The Norwegian salmon tax

: an empirical study of the Norwegian salmon industry

Abstract

Natural resources may play a crucial role in driving economic growth within a nation, capitalizing on inherent advantages as inputs in production processes. Norway's aquaculture sector has emerged as a notably lucrative industry in recent years. Rooted in the country's historical tradition of communal resource ownership, a special tax on sea usage was introduced for the Aquaculture sector in 2023. This dissertation endeavors to delineate the primary drivers underpinning the industry's profitability, suggesting two principal factors: 1) technological advancements and 2) historical government interventions. Drawing upon empirical data from both firm- and industry-level, we aim to elucidate the impact of these factors. Additionally, we propose a hypothetical exercise of the forthcoming tax legislation to underscore its potential ramifications. Our findings underscore the significant influence of historical government interventions in shaping the industry's landscape. These interventions have led to a scarcity of sea resources, consequently driving up profitability. While technological advancements undoubtedly bolster industry viability, the dominance of a few major firms can be attributed to historical governmental policies demanding licenses for operation. Furthermore, our hypothetical taxation exercise highlights the complexity inherent in determining an appropriate tax rate, particularly given historical investment patterns among industry players.

Date of Award	10 May 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Isabel Correia (Supervisor)