Claire W. Armstrong

Optimal Allocation of TAC and the Implications of Implementing an ITQ Management System for the North-East Arctic Cod

First, we study the allocation rule applied to split the Norwegian total allowable catch for cod between coastal and trawler vessels. Second, we explore the bioeconomic implications of an ITQ management system for this fishery. A model combining a cannibalistic biomodel with cooperative game theory is developed. Key results from the study are (1) the current allocation rule acts in opposite fashion to what may be considered bioeconomically optimal; and (2) an ITQ system for this fishery is likely to result in economic losses, as the biological advantages of harvesting with the two vessels types may be lost. (JEL Q22, Q28)

Sharing a Fish Resource – Bioeconomic Analysis of An Applied Allocation Rule

Political and economic factors usually determine the harvest sharesallotted to heterogeneous fisher groups harvesting upon the same fishstock. Given that the fishers harvest upon different segments of a fishstock with, for instance, cannibalistic tendencies, the shares allottedmay have considerable effect upon the well-being of the stock and theeconomics of the fishery. This paper analyses an existing allocationrule defining harvest shares allotted to two vessel groups (trawlers andcoastal vessels) in the Norwegian cod fishery. We apply a model with twointeracting age groups within a single fish stock, where the interactionhas both biological and economic implications. Requiring a first bestapproach to an optimal stock size results in no harvest in the firstyears studied. In order to ensure harvest amounts close to the historicharvest, we design a second best model giving optimal biological sharesin the build-up phase of the stock, and bioeconomic optimal shares atthe optimum fish stock level. The second best model recommends that foran increasing stock size the trawlers should obtain decreasing shares.We find that the actual allocation rule functions in a manner oppositeto the second best model, since this rule allocates an increasing shareto the trawlers for an increasing stock size.

Cannibalism and the Optimal Sharing of the North-East Atlantic Cod Stock: a Bioeconomic Model

This paper shows how intra-stock relations such as cannibalism and growth enhancement, determine the economically optimal sharing of a fish resource between heterogeneous harvesting agents. The sharing of resources between different vessel groups is often left for political decision making. Nonetheless, such decisions may have both biological and economic consequences. This becomes quite clear when different harvesting groups exploit different sections (age groups) of a stock that has intra-stock interactions in the form of cannibalism. A two-agent bioeconomic model with cannibalism is developed and used to determine (i) optimal annual harvest sizes (TACs) for cod, and (ii) the optimal proportion of the TAC that should be harvested by the different vessel groups in the fishery. Applying biological and economic data in a numerical procedure, and comparing the results obtained to previous studies, it is shown that intra-stock interactions such as the presence of cannibalism has a significant impact on who should take what proportion of the TAC, and hence, the standing stock size and discounted economic rent achievable. In contrast to other studies, we find that the optimal harvest requires that both trawlers and coastal vessels should harvest the fish resource. In addition, the results indicate that, from a bioeconomic perspective, the existing trawler fleet’s harvest share in the cod fishery is too high.

Estimating Linkages between Redfish and Cold Water Coral on the Norwegian Coast

Abstract The importance of essential fish habitat in supporting commercial fisheries has received increasing attention in recent years. Bottom trawling is known to cause particularly destructive damage to habitat that is effectively non-renewable, such as cold water corals. This paper applies the production function approach to estimate the link between cold water corals and redfish in Norway. Both the carrying capacity and growth rate of redfish are found to be functions of cold water coral habitat and thus cold water corals can be considered an essential fish habitat. The paper also estimates a facultative relationship between cold water coral and redfish stocks. The essential habitat model shows the best fit to the data. Comparative statics of an essential habitat indicate an approximate annual loss in harvest of between 11 and 29% within the bounds of coral decline estimated by scientists. In terms of policy, our results indicate that essential fish habitat protection should be considered when managing commercially important species. JEL Classification Code: Q22

Distributional and Efficiency Effects of Marine Protected Areas: A Study of the Northeast Atlantic Cod Fishery

We study the distributional and efficiency effects of marine protected areas using the Northeast Atlantic cod stock as an example. A model with two players targeting different age groups of cod is developed to examine how protected areas may affect payoffs to the players under cooperation and non-cooperation. We find that depending on the ex ante and ex post management regime, win-win, lose-lose, or win-lose outcomes may emerge with the implementation of marine protected areas. When the ex post management is cooperation, both players gain, while ex post non-cooperative behavior results in gains only to one of the players. (JEL Q22, Q28)

The Optimal Management of a Transboundary Fish Resource: The Arcto-Norwegian Cod Stock

This is an applied analysis of two parties’ cooperative harvesting of a migratory renewable natural resource. The Arcto-Norwegian cod (Gadus morhua) is a resource shared by Norway and the USSR. Spawning takes place mainly in Lofoten, on the Norwegian coast, in March-April. The eggs are pelagic, and the eggs and larvae drift with the coastal currents to the north-eastern part of the Norwegian Sea and the Barents Sea. At the age of 3–7 years the cod migrate in to the coast to prey upon capelin (Mallotus villosus). The ArctoNorwegian cod reaches maturity after 5–8 years.

