Fishery Economics

Question 1

Gordon bionomic fishery model focus

Answer 1

inefficiency associated with opoen-access, and loss in welfare associated with too much effort being employed

Question 2

Gordon suggests:

Answer 2

• A monopoly within the fishery to prevent inefficiency

- limiting effort (gov. has implemented)

Question 3

Shortcomings of the gordon model

Answer 3

• ## Static in nature (one time period), rather than dynamic-> can’t apply discount rates

Question 4

Anderson’s policy appraoches

Answer 4

“Limited-entry’ techniques: limit # of vessels or limit allowable catch
“ Open-access” techniques: modify fishing behavior by increase price of equipment for example causing the marginal fisher to become unprofitable.

Question 5

Limited Entry Techniques

Answer 5

• Limited entry techniques are analogous to economic incentives in pollution control
• Increase cost to fishers but not social costs e.g tax on fishers with tax revenues going to society.
• tax e.g: marketable permits or on catch.

Question 6

“bionomic” Gordons model

Answer 6

static, no time consideration (year by year)

Question 7

MSY is unlikely because..

Answer 7

TC would have to be 0

Question 8

if marginal cost is above 0, efficient level of harvesting would have to __ than MSY effort

Answer 8

less

Question 9

ITQ (individual transferable quotas)

Answer 9

• cap on about of catch

- essentaill movie MC to the same as a tax

Question 10

lower MC for rent will ___ catch and ___ economic profit

Answer 10

increase; increase