Fleet Restructuring, Rent Generation, and the Design of Individual Fishing Quota Programs: Empirical Evidence from the Pacific Coast Groundfish Fishery

Abstract

This article characterizes anticipated changes in fleet structure, vessel harvesting activity, and economic performance in the Pacific Coast groundfish fishery under an individual fishing quota management program. Results suggest that the current fleet of 117 vessels will be reduced by roughly 50%-66% to 40--60 vessels, resulting in annual cost savings of $18-$22 million (based on 2004 price and cost estimates). However, cost savings could be significantly less if restrictions on quota trading across vessels are incorporated into the program design. Alternative modes of collecting fees to fund program administration and their impact on fleet size and total fishery value are also studied. We conclude that a program of individual fishing quotas, if carefully designed, can be an attractive alternative for management of the Pacific Coast groundfish fishery. KeywordsIndividual fishing quotas, scale and technical efficiency, fleet restructuring

California's Commercial Fisheries: 1981-2012

“…Catch share programs are well known for curtailing the race for fi sh and enhancing the economic productivity of quota holders (Mamula and Collier, 2015); catch shares also encourage fl eet consolidation which, in turn, leads to employment losses (Lian et al, 2009). An important consideration is fi nding an acceptable balance between effi ciency gains and employment losses.…”