An Economic Analysis of Highgrading in ITQ Fisheries Regulation Programs

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An Economic Analysis of Highgrading in ITQ Fisheries Regulation Programs

Author Info

Anderson, Lee G.

Abstract

ITQ management programs can provide incentives to discard low valued fish so that individual quota can he used for relatively more valuable fish. Such "highgrading" can also occur where there are other constraints on harvest, such as hold capacity. This paper compares and contrasts the exact conditions under which highgrading will occur with ITQ and other harvest constraints. Considering all costs, highgrading can be efficient with physical constraints hut it is an unfortunate artifact of lTQs. Whether or not highgrading will occur depends upon the price differential between high and low valued fish, the cost of sorting and discarding and the cost of re-harvest. Policies for correcting or reducing ITQ highgrading should it occur, are described.

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Publisher Info
Article provided by Marine Resources Foundation in its journal Marine Resource Economics.

Volume (Year): 09 (1994)
Issue (Month): 3 ()
Pages:
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Handle: RePEc:ags:mareec:48889

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Kristofferson, Dadi & Rickertsen, Kyre, 2005. "High-Grading in a Quota-Regulated Fishery, with Empirical Evidence from the Icelandic Cod Fishery," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24722, European Association of Agricultural Economists. [Downloadable!]
Abbott, Joshua K. & Wilen, James, 2006. "Strategic Joint Production Under Common-Pool Output Quotas: The Case of Fisheries Bycatch," 2006 Annual meeting, July 23-26, Long Beach, CA 21468, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
Phoebe Koundouri & Trond Bjorndal & Sean Pascoe, 2004. "Output Substitution in Multi-Species Trawl Fisheries: Implications for Quota Setting," Working Papers 2004.30, Fondazione Eni Enrico Mattei. [Downloadable!]
Vestergaard, Niels, 1996. "Discard Behavior, Highgrading And Regulation: The Case Of The Greenland Shrimp Fishery," Marine Resource Economics, Marine Resources Foundation, vol. 11(4). [Downloadable!]
Matthew A. Turner, 1995. "Value-based ITQ's," Working Papers mturner-95-03, University of Toronto, Department of Economics. [Downloadable!]
Other versions:
- Turner, Matthew A., 1996. "Value-Based Itq'S," Marine Resource Economics, Marine Resources Foundation, vol. 11(2). [Downloadable!]
Matthew A. Turner, 1998. "Optimal quota programs," Working Papers mturner-98-01, University of Toronto, Department of Economics. [Downloadable!]

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