IDEAS home Printed from https://ideas.repec.org/p/ags/nccewp/340061.html
   My bibliography  Save this paper

Community Impacts of Fishery Privatization

Author

Listed:
  • Sutherland, Sara A.
  • Edwards, Eric C.

Abstract

The adoption of secure, transferable property rights to a natural resource have efficiency properties appealing to economists, but faces opposition justified by concerns over potential negative impacts on rural communities. Major concerns include the consolidation of vessel ownership, job losses, and changes in community participation, but empirical evidence is limited. This paper examines the impact of the creation of individual transferable quotas (ITQs) to fish for Alaskan halibut and sablefish on rural fishing ports. Using data from the state of Alaska on fish landings, production, and community characteristics, we establish that the expected consolidation occurs in aggregate, and then examine the differential impact on rural communities. Although vessel consolidation is less pronounced in rural communities than larger ports with airport access, we do find limited evidence of reduced taxable sales revenue in rural ports. We examine whether two policies aimed at protecting rural economies—quota transfer restrictions and community development quota—were partially responsible for the limited consolidation in rural ports.

Suggested Citation

  • Sutherland, Sara A. & Edwards, Eric C., 2019. "Community Impacts of Fishery Privatization," CEnREP Working Papers 340061, North Carolina State University, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:nccewp:340061
    DOI: 10.22004/ag.econ.340061
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/340061/files/Sutherland.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.340061?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. McCay, Bonnie J., 2004. "ITQs and Community: An Essay on Environmental Governance," Agricultural and Resource Economics Review, Cambridge University Press, vol. 33(2), pages 162-170, October.
    2. Harrison Fell & Alan C. Haynie, 2013. "Spatial Competition With Changing Market Institutions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 28(4), pages 702-719, June.
    3. Matthew N. Reimer & Joshua K. Abbott & James E. Wilen, 2014. "Unraveling the Multiple Margins of Rent Generation from Individual Transferable Quotas," Land Economics, University of Wisconsin Press, vol. 90(3), pages 538-559.
    4. Kailin Kroetz & James N. Sanchirico & Daniel K. Lew, 2015. "Efficiency Costs of Social Objectives in Tradable Permit Programs," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(3), pages 339-366.
    5. Kurt E. Schnier & Ronald G. Felthoven, 2013. "Production Efficiency and Exit in Rights-Based Fisheries," Land Economics, University of Wisconsin Press, vol. 89(3), pages 538-557.
    6. Soliman, Adam, 2014. "Using individual transferable quotas (ITQs) to achieve social policy objectives: A proposed intervention," Marine Policy, Elsevier, vol. 45(C), pages 76-81.
    7. Homans, Frances R. & Wilen, James E., 2005. "Markets and rent dissipation in regulated open access fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 49(2), pages 381-404, March.
    8. Randall G. Holcombe & Russell S. Sobel, 2001. "Public Policy Toward Pecuniary Externalities," Public Finance Review, , vol. 29(4), pages 304-325, July.
    9. Quinn Weninger, 2008. "Economic Benefits of Management Reform in the Gulf of Mexico Grouper Fishery: A Semi-parametric Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(4), pages 479-497, December.
    10. Grafton, R Quentin & Squires, Dale & Fox, Kevin J, 2000. "Private Property and Economic Efficiency: A Study of a Common-Pool Resource," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 679-713, October.
    11. Homans, Frances R. & Wilen, James E., 1997. "A Model of Regulated Open Access Resource Use," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 1-21, January.
    12. McCay, Bonnie J., 2004. "ITQs and Community: An Essay on Environmental Governance," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 33(2), pages 1-9, October.
    13. Weninger, Quinn & Waters, James R., 2003. "Economic benefits of management reform in the northern Gulf of Mexico reef fish fishery," Journal of Environmental Economics and Management, Elsevier, vol. 46(2), pages 207-230, September.
    14. Jean-Marie Baland & Jean-Philippe Platteau, 1998. "Division of the Commons: A Partial Assessment of the New Institutional Economics of Land Rights," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 644-650.
    15. Stewart, James & Walshe, Kim & Moodie, Beverley, 2006. "The demise of the small fisher? A profile of exiters from the New Zealand fishery," Marine Policy, Elsevier, vol. 30(4), pages 328-340, July.
