grad fisheries basics

grad fisheries basics - Economics of Fisheries 2008 by...

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Click to edit Master subtitle style Economics of Fisheries © 2008 by Peter Berck
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Economic Issues in Fisheries Present value maximizing fishing rules The open access outcome Regulation by inefficiency n Gear restrictions n Time restrictions Regulation by quotas
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The Industry Fish in Sea Catching Fish Processing Fresh Consumer
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So What Is the Problem? Nothing strange about the consumer. Nothing strange about processing. Allocation between fresh and processed  might be funny. Nothing strange about physical fishing  process. Something very strange about fish in 
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So What Should Fish Sell for? Price of fresh fish equals sum of: n Marginal cost of transport and selling. n Marginal cost of catching the fish. n Value of the fish in the sea. But fish in the sea aren’t sold! n Lack of ownership is the principal problem.
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A Typical Fishery History Starts with few fisherman Lots of fish Excellent catch  Runs down the stock Fishers leave Catch collapses
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North Sea Herring 0 500 1000 1500 2000 2500 3000 0 200000 400000 600000 800000 Harvest metric tons Stock (1000) metric tons
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North Sea Herring
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Open Access The paperclip game. n 10 people. n 7 paper clips. n 10 cents if picked up in first minute. n 25 cents if picked up in second minute. What happens? If you have to pick them up with your mouth. Suppose there were transferable certificates 
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A Formal Model Open access Present value maximizing
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The Schaefer Model x is biomass of fish in the sea h is the catch p is the price of fish E is the number of boats-years c is the cost of a boat-year
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 Fish Per Boat When there are more fish in the sea it is  easier to find fish. When there are more fish and one finds  them, one catches more fish per unit of  time. More fishing boats catch more fish.
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Catch h = k E x n h is harvest n E is trips n x is biomass n k is a constant Empirical formula that relates catch to  trips and biomass
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Biology Stock next period = n Stock this period   n Plus net growth (f(x) ) w Growth w Recruitment w Less natural mortality n Less catch
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Stock … f(x) growth x  stock MSY f(x)=gx(1-x/K)
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Profits The profits from a boat are n Price times Catch – Cost n p k x – c When profits are positive, boats enter When negative, they leave So, in equilibrium profits are zero
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2 Equation Model dE/dt = pkx –c dx/dt = f(x) - kEx
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This note was uploaded on 08/01/2008 for the course ARE 262 taught by Professor Berck during the Spring '08 term at Berkeley.

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grad fisheries basics - Economics of Fisheries 2008 by...

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