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Experimental analysis of the use of fishery closures and cooperatives to reduce economic rent dissipation caused by assignment problems


Emery, TJ and Tisdell, J and Green, BS and Hartmann, K and Gardner, C and Leon, R, Experimental analysis of the use of fishery closures and cooperatives to reduce economic rent dissipation caused by assignment problems, ICES Journal of Marine Science, 72, (9) pp. 2650-2662. ISSN 1054-3139 (2015) [Refereed Article]

Copyright Statement

Copyright 2015 International Council for the Exploration of the Sea

DOI: doi:10.1093/icesjms/fsv148


Assignment problems in quota-managed fisheries are caused by spatial and temporal heterogeneity in the productivity of the stock. If the quota management system is not fully delineated (e.g. harvest rights assigned to particular areas) then fishers will compete with each other and overexploit parts of the fishery where or when the quota unit value is highest (i.e. fishing costs low and/ or market price high), leading to economic rent dissipation. This study used experimental economics to assess the effectiveness of fishery temporal closures and income-sharing fishery cooperatives in resolving assignment problems across three different fisheries with varying levels of fisher heterogeneity (i.e. numbers of quota owners and lease quota fishers). While most fisheries were successful in reducing economic rent dissipation under the fishery closure management structure relative to their baseline(s), fisheries characterized by a greater number of lease quota fishers were less effective. This was due to the differential values that lease quota fishers place on the resource relative to quota owners, due to having insecurity of tenure and diminished wealth in having to bid for a quota package and pay for it using their revenue from fishing. Conversely, income-sharing fishery cooperatives were equally successful across all three fisheries in reducing assignment problems relative to their baseline(s). This was because income-sharing created an incentive to coordinate fishing effort, particularly among heterogeneous groups. While requiring further exposition in the field, these experimental results represent a first step in identifying management institutions that may assist fishers under quota management to resolve assignment problems in a dynamic environment.

Item Details

Item Type:Refereed Article
Keywords:behaviour, cooperatives, experimental economics, fisheries management, fishery closures, ITQ, quota
Research Division:Agricultural, Veterinary and Food Sciences
Research Group:Fisheries sciences
Research Field:Fisheries management
Objective Division:Animal Production and Animal Primary Products
Objective Group:Fisheries - wild caught
Objective Field:Wild caught rock lobster
UTAS Author:Emery, TJ (Dr Timothy Emery)
UTAS Author:Tisdell, J (Professor John Tisdell)
UTAS Author:Green, BS (Associate Professor Bridget Green)
UTAS Author:Hartmann, K (Associate Professor Klaas Hartmann)
UTAS Author:Gardner, C (Professor Caleb Gardner)
UTAS Author:Leon, R (Mr Rafael Leon)
ID Code:102637
Year Published:2015
Web of Science® Times Cited:7
Deposited By:IMAS Research and Education Centre
Deposited On:2015-09-01
Last Modified:2017-11-04

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