The Resource Rent in Norwegian Aquaculture from 1984 to 2020 – Is the Rent Ripe for Taxation?

26 Pages Posted: 23 Mar 2022

See all articles by Mads Greaker

Mads Greaker

Oslo and Akershus University College - Oslo Business School

Lars Lindholt

Statistics Norway - Research Department

Date Written: January 26, 2022

Abstract

This study uses the National Accounts and the definitions of the UN System of Environmental-Economic Accounting to calculate the resource rents in Norwegian aquaculture in the period 1984-2020. If we know the remuneration of all input factors such as capital, labour, and inter-mediates except the remuneration of the ecosystem services used in aquaculture, the resource rent will appear as the difference between the value of output and the remuneration of all other input factors. This resource rent is a combination of a Ricardian rent and regulation rent. To as-sess the size of the rent, we perform various sensitivity analysis as introducing higher rates of return, applying alternative wage costs and by treating the stock of growing fish as real capital. A robust conclusion is that there has been a significant resource rent in aquaculture since 2000 and that it has risen markedly since 2012. In the period 2016-2020 it has averaged 18-20 billion NOK per year. Hence, both from an allocative justice and economic efficiency perspective, the Norwegian aquaculture industry seems ripe for resource rent taxation.

Keywords: Resource rent; Aquaculture; National Accounts; System of Environmental-Economic Accounting

JEL Classification: Q22, L11, E22

Suggested Citation

Greaker, Mads and Lindholt, Lars, The Resource Rent in Norwegian Aquaculture from 1984 to 2020 – Is the Rent Ripe for Taxation? (January 26, 2022). Available at SSRN: https://ssrn.com/abstract=4018251 or http://dx.doi.org/10.2139/ssrn.4018251

Mads Greaker (Contact Author)

Oslo and Akershus University College - Oslo Business School ( email )

Pilestredet 35
Oslo, 0167
Norway

Lars Lindholt

Statistics Norway - Research Department ( email )

Kongens Gt. 6
PO Box 8131 Dep
N-0033 Oslo
Norway

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