Profit and Price Effects of Multi-species Individual Transferable Quotas

Abstract

Regulators in many countries have adopted individual transferable quotas as a means of dealing with the open access problem inherent in fisheries. Using individual vessel data prior to and after the introduction of ITQs in Canada's multi‐species Scotia‐Fundy mobile gear fishery, the paper uses an index number profit decomposition to compare vessel performance over time and across individual vessels. The approach allows us to undertake both an ex post evaluation of short‐term impacts of ITQs and an ex ante evaluation of longer term impacts. With respect to short‐term impacts, the results suggest that larger vessels have benefited the most from the introduction of ITQs, but that all vessels have enjoyed increases in the prices received for those fish species that are included in the quota program. With respect to longer‐term impacts, the transferability provisions of the ITQ program have encouraged exit and more efficient operations to prevail.

Productivity development in Icelandic, Norwegian and Swedish fisheries

“…Since the different species to a large extent are sold in integrated international markets (primarily the European market), this suggests that Iceland has been able to increase the quality of its product more than the other two countries. 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 Cod price index Recent studies report that an initial effect of the introduction of ITQs was increased revenues thanks to increased quality (Fox el al., 2003;Dupont et al, 2005;Homans and Wilen, 2005).…”

“…But what is the empirical experience in terms of productivity? Fox et al (2003) and Dupont et al (2005) evaluate the introduction of ITQs using data from before and after the introduction and do find substantial firm-level productivity improvements despite fairly short data periods of 5-6 years, although stock changes are not adjusted for.…”

Incentive-based approaches to sustainable fisheries

“…At the individual level, quantified fishing rights encourage fishers to harvest their fixed catch at lowest cost, to increase the value of landings through better handling and care of fish (Campbell et al 2000a;Rice 2003;Dupont et al 2005), or to change product form (from frozen to fresh), as occurred in the British Columbia (BC) halibut (Hippoglossus stenolepsis) fishery (Casey et al 1995;Herrmann 1996). Such efforts, and the transferability that allows more profitable fishers to harvest a larger share of the total catch, improve efficiency and increase productivity (Fox et al 2003a).…”

Overlap of Home Ranges of Resident and Introduced Southern Rock Lobster after Translocation

“…A fishery management strategy that permits both of these possibilities is stock enhancement through sea ranching, and in this species, it had potential to increase production and reduce costs (Gardner and Van Putten, 2008b). As translocation increases the productivity of recruits, the economic yield from the fishery is increased, either through lower costs associated with higher catch rates or through larger total allowable catch (TACs) (Dupont et al, 2005). Within the adaptive management framework, if the risks are monitored and addressed, then translocation is a real solution to conserving ecosystems (Rout et al, 2009;Sutherland et al, 2009) and maintaining sustainable fisheries (Stottrup and Sparrevohn, 2007).…”