Theoretical Analysis And Application On The Industry Attributes Of Large Yellow Croaker Cage Culture

This article combines the new institutional economics with advanced theories ofmodern economics such as environmental economics, game theory, public choicetheory etc, creatively composes a “Cage culture attribute—Institution theory—Conduct characteristics—economic Performance” theoretical analysis framework(CICP theoretical model) according to the SCP paradigm of industrial organization,and applies the CICP model to the positive study of lager yellow croaker cage cultureindustry.Firstly, the analysis of economic theory is built on certain assumptions andconcepts. The article reviews the concept of marine cage culture and environmentalpollution mechanism of cage culture, and then extracts the basic facts without beingproved during the process of aquaculture to constitute the basic assumptions. Theseconcepts and basic assumptions lay the foundation for the article and provide thenecessary background knowledge. Secondly, according to the internal logic chain ofCICP theoretical model, the article carries out the research. It views the currentsituation of large yellow croaker cage culture industry based on the theory of publicgoods to point out that aquaculture water is a typical public resource with competitiveand exclusive consumption, and then reaches a conclusion about the attribute of cageculture industry that usually face the “tragedy of the commons” such asoverexploitation, decline etc. Then by analyzing the implications of institution of cageculture attribute, some issues such as negative externality, uncertainty, unclearproperty right and prisoner’s dilemma are importantly investigated, it is indicated that“tragedy of the commons” is a objective reality, but not inevitable, clues are providedfor pursuing effective institutional arrangement. According to the logic of CICPmodel, main institution arrangements of cage culture need to be compared. The articlecompared two systems: government management system (including tax system,subsidies system, deposit system and the system for use of sea areas) and fishermen’sself-governing system (tradable emission permits (TEP), fishermen’s cooperative system) in the fields of economic units behavior, cost of exchange, comparativeadvantage and obstacles of implementing to estimate their economic performance. Infinal, on the basis of theoretical research, industrial institution of cage culture of largeyellow croaker in China was study empirically by mainly investigating Fuxing largeyellow croaker cooperative. The cooperative has witnessed remarkable effect inprotecting water environment, reducing transaction cost and raising fishermen’sincome, but there are also some problems such as liquidity difficulties, uncertainpreferential treatment policies and lack of professional knowledge.In the paper, based on the theoretical and positive analysis, the countermeasuresshould be combined the government regulation with market oriented method. Moreconcretely, the institutional innovation should include four aspects: economic level,administrative level, legal level and public supervision. In particular, the institutionalinnovation from economic aspect, as the compensation and improvement of thecurrent pollution charge systems, includes the systems of risk mortgage and thetraining of intermediary organizations. The administrative aspect is effective torestrict the rent-seeking behaviors of government, including the development ofMacro-control system and leadership performance appraisal system. The legal aspectneeds to build the rules of fair competition and strengthen law enforcement, in orderto protect the rights and obligations of each correlative individual regarding theprotection of culture environment. Public supervision, as the compensation of theformal institutions, is beneficial to mobilize the power of public completely andarouse people’s concern for a healthy environment.