What does stakeholder involvement mean for fisheries management

The Common Fisheries Policy (CFP) sets the guidelines for the management of European fisheries. The CFP is revised every 10 years, and the last two revisions have laid the groundwork for extending stakeholder participation in European Union fisheries management. The fishery industry and nongovernmental organization (NGOs) especially are recommended to be given greater influence. In this paper we report results from an international survey on fisheries stakeholders’ preferences for the three pillars of sustainable fisheries activities as defined in the CFP: ecological, economic, and social. Results of the survey show that industry member preferences were significantly different from the preferences of authorities, scientists, and NGOs. The preferences of the three latter groups did not vary significantly across stakeholder group. This raises the question of what consequences the planned stakeholder involvement in the CFP may have, given the preferences revealed in our survey.

Challenges and Successes in the Management of a Shared Fish Stock – The Case of the Russian–Norwegian Barents Sea Cod Fishery

Abstract This article discusses the Russian–Norwegian fishery cooperation in the Barents Sea. The focus is on the common management of the shared cod resource, the Northeast Arctic cod stock. The article emphasizes the historical development of the cooperation in periods of changing political environment and different challenges for the common management agreement. The political changes define two distinct periods of bilateral cooperation and joint management. The first period is from 1975, when the Soviet Union and Norway established the Joint Soviet–Norwegian Fisheries Commission, to the end of the Soviet Union in 1991. The second period is from 1992 when the Russian Federation took over the obligations of fisheries cooperation with Norway from the Soviet Union. Although significant political, institutional and economic changes took place during these periods the biological facts remained, as the growth patterns and distribution of the exploited ecosystem did not change. The Russian exclusive economic zone (EEZ) is the main feeding area for juveniles and small cod, while the Norwegian EEZ includes spawning areas and the main feeding grounds for the mature and larger cod. The trust and cooperative spirit that developed through the Joint Fisheries Commission, both among researchers and managers of the two countries, has been crucial for the development of successful annual agreements and their outcomes. The Russian–Norwegian management of the Northeast Arctic cod stock has succeeded in protecting and maintaining the cod stock in the interest of both countries.

A review of bioeconomic modelling of habitat-fisheries interactions.

This paper reviews the bioeconomic literature on habitat-fisheries connections. Many such connections have been explored in the bioeconomic literature; however, missing from the literature is an analysis merging the potential influences of habitat on both fish stocks and fisheries into one general, overarching theoretical model. We attempt to clarify the nature of linkages between the function of habitats and the economic activities they support. More specifically, we identify theoretically the ways that habitat may enter the standard Gordon-Schaefer model, and nest these interactions in the general model. Habitat influences are defined as either biophysical or bioeconomic. Biophysical effects relate to the functional role of habitat in the growth of the fish stock and may be either essential or facultative to the species. Bioeconomic interactions relate to the effect of habitat on fisheries and can be shown through either the harvest function or the profit function. We review how habitat loss can affect stock, effort, and harvest under open access and maximum economic yield managed fisheries.

Just Fishing? Equity and Efficiency in Fisheries Management Regimes

This paper discusses distributional implications of different fisheries management regimes, using the Norwegian coastal cod fishery as a case study. We consider the trade-off between efficiency and equity (equality regarding different issues) in fisheries management by examining a simple model of vessels with different harvest technologies. While it may be argued that managers do not take explicit account of the equity concern, we suggest that the four management regimes applied in the Norwegian coastal cod fishery do in fact reflect a regard for distribution. Originally, in its most unregulated form, fishery management aimed at achieving efficiency. When stricter regulations were implemented due to declining stock size, we observed that management placed greater weight upon equity. As the stock situation was perceived to be improving, the management again shifted focus back to efficiency. Nonetheless we see that the concept of equal average production seems to be the basis for the management in the Norwegian coastal cod fishery prior to efficiency motivated reallocations.