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Endogenous Fishery Management in a Stochastic Model: Why Do Fishery Agencies Use TACs Along with Fishing Periods?

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  • José Da Rocha
  • María Gutiérrez

Abstract

This paper seeks to explain the circumstances under which using total allowable catch (TAC) as an instrument to manage a fishery along with fishing periods may be of interest from a regulatory point of view. The deterministic analysis by Homans and Wilen (J Environ Econ Manag 32:1–21, 1997 ) and Anderson (Ann Oper Res 94:231–257, 2000 ) is thus extended to a stochastic scenario where the resource cannot be measured accurately. The resulting model is solved numerically to find the optimal control rules in the Iberian sardine stock. Three relevant conclusions can be highlighted from simulations: first, the greater the uncertainty regarding the state of the stock, the lower the probability of the fishery being closed before the end of the fishing period. Second, the use of TACs as a management instrument in fisheries that are already regulated by fishing periods leads to: (i) an increase in the optimal season length and harvests, especially for medium and high numbers of licences; (ii) improved biological and economic variables when the fleet is large; and (iii) extinction risk for the resource being eliminated. Third, the regulator would rather select the number of licences than restrict the season length. Copyright Springer Science+Business Media B.V. 2012

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  • José Da Rocha & María Gutiérrez, 2012. "Endogenous Fishery Management in a Stochastic Model: Why Do Fishery Agencies Use TACs Along with Fishing Periods?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(1), pages 25-59, September.
    • Handle: RePEc:kap:enreec:v:53:y:2012:i:1:p:25-59
    DOI: 10.1007/s10640-012-9546-6
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    1. Da Rocha Alvarez, Jose Maria & Prellezo, Raul & Sempere, Jaume & Taboada-Antelo, Luis, 2016. "Fleet dynamics and capital malleability," MPRA Paper 75370, University Library of Munich, Germany.
    2. Da Rocha Alvarez, Jose Maria & Prellezo, Raul & Sempere, Jaume & Taboada-Antelo, Luis, 2016. "Fleet dynamics and overcapitalization under rational expectations," MPRA Paper 79578, University Library of Munich, Germany.
    3. van Dijk, Diana & Hendrix, Eligius M.T. & Haijema, Rene & Groeneveld, Rolf A. & van Ierland, Ekko C., 2014. "On solving a bi-level stochastic dynamic programming model for analyzing fisheries policies: Fishermen behavior and optimal fish quota," Ecological Modelling, Elsevier, vol. 272(C), pages 68-75.
    4. José-María Da-Rocha & Linda Nøstbakken & Marcos Pérez, 2014. "Pulse Fishing and Stock Uncertainty," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(2), pages 257-274, October.
    5. Diwakar Poudel & Leif K. Sandal & Sturla F. Kvamsdal, 2015. "Stochastically Induced Critical Depensation and Risk of Stock Collapse," Marine Resource Economics, University of Chicago Press, vol. 30(3), pages 297-313.
    6. Colla-De-Robertis, Esteban & Da-Rocha, Jose-Maria & García-Cutrin, Javier & Gutiérrez, María-José & Prellezo, Raul, 2018. "A bayesian estimation of the economic effects of the Common Fisheries Policy on the Galician Fleet: a dynamic stochastic general equilibrium approach," MPRA Paper 89944, University Library of Munich, Germany.
    7. Diana Dijk & Eligius M. T. Hendrix & Rene Haijema & Rolf A. Groeneveld & Ekko C. Ierland, 2017. "An Adjustment Restriction on Fish Quota: Resource Rents, Overcapacity and Recovery of Fish Stock," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(2), pages 203-230, June.
    8. Jose Maria Rocha & Javier García-Cutrín & Maria-Jose Gutiérrez & Raul Prellezo & Eduardo Sanchez, 2021. "Dynamic Integrated Model for Assessing Fisheries: Discard Bans as an Implicit Value-Added Tax," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(1), pages 1-20, September.
    9. Da Rocha, José María & Gutiérrez Huerta, María José & Villasante, Sebastián, 2013. "Economic Effects of Global Warming under Stock Growth Uncertainty: The European Sardine Fishery," DFAEII Working Papers 1988-088X, University of the Basque Country - Department of Foundations of Economic Analysis II.
    10. Andries Richter & Anne Maria Eikeset & Daan Soest & Florian Klaus Diekert & Nils Chr. Stenseth, 2018. "Optimal Management Under Institutional Constraints: Determining a Total Allowable Catch for Different Fleet Segments in the Northeast Arctic Cod Fishery," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(4), pages 811-835, April.

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