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Increasing Pressure on Unregulated Species Due to Changes in Individual Vessel Quotas: An Empirical Application to Trawler Fishing in the Baltic Sea

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  • Barbara Hutniczak

Abstract

Individual vessel quotas (IVQs) established on an important target species are a common tool to regulate fisheries. This article investigates fishermen's behavior in a situation in which a primary output quota is decreasing due to policy restrictions. The findings suggest that vessels respond to such situations by increasing pressure on unregulated species, using their spare capacity. This article models fishermen's behavior using a restricted profit function, treating the harvest of regulated species as fixed, while unregulated species are variable outputs. An empirical application is provided for the Polish trawler fleet with permits to harvest IVQ-regulated Atlantic Cod in the Baltic Sea. The results indicate a strong substitute relationship between the cod quota and pelagic species. Derived elasticities of intensity, providing a measure of the impact of a fixed-factor on variable factors, offer strong evidence of increasing pressure on pelagic species caused by decreasing quotas.

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  • Barbara Hutniczak, 2014. "Increasing Pressure on Unregulated Species Due to Changes in Individual Vessel Quotas: An Empirical Application to Trawler Fishing in the Baltic Sea," Marine Resource Economics, University of Chicago Press, vol. 29(3), pages 201-217.
    • Handle: RePEc:ucp:mresec:doi:10.1086/677760
    DOI: 10.1086/677760
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    2. Christian Elleby & Frank Jensen, 2018. "How Many Instruments Do We Really Need? A First-Best Optimal Solution to Multiple Objectives with Fisheries Regulation," IFRO Working Paper 2018/05, University of Copenhagen, Department of Food and Resource Economics.
    3. Staffan Waldo & Frank Jensen & Max Nielsen & Hans Ellefsen & Jónas Hallgrimsson & Cecilia Hammarlund & Øystein Hermansen & John Isaksen, 2016. "Regulating Multiple Externalities: The Case of Nordic Fisheries," Marine Resource Economics, University of Chicago Press, vol. 31(2), pages 233-257.
    4. Vasquez Caballero, Smit & Salgueiro-Otero, Diego & Ojea, Elena, 2023. "The Role of Catch Portfolios in Characterizing Species' Economic Linkages and Fishers' Responses to Climate Change Impacts," Ecological Economics, Elsevier, vol. 205(C).
    5. Corbett A. Grainger & Christopher Costello, 2016. "Distributional Effects of the Transition to Property Rights for a Common-Pool Resource," Marine Resource Economics, University of Chicago Press, vol. 31(1), pages 1-26.
    6. Hing Ling Chan & Minling Pan, 2016. "Spillover Effects of Environmental Regulation for Sea Turtle Protection in the Hawaii Longline Swordfish Fishery," Marine Resource Economics, University of Chicago Press, vol. 31(3), pages 259-279.
    7. Barbara Hutniczak & Niels Vestergaard & Dale Squires, 2019. "Policy Change Anticipation in the Buyback Context," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(1), pages 111-132, May.
    8. Kaiser, Brooks A. & Bakanev, Sergey & Bertelsen, Rasmus Gjedsø & Carson, Marcus & Eide, Arne & Fernandez, Linda & Halpin, Patrick & Izmalkov, Sergei & Kyhn, Line A. & Österblom, Henrik & Punt, Maarten, 2015. "Spatial issues in Arctic marine resource governance workshop summary and comment," Marine Policy, Elsevier, vol. 58(C), pages 1-5.
    9. Hutniczak, Barbara, 2015. "Modeling heterogeneous fleet in an ecosystem based management context," Ecological Economics, Elsevier, vol. 120(C), pages 203-214.
    10. Anna M. Birkenbach & Andreea L. Cojocaru & Frank Asche & Atle G. Guttormsen & Martin D. Smith, 2020. "Seasonal Harvest Patterns in Multispecies Fisheries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(3), pages 631-655, March.

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