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Putting Economics into Maximum Economic Yield

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  • Dale Squires
  • Niels Vestergaard

Abstract

Maximum economic yield (MEY) can be extended along two dimensions beyond the common resource stock externality: (1) the appropriate measurement of costs and benefits and (2) extending MEY beyond the relationship between the harvest sector and the resource stock externality. Only when all economic distortions are accounted for and valued by economic (shadow) prices does MEY actually represent a full economic optimum. Accounting for dynamic technical and allocative efficiency extends MEY beyond the traditional dynamic scale efficiency. When accounting for accumulated and new technology and nonmarket public good benefits from biodiversity and ecosystem services, an open question remains whether the MEY resource stock exceeds, equals, or falls short of the MSY resource stock. Without no-growth, steady-state equilibrium, adaptive management is required using non-autonomous bioeconomic models or continuous updating of autonomous ones.

Suggested Citation

  • Dale Squires & Niels Vestergaard, 2016. "Putting Economics into Maximum Economic Yield," Marine Resource Economics, University of Chicago Press, vol. 31(1), pages 101-116.
    • Handle: RePEc:ucp:mresec:doi:10.1086/683670
    DOI: 10.1086/683670
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    Cited by:

    1. Natali, F. & Toraldo, G. & Giannino, F. & Cicia, G. & Branca, G., 2024. "Policy management of the Italian small pelagic fishery in the Adriatic Sea: A dynamic maximum economic yield approach," Ecological Economics, Elsevier, vol. 224(C).
    2. Grafton, R. Quentin & Squires, Dale & Steinshamn, Stein Ivar, 2023. "Towards resilience-based management of marine capture fisheries," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 231-238.
    3. Pascoe, Sean & Hutton, Trevor & Hoshino, Eriko, 2018. "Offsetting Externalities in Estimating MEY in Multispecies Fisheries," Ecological Economics, Elsevier, vol. 146(C), pages 304-311.

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