Rights Based Fishing PDF
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Rights Based Fishing NATO ASI Series Advanced Science Institutes Series A Series presenting the results of activities sponsored by the NA TO Science Committee, which aims at the dissemination of advanced scientific and technological knowledge, with a view to strengthening links between scientific communities. The Series is published by an international board of publishers in conjunction with the NATO Scientific Affairs Division A Life Sciences Plenum Publishing Corporation B Physics london and New York C Mathematical Kluwer Academic Publishers and Physical Sciences Dordrecht, Boston and london o Behavioural and Social Sciences E Applied Sciences F Computer and Systems Sciences Springer-Verlag G Ecological Sciences Berlin, Heidelberg, New York, london, H Cell Biology Paris and Tokyo Series E: Applied Sciences -Vol. 169 Rights Based Fishing edited by Philip A. Neher Department of Economics, The University of British Columbia, Vancouver, B.C., Canada Ragnar Arnason and Nina Mollett Faculty of Economics and Business Administration, University of Iceland, Reykjavik, Iceland Kluwer Academic Publishers Dordrecht / Boston / London Published in cooperation with NATO Scientific Affairs Division Proceedings of the NATO Advanced Research Workshop on Scientific Foundations for Rights Based Fishing Reykjavik, Iceland June 27 - July 1, 1988 Library of Congress cataloging In Publication Data Workshop on the Scientific Foundations for Rights Based Fishing (1988 : Reykjavik, Iceland) Rights based fishing: proceedings of a Workshop on the Scientific Foundations for Rights Based Fishing, Reykjavik, June 27-July 1, 1988 I edited by Philip A. Neher, Ragnar Arnason, Nina Mollett. p. CIII. -- (NATO ASI series. Series E, Applied sciences; no. 169) Inc 1u des i nde,. 1. Fishery law and legislation--Congresses. 2. Economic zones (Maritime law)--Congresses. 3. Territorial waters--Congresses. 1. Neher, Philip A., 1934- II. Arnason, Ragnar, 1949- III. Mollett, Nina. IV. Title. V. Series. K3894.6 1988 343' .07692--dc20 [342.376921 89-2550 CIP ISBN-13: 978-94-010-7568-8 e-ISBN-13: 978-94-009-2372-0 DO\: 10.1007/978-94-009-2372-0 Published by Kluwer Academic Publishers, P.O. Box 17,3300 AA Dordrecht, The Netherlands. Kluwer Academic Publishers incorporates the publishing programmes of D. Reidel, Martinus Nijhoff, Dr W. Junk and MTP Press. Sold and distributed in the U.S.A. and Canada by Kluwer Academic Publishers, 101 Philip Drive, Norwell, MA 02061, U.S.A. In all other countries, sold and distributed by Kluwer Academic Publishers Group, P.O. Box 322, 3300 ,\H Dordrecht, The Netherlands. printed on acid free paper All Rights Reserved © 1989 by Kluwer Academic Publishers Softcover reprint of the hardcover 1s t edition 1989 No part of the material protected by this copyright notice may be reproduced or utilized in any form or by any means, electronic or mechanical, including photo copying, recording or by any information storage and retrieval system, without written permission from the copyright owner. To Professors Anthony Scott and James Crutchfield, whose teachings and insights have proved an inspiration to a generation off ishery economists. Table of Contents Acknowledgements xi Preface xiii Introduction 1 I. Foundations of Rights Based Fishing 5 Conceptual Origins of Rights Based Fishing 11 Anthony D. Scott Comments - Gary D. Libecap 39 Is Fishery Management at a Turning Point? Reflections on the Evolution of Rights Based Fishing 47 R. Bruce Rettig Comments - Daniel D. Huppert 65 II. Traditional and Territorial Use Rights 69 The Organization of Traditional Inshore Fishery Management Systems in the Pacific 73 Kenneth Ruddle Comments - Theodore Panayotou 86 III. Exclusive Economic Zones 95 Coastal State "Rights" Within the 200-mile Exclusive Economic Zone 97 Donald McRae and Gordon Munro IV. Individual Transferable Quotas: Part One 113 The Development and Implementation of New Zealand's ITO Management System 117 Ian N. Clark, Philip 1. Major and Nina Mollett Comments - Daniel D. Huppert 146 Comments -James E. Wilen 150 viii Applied Fisheries Management Plans: Individual Transferable Quotas and Input Controls 153 David Wesney Comments - Peder Andersen 182 v. Individual Transferable Quotas: Part Two 185 Conceptual Constructs for Practical ITQ Management Policies 191 Lee G. Anderson Comments - Gary B. Libecap 210 Minimum Information Management with the Help of Catch Quotas 215 Ragnar Amason Comments - Parzival Copes 242 VI. License Limitation 247 Rent Generation in Limited Entry Fisheries 249 James E. Wuen Comments - Rognvaldur Hannesson 263 VII. Enterprise Quotas 265 Enterprise Allocations: The Atlantic Canadian Experience 267 Cheryl A. Fraser and J. B. Jones Comments - Michael Gardner 289 The Enterprise Allocation System in the Offshore Groundfish Sector in Atlantic Canada 293 Michael Gardner