxation without representation. The revenue of the tax would then be redistributed internationally to these member countries to allow them to fund other aspects of our plan, like encouraging fishermen to switch to more environmentally sound methods of fishing. Countries who have signed the treaty are bound by it to fish sustainably in their own waters, and a tax is just another way for them to enforce this.

The results of the tax as we propose would significantly contribute to solving the overfishing problem. The tax is not only a revenue-generating device, but we can also consider the tax to be covering the ecological and societal cost of taking each fish out of the ocean.

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STATUS: we're not using a consumer tax. where's our new tax plan?

When a tax is placed on fish, a group of people will be paying money to cover the social environmental costs of fishing that is not included on the market price for fish. Levying a tax on fish can serve additional purposes. Taxing fishermen can limit the amount they can catch before it becomes economically unprofitable, essentially serving the same purpose as a quota. Taxing will also help decrease the demand for fish, which in turn will reduce the amount of fish that needs to be caught.

Establishing a fish tax will put the cost of depleting fisheries on the consumer. Similar to gasoline tax and cigarette taxes, an excise tax on fish will increase the cost of any fish products sold on the market. Currently there is a very high demand for fish, and if we are to keep a sustainable global fish population, we cannot catch the number of fish needed to meet this demand. An increase in fish prices will not only discourage consumers from buying more fish, thus lowering the demand, but it will make them aware of the crisis in our oceans today. Though this will make it so the lower class will have difficulty affording fish, in America and other developed countries, there are other protein options available, and fish prices will have little negative effect on public health. This taxing scheme would not be applicable in developing nations.

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6 Comments

  1. Our treaty can't guarantee that taxes will be levied in individual countries... what about levying laxes some other way? i am going to go look into this, but i think that the under the law of the sea that the UN has authority over the seabed outside all EEZs. other countries can have access, but they're supposed to share. what if we levy large taxes to mine the seabed? i'll try to think of some other stuff too.

    1. TAXES
      a. Purpose/Goal: to control demand, not necessarily to make profit
       i. Measure of "elasticity" of markets
       ii. Elastic markets: the effect will be to reduce demand
       iii. Inelastic markets: the effect will be make profit
       iv. Most Effective in countries with elastic markets
      b. Implement on the national level
       i. Introduce into countries that can afford to implement this plan
       ii. GDP/GNP basis?
      c. Two Types of Taxes
       i. Flat tax on consumer
       ii. Adjustable tax (according to the devastation of a given species) at a different level (placed on fisheries? not consumer)
        1. Tax adjusts every two years (concurrent with NOAA reports on the State of the Fisheries) on a species basis
      d. ESTIMATES
       i. 100% - (Total sustainable catch / Current Global catch * 100%)
        1. This defines our goal of reducing current catch
        2. From FAO dataset, world production of fish is approx 92 million metric tons
        3. Sustainable catch??
        4. This formula gives us basic parameters

      1. Given the low level of sustainable catch, this looks like we'll be almost doubling the price of fish. I like the way the formula is set up. We just need to figure out how to convince people this is good for them.

        I have a book from Rotch about taxes and incentive policies as they apply to pollution and CO2. I haven't had a chance to read more than the first couple pages, but I'll bring it to tomorrow's mega-meeting.

        1. i completely agree. and i think mega-meeting is an appropriate term.

  2. these biologist --> biologists in paragraph5

    looks awesome, by the by. ~Emily

    Oh, and are there any provisions for endangered species???? Prohibitively high taxes? Moratorium per species? Does this already exist?

    1. yeah, that stuff already exists. that's why japan can't import/export whale (or other endangered species), because it's illegal