Topic 6 - Fishing

Question 1

What does the Schaefer model represent?

Answer 1

Posits an average relationship between the growth of the fish population and the size of the fish population (graph)

Question 2

Define: static-efficient sustainable yield

Answer 2

The catch level that, if maintained perpetually, would produce the largest annual net benefit

Question 3

List the assumptions of the model

Answer 3

1 - The price of fish is constant and does not depend on the amount sold.

2 - The marginal cost of a unit of fishing effort is constant.

3 - The amount of fish caught per unit of effort expended is proportional to the size of the fish population

Question 4

What are the two kinds of external cost associated with open-access

Answer 4

1 - Contemporaneous external costs are the costs imposed on the current generation from overfishing. Too many resources (boats, fishermen, etc.) are committed to fishing

2 - Intergenerational external costs are the costs imposed on the future generation from the exploitation of the stock today. Overfishing reduces stocks and thus future profits

Question 5

Outline Aquaculture

Answer 5

The controlled raising and harvesting of fish.

Fish farming involves cultivating fish over their lifetime.

Fish ranching involves holding fish in captivity for the first few years of their lives

Question 6

Outline the three characteristics of an efficient quota system

Answer 6

1 - The quotas entitle the holder to catch a specified volume of a specified type of fish.

2 - The total amount of fish authorized by the quotas should be equal to the efficient catch level for that fishery.

3 - The quotas should be freely transferable among fishermen

Question 7

What is the 200-Mile Exclusion Zone?

Answer 7

An international policy solution that has been implemented.

Countries bordering the sea now have ownership rights that extend 200 miles offshore. Within the 200-mile limit, the countries have exclusive jurisdiction.

Protecting coastal fisheries, but not open ocean