Economists argue that carbon taxation (and more generally carbon pricing) is the single most powerful way to combat climate change. Since this is so controversial, we need to explain it better, and to be precise, the efficiency gains are largest when the costs of abatement are strongly heterogeneous. This is often—but not always—the case. When it is not, standards can fill much the same role.

Chile’s extended allocation of marine user rights aims to reduce overextraction of marine resources. New user rights promote small-scale aquaculture both to increase coastal incomes and to encourage fishers to transition to other livelihoods. Some activities prove profitable only in particular biogeographic settings, such as open ocean or estuaries. We examine a coastal region of Chile to investigate the response of households to these marine-based activities and rights.

Aquaculture has become a key activity for coastal development. Despite of positive impacts on employment, it is questioned by its potential negative effects. This paper analyses the motivations of a rural community in Chile to reject the installation of an aquaculture firm. The results reveal that potential environmental impacts, changes in the way of life and organization of work, tourism reduction, and the demand of specialized labor explain this rejection.

Abstract