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Exit and entry of fishing vessels: an evaluation of factors affecting investment decisions in the North Sea English beam trawl fleet

Citation

Tidd, AN and Hutton, T and Kell, LT and Padda, G, Exit and entry of fishing vessels: an evaluation of factors affecting investment decisions in the North Sea English beam trawl fleet, ICES Journal of Marine Science, 68, (5) pp. 961-971. ISSN 1054-3139 (2011) [Refereed Article]

Copyright Statement

Crown Copyright [2011]

DOI: doi:10.1093/icesjms/fsr015

Abstract

A profitable fishery attracts additional effort (vessels enter), eventually leading to overcapacity and less profit. Similarly, fishing vessels exit depending on their economic viability (or reduced expectations of future benefits) or encouraged by schemes such as decommissioning grants and/or when there is consolidation of fishing effort within a tradable rights-based quota system (e.g. individual transferable quotas). The strategic decision-making behaviour of fishers in entering or exiting the English North Sea beam trawl fishery is analysed using a discrete choice model by integrating data on vessel characteristics with available cost data, decommissioning grant information, and other factors that potentially influence anticipated benefits or future risks. It is then possible to predict whether operators choose to enter, stay, exit, or decommission. Important factors affecting investment include vessel age and size, future revenues, operating costs (e.g. fuel), stock status of the main target species, and the impact of management measures (e.g. total allowable catches) and total fleet size (a proxy for congestion). Based on the results, the predicted marginal effects of each factor are presented and the impact of each is discussed in the context of policies developed to align fleet capacity with fishing opportunities.

Item Details

Item Type:Refereed Article
Keywords:decision-making, discrete choice model, entry, exit, investment, linear models, overcapacity, random utility model, RUM, vpue
Research Division:Agricultural and Veterinary Sciences
Research Group:Fisheries Sciences
Research Field:Fisheries Management
Objective Division:Environment
Objective Group:Ecosystem Assessment and Management
Objective Field:Ecosystem Assessment and Management of Marine Environments
Author:Tidd, AN (Dr Alexander Tidd)
ID Code:116226
Year Published:2011
Web of Science® Times Cited:31
Deposited By:Centre for Fisheries and Aquaculture
Deposited On:2017-05-03
Last Modified:2017-11-04
Downloads:0

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