Examination of the Peruvian Anchovy Individual Vessel Quota (IVQ) System

Abstract

work is licensed under a Creative Commons IGO 3.0 AttributionNonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ legalcode) and may be reproduced with attribution to the IDB and for any non-commercial purpose, as provided below. No derivative work is allowed.Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.Following a peer review process, and with previous written consent by the Inter-American Development Bank (IDB), a revised version of this work may also be reproduced in any academic journal, including those indexed by the American Economic Association's EconLit, provided that the IDB is credited and that the author(s) receive no income from the publication. Therefore, the restriction to receive income from such publication shall only extend to the publication's author(s). With regard to such restriction, in case of any inconsistency between the Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives license and these statements, the latter shall prevail.Note that link provided above includes additional terms and conditions of the license. Tables Table 1A: ii AbstractThe implementation of rights-based management programs is increasing worldwide yet there are few ex post evaluations, especially in developing country contexts. In this paper we examine changes following the implementation of a catch share system in the Peruvian anchovy fishery, which is the world's largest commercial fishery by volume. After implementation of the Individual Vessel Quota (IVQ) management system, we observe a shift toward higher-value products and a 97% increase in per-unit revenue from 2008 to 2013. We also find that landings are more spread out over the fishing season, with an increase in the number of fishing days.Additionally, fleet consolidation occurs over time with a shift toward larger vessels in the steel fleet. Finally, using cost estimates from a large fishing firm on the cost of steel vessel operation, we estimate variable harvesting profit increased from 34-41% of the ex-vessel price pre-IVQ to 63-65% post. JEL codes: Q22

Desafiando la tradición de país harinero: Una mirada económica de la actividad pesquera de Piura, Perú

“…También es interesante notar que la dinámica de CHD de Piura se ha desarrollado en años recientes en los que, coincidentemente, la flota industrial nacional activa de anchoveta para CHI se ha reducido hasta en un 40% luego de la implementación del régimen de cuotas individuales (Kroetz et al 2019). A pesar de esto, dicha flota no ha logrado reorientarse hacia pesquerías como la pota.…”

Information and Spillovers from Targeting Policy in Peru's Anchoveta Fishery

“…7 IVQs preclude entry of new vessels into the fishery. 8 Property rights-based instruments like IVQs increase fisher profits, increase biomass (size of stock in tons), and reduce the probability of fisheries "collapse" (Costello, Gaines and Lynham, 2008;Tveteras, Paredes and Peña-Torres, 2011;Costello et al, 2016;Natividad, 2016;Isaksen and Richter, 2019;Kroetz et al, 2019). But rights-based instruments defined in terms of tons, as in Peru and in the vast majority of fisheries with rights-based instruments, do not address the differential externality from catching juvenile fish (Smith, 2012;Quaas et al, 2013).…”

Public Environmental Expenditure Review in Peru 2008-2013

“…This policy encouraged sector consolidation resulting in a reduction of fleet. Variable operating profit as a share of landing prices also increased from 41 percent to 65 percent (Kroetz et al, 2016). However, this quota system generated incentives to underreport catches, thereby placing its effectiveness at risk.…”