Profit and Resource Rent in Fisheries

The difference between the concepts of profit and rent are discussed theoretically and by using aggregated data from the Icelandic and Norwegian fish harvesting industries. The former is a basic indicator for gauging the business performance of firms and industries, and the latter is important for the evaluation of the economic welfare contribution of resources and industries. The importance of distinguishing between profit and rent is greater for fisheries under strict management control, such as those with quotas and licenses, than those with more open access. It was found that profit is lower than rent in both countries. Policy implications are discussed.