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Maximizing profits and conserving stocks in the Australian Northern Prawn Fishery

Author

Listed:
  • Tom Kompas
  • Cathy M. Dichmont
  • André E. Punt
  • A. Deng
  • Tuong Nhu Che
  • Janet Bishop
  • Peter Gooday
  • Yemin Ye
  • S. Zhou

Abstract

The Australian Northern Prawn Fishery (NPF) is one of the few that has adopted a dynamic version of a 'maximum economic yield' (MEY) target, and, on this basis, the fishery is undergoing a process of substantial stock rebuilding. This study details the bioeconomic model used to provide scientific management advice for the NPF, in terms of the amount of allowable total gear length in the fishery, for both the MEY target and the path to MEY. It combines the stock assessment process for two species of tiger prawns with a specification for discounted economic profits, where the harvest function in the profit equation is stock-dependent. Results for the NPF show a substantial 'stock effect', indicating the importance of conserving fish stocks for profitability. MEY thus occurs at a stock size that is larger than that at maximum sustainable yield, leading to a 'win-win' situation for both the industry (added profitability) and the environment (larger fish stocks and lower impact on the ecosystem). Sensitivity results emphasize this effect by showing that the MEY target is much more sensitive to changes in the price of prawns and the cost of fuel, and far less so to the rate of discount. Copyright 2010 The Authors. Journal compilation 2010 Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Asia Pty Ltd.

Suggested Citation

  • Tom Kompas & Cathy M. Dichmont & André E. Punt & A. Deng & Tuong Nhu Che & Janet Bishop & Peter Gooday & Yemin Ye & S. Zhou, 2010. "Maximizing profits and conserving stocks in the Australian Northern Prawn Fishery," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(3), pages 281-299, July.
    • Handle: RePEc:bla:ajarec:v:54:y:2010:i:3:p:281-299
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    References listed on IDEAS

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    1. Tom Kompas & Tuong Nhu Che & R. Quentin Grafton, 2004. "Technical efficiency effects of input controls: evidence from Australia's banana prawn fishery," Applied Economics, Taylor & Francis Journals, vol. 36(15), pages 1631-1641.
    2. Richard Horan & James Shortle, 1999. "Optimal Management of Multiple Renewable Resource Stocks: An Application to Minke Whales," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 13(4), pages 435-458, June.
    3. Ahmed, Mahfuzuddin & Boonchuwongse, Pongpat & Dechboon, Waraporn & Squires, Dale, 2007. "Overfishing in the Gulf of Thailand: policy challenges and bioeconomic analysis," Environment and Development Economics, Cambridge University Press, vol. 12(1), pages 145-172, February.
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    Cited by:

    1. Diop, Bassirou & Sanz, Nicolas & Duplan, Yves Jamont Junior & Guene, El Hadji Mama & Blanchard, Fabian & Pereau, Jean-Christophe & Doyen, Luc, 2018. "Maximum Economic Yield Fishery Management in the Face of Global Warming," Ecological Economics, Elsevier, vol. 154(C), pages 52-61.
    2. Da Rocha, José María & Gutiérrez Huerta, María José & Taboada Antelo, Luis, 2011. "Pulse vs. Optimal Stationary Fishing: The Northern Stock of Hake," DFAEII Working Papers 1988-088X, University of the Basque Country - Department of Foundations of Economic Analysis II.
    3. Sean Pascoe & Simon Vieira & Catherine M. Dichmont & André E. Punt, 2011. "Optimal vessel size and output in the Australian northern prawn fishery: a restricted profit function approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(1), pages 107-125, January.
    4. R. Quentin Grafton & Tom Kompas, 2014. "Three Pillars of Fisheries Policy," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 1(3), pages 609-614, September.
    5. Dennis, Darren & Plagányi, Éva & Van Putten, Ingrid & Hutton, Trevor & Pascoe, Sean, 2015. "Cost benefit of fishery-independent surveys: Are they worth the money?," Marine Policy, Elsevier, vol. 58(C), pages 108-115.
    6. Thanh Viet Nguyen, 2011. "Sustainable Management of Shrimp Trawl Fishery in Tonkin Gulf, Vietnam," Applied Economics Journal, Kasetsart University, Faculty of Economics, Center for Applied Economic Research, vol. 18(2), pages 65-81, December.
    7. Yamazaki, Satoshi & Jennings, Sarah & Quentin Grafton, R. & Kompas, Tom, 2015. "Are marine reserves and harvest control rules substitutes or complements for rebuilding fisheries?," Resource and Energy Economics, Elsevier, vol. 40(C), pages 1-18.
    8. Stefano Mainardi, 2021. "Parametric and Semiparametric Efficiency Frontiers in Fishery Analysis: Overview and Case Study on the Falkland Islands," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(2), pages 169-210, June.
    9. José-María Da-Rocha & Rosa Mato-Amboage, 2016. "On the Benefits of Including Age-Structure in Harvest Control Rules," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(4), pages 619-641, August.
    10. Caputi, Nick & de Lestang, Simon & Reid, Chris & Hesp, Alex & How, Jason, 2015. "Maximum economic yield of the western rock lobster fishery of Western Australia after moving from effort to quota control," Marine Policy, Elsevier, vol. 51(C), pages 452-464.
    11. Stephanie McWhinnie & Kofi Otumawu-Apreku, 2013. "The Role of Fixed Cost and Non-Discretionary Variables in Fisheries: A Theoretical and Empirical Investigation," School of Economics and Public Policy Working Papers 2013-14, University of Adelaide, School of Economics and Public Policy.

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