Presentation12.pdf - ECONOMIC ANALYSIS OF FISHERIES THE MARINE ENVIRONMENT Environmental Economics Lecture 12 \u2022 The oceans are in serious trouble \u2022


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1/20/2020 1 ECONOMIC ANALYSIS OF FISHERIES & THE MARINE ENVIRONMENT Environmental Economics Lecture 12 The oceans are in serious trouble ! The majority of fisheries are declining & face complete collapse. In areas where unsustainable rates of fishing led to the collapse of large fisheries, such as the cod fishery off the coast of New England & Canada in the 1990s, tens of thousands of jobs were lost & entire local communities were devastated. Even in areas where fisheries have yet to collapse, the toll of overfishing has created serious economic hardship .
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1/20/2020 2 As all oceans are “ open access resources, with the surge in demand for seafood, fishermen harvest as much fish as they can resulting in unsustainable rates of fishing. Demand for seafood has skyrocketed, & technology for catching fish has improved dramatically. Large commercial fleets employ sophisticated sonar systems costing hundreds of thousands of dollars & nets hundreds of meters long. INDIVIDUAL FISHING QUOTAS (IFQS) Theoretically, the solution to the problem of overfishing is straightforward: limit the quantity of fish that can be caught . This necessitates creating property rights to fishery resources & assigning them to different parties (or finding some other way to distribute them, such as an auction), essentially creating a cap & trade system over these natural resources. In countries such as New Zealand, Norway, Iceland, Canada , & the U.S. , systems are in place that create property rights for fisheries & limit the total catch .
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1/20/2020 3 These are referred to as Individual Fishing Quota (IFQ) or Individual Tradable Quota (ITQ) systems (also as “ catch shares ”). In almost all regions where they were implemented they have been successful at helping to create sustainable fisheries. In all of these programs, fisherman can freely buy & sell permits among themselves. Cons: setting up these programs is complex & they are not simple to manage. IFQs are only possible in areas where the government or some other legal entity has clear property rights over the ocean resources with which they can exercise authority. The Law of the Sea Convention grants nations the rights to ocean resources within 200 miles of their coastlines. These regions are where all current IFQ systems exist. Within these boundaries nations are entitled to utilize their ocean resources as they see fit, which includes creating property rights systems over resources. The scientific data requirements of IFQ systems are very strong; to determine the sustainable levels of fishing, detailed information about historic fish stocks must be available. This is complicated by the fact that fish species intermingle ; while fishing for one species, other species are often caught as well.
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1/20/2020 4 This typically results in conservative estimates for the “ maximum allowable catch .” Another reason in support of more conservative estimates is that faced with fishing quotas, fishermen are apt to “ high-grade ”: Only bringing to shore
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  • Fall '19
  • Overfishing, Ifq

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