VIII. Fee Fishing 321 Development, Economics and Fishing Rights in the South Pacific Tuna Fishery 323 Geoffrey Waugh Comments - Kenneth Ruddle 349 IX. Empirical Modelling 351 Individual Transferable Quotas in the Southern Bluefin Tuna Fishery: An Economic Appraisal 355 Gerry Geen and Mark Nayar Comments - Parzival Copes 382 ix Price Response and Optimal Vessel Size in a Multi-Output Fishery 389 Trond Bj~mdal and Daniel V. Gordon Comments -John M. Gates 412 An Econometric Study of Regulatory Enforcement and Compliance in the Commercial Inshore Lobster Fishery of Massachusetts 415 Jon G. Sutinen and John R. Gauvin Comments - Daniel V. Gordon 429 X. Theoretical Modelling 433 Should Quotas be Based on Shadow Value Rather than Weight? A Numerical Study on the Icelandic Cod Fisheries 435 Thorkell Helgason Comments - Trond Bj~mdal 457 Catch Quotas and the Variability of Allowable Catch 459 Rognvaldur Hannesson Fixed or Variable Catch Quotas? The Importance of Population Dynamics and Stock Dependent Costs 467 Rognvaldur Hannesson Comments - Peder Andersen 481 The Economics of Predator-Prey Harvesting 485 OlaFlaaten Fishing Quota Management with Multiple Stock Objectives 505 Philip A. Neher Comments -James E. Wden 525 Author Index 529 Subject Index 533 ACKNOWLEDGEMENTS We wish to thank Rognvaldur Hannesson and Anthony Scott, who served as consul tants to the editors and were unstintingly generous with their time. We also wish to thank Daniel Karvonen and Ramon Baker for their fine assistance in preparing the manuscript, as well as our dedicated typists, Hildur Bjamad6ttir and Al5alheil5ur 6feigsd6ttir. The conference was a NATO Advanced Research Workshop, and the Scientific Affairs Division of NATO was a major financial contributor to the workshop. Additional support was provided by the Icelandic Ministry of Fisheries, the Norwegian Fisheries Research Council, the Canadian Department of Fisheries and Oceans, the University of British Columbia, the University of Iceland, and the National Bank of Iceland. xi PREFACE The genesis of this conference was on a quay of the port of Bergen in March 1985. Ragnar Amason suggested to Phil Neher a small, mid-Atlantic conference on recent developments in fishery management. In the event, more than twenty papers were scheduled and over one hundred and fifty conferees were registered. Logistical complications were sorted through for a summer 1988 conference in Iceland. The really innovative management programs were in the South Pacific; Aus tralia and New Zealand had introduced Individual Transferable Quotas (ITQs); and Iceland, Norway and Canada were also experimenting with quotas. It seemed to the program committee (Rognvaldur Hannesson and Geoffrey Waugh were soon on board) that these quotas had more or less characteristics of property rights. Property rights were also taking other forms in other places (time and area licenses, restrictive licensing of vessels and gear, traditional use rights). The idea of rights based fishing became the theme of the conference. Earlier conferences had led the way. A series of FAO conferences, especially the Ottawa Conference held in 1962 (Hamlish 1962) and conferences building foundations for the Law of the Sea Convention, conveyed three messages. First, fish stocks were being afforded protection, if any at all, by policies which favoured equal access for anyone who wished to dip a net or drop a line. Global quotas with artificially short seasons and some gear restrictions were traditional management methods in use. Second, management objectives were driven mainly by biological criteria, and stocks were generally managed to support maximum sustained yield. Finally, competition among user groups of fishers to harvest from available stocks inevitably eroded the effect of management efforts to achieve conservation objectives (see Grover 1980, p. 29) for a good example). Many important stocks were seriously depleted. Early efforts by economists to define fish stocks as natural, renewable assets, subject to control by techniques of capital asset management, had little practical impact. We have in mind the University of British Columbia symposium (1970) on the economics of fisheries management (Scott 1970). It appeared for a while that restrictive licensing of vessels and gear could con trol fishing power of fleets, relieve pressure on stocks, and permit longer seasons. This was the topic of the Powell River Conference held in 1979 (Pearse 1979). In the event, license programs largely failed in their purposes. But licenses did acquire market values, thereby establishing the precedent that an administrative instrument (the license) could acquire characteristics of a property right. Papers delivered at the 1980 FAO Vichy Conference (Grover 1980) offered lit tle evidence that much had been learned about fisheries management since 1962. xiii
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