The “Environmental Economics” View

Question 1

Given a natural population growth curve for a fishery, explain what is being depicted at 1) the peak, 2) the left and right sides of the peak and 3) the end point on the right side.

Answer 1

1. The peak:
   More eggs
   Overall larger base population, base population doesn’t hurt
   Enough resources
   Higher survival
   Adding the most each year, growing the fastest
2. Left side:
   slow growth; harder to breed, less eggs
   Die off
   Increasing population but in small amounts
3. Right side:
   Environment can’t hold the amount
   Competing for food, and resources
   Still growing
4. End point on right side:
   Carrying capacity → stabilizing

Question 2

Define effort – identifying at least three examples of how fishers increase effort

Answer 2

Effort: the ‘inputs’ fishers increase in order to catch more fish
Buy more boats
Bigger boats
Bigger nets

Question 3

Given a steady state equilibrium model
1) explain why, at any constant level of effort (e.g. # of boats), a fishery will eventually reach a sustainable level

Answer 3

-At a constant level of effort ( # of boats) and regrowth rate (stock) matches harvest rate, and do this year after year it makes it to a sustainable level
-Steady state → where the points meet

-If the fishers’ harvest is higher than fish population growth rates, population & stock will decrease

-And, if the fishers’ harvest is less than fish population growth rates, population & stock increase

-Eventually..it will hit the steady state point where harvest is equal to population regrowth rate

Question 4

Given a constant level of effort, identify on the curve 1) what the fish harvest would be and 2) what the fish stock size would be.

1.If set constant level of effort (5 boats)&raquo_space; what would the stock be?
2. If set minimum level stock level at S3&raquo_space; how much effort allowable?
3. How much harvest is attainted if set effort at 5 boats?
4. What level of effort targeted, and harvest/stock size achieved at MSY?

Answer 4

1. S4
2. 10
3. H1
4. 15, S2, H3
5. Given the fish stock - Fish harvest would be determined by where the stocking rate intersects the natural growth curve
6. Given number of vessels - Fish stock size is determined by the number of boats intersecting with the X axis [will be a graph on the exam]
7. the number of boats at the can be supported at the peak regrowth of the fishery (peak of graph)
   15 boats → peak growth = maximum sustainable yield

Question 5

Given a Revenue/Cost curve, identify the “maximum sustainable yield” and “maximum economic yield (profit)” point