Abstract
The paper aims at identifying the effects exerted by a tax levy on an overexploited and previously unregulated fishery. The analysis is carried out by means of a dynamic model, which includes the fish stock, the harvesting effort and the price for fish as state-variables; attention is focused on the roles played by both the demand elasticity and the open access externality. According to the analysis, the standard results provided by the received microeconomic theory are remarkably modified. In the long run a higher amount is sold at a lower price regardless of demand elasticity.