Topic 15 and 16: Fisheries

Question 1

Fisheries as CPR

Answer 1

Are shared by fisherman and even by countries in way that resembles open access

Deep sea fisheries provide more evidence for Hardin’s ‘tragic’ predictions than Ostrom’s optimism

Exemplify why COR are often managed inefficiently

Question 2

Why do fisheries collapse?

Answer 2

Fishermen and countries grabbing a share

Failure of politicians to manage fisheries efficiently by reducing fishing effort

Not accounting for value of fish in sea to support biomass growth

Stock increases reduce the cost of catching fish

Question 3

Equations

Answer 3

Prices: price of fish, w: cost of effort

Total rev: pq=p f(e) where f(e) is the yield effort curve

Total cost is: w e

Profit = pq - we = pf(e)- w e

Question 4

NZ Quota Management System

Answer 4

To replace an effort-based restriction on fishing

Alter TACC for given fish stick without selling or purchasing quota from commercial sector

Removed the gov’s financial and shifted catch risk from gov to fishing industry

Question 5

Overcome market failure

Answer 5

Restrict effort to epm (make effort tradable)

Introduce catch quotas to wpm (make quotas tradable)

Give ownership of stock to one firm