    16. James N. Sanchirico & James E. Wilen, 2007. "Global marine fisheries resources: status and prospects," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 7(2/3), pages 106-118.
    17. Corbett A. Grainger & Dominic P. Parker, 2013. "The Political Economy of Fishery Reform," Annual Review of Resource Economics, Annual Reviews, vol. 5(1), pages 369-386, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Matthew N. Reimer & Joshua K. Abbott & James E. Wilen, 2014. "Unraveling the Multiple Margins of Rent Generation from Individual Transferable Quotas," Land Economics, University of Wisconsin Press, vol. 90(3), pages 538-559.
    3. Christopher Costello & Corbett A. Grainger, 2018. "Property Rights, Regulatory Capture, and Exploitation of Natural Resources," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(2), pages 441-479.
    4. 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.
    5. repec:ags:aaea22:335749 is not listed on IDEAS
    6. Subal Kumbhakar & Frank Asche & Ragnar Tveteras, 2013. "Estimation and decomposition of inefficiency when producers maximize return to the outlay: an application to Norwegian fishing trawlers," Journal of Productivity Analysis, Springer, vol. 40(3), pages 307-321, December.
    7. Diekert , Florian & Lund , Kristen & Schweder, Tore, 2014. "From Open-Access to Individual Quotas: Disentangling the Effects of Policy Reform and Environmental Changes in the Norwegian Coastal Cod Fishery," Memorandum 07/2014, Oslo University, Department of Economics.
    8. 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.
    9. Reimer, Matthew N. & Rogers, Anthony & Sanchirico, James, 2024. "Adaptive Systems for Climate-Ready Fisheries Management," RFF Working Paper Series 24-06, Resources for the Future.
    10. Jardine, Sunny L. & Fisher, Mary C. & Moore, Stephanie K. & Samhouri, Jameal F., 2020. "Inequality in the Economic Impacts from Climate Shocks in Fisheries: The Case of Harmful Algal Blooms," Ecological Economics, Elsevier, vol. 176(C).
    11. Byrne, Conor & Oostdijk, Maartje & Agnarsson, Sveinn & Davidsdottir, Brynhildur, 2024. "The Transitional Gains Trap in Grandfathered Individual Transferable Quota Fisheries," Ecological Economics, Elsevier, vol. 215(C).
    12. Dale Squires & Yongil Jeon & R. Quentin Grafton & James Kirkley, 2010. "Controlling excess capacity in common-pool resource industries: the transition from input to output controls ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(3), pages 361-377, July.
    13. Nils-Arne Ekerhovd & Daniel V. Gordon, 2020. "Profitability, Capacity and Productivity Trends in an Evolving Rights Based Fishery: The Norwegian Purse Seine Fishery," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 77(3), pages 565-591, November.
    14. Torres, Marcelo de O. & Felthoven, Ronald G., 2014. "Productivity growth and product choice in catch share fisheries: The case of Alaska pollock," Marine Policy, Elsevier, vol. 50(PA), pages 280-289.
    15. Yue Tan & Sunny L. Jardine, 2019. "Considering Economic Efficiency in Ecosystem-Based Management: The Case of Horseshoe Crabs in Delaware Bay," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(2), pages 511-538, February.
    16. Catherine J. Morrison Paul & Ronald G. Felthoven & Marcelo de O. Torres, 2010. "Productive performance in fisheries: modeling, measurement, and management," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(3), pages 343-360, July.
    17. Martin F. Quaas & Max T. Stoeven & Bernd Klauer & Thomas Petersen & Johannes Schiller, 2018. "Windows of Opportunity for Sustainable Fisheries Management: The Case of Eastern Baltic Cod," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(2), pages 323-341, June.
    18. Tarui, Nori & Mason, Charles F. & Polasky, Stephen & Ellis, Greg, 2008. "Cooperation in the commons with unobservable actions," Journal of Environmental Economics and Management, Elsevier, vol. 55(1), pages 37-51, January.
    19. Asproudis, Elias & Filippiadis, Eleftherios, 2021. "Bargaining for Community Fishing Quotas," MPRA Paper 107409, University Library of Munich, Germany.
    20. Kailin Kroetz & James N. Sanchirico & Daniel K. Lew, 2015. "Efficiency Costs of Social Objectives in Tradable Permit Programs," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(3), pages 339-366.
    21. Melstrom, Richard T., 2015. "Cyclical harvesting in fisheries with bycatch," Resource and Energy Economics, Elsevier, vol. 42(C), pages 1-15.

    More about this item

    Keywords

    Public Economics;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:nccewp:340061. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/dancsus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.