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The Benefits of Rationalization: The Case of the American Lobster Fishery

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Author Info
Steinback, Scott R.
Allen, Richard B.
Thunberg, Eric
Abstract

The American lobster (Homarus americanus) fishery is currently the most valuable fishery on the Atlantic coasts of both the USA and Canada based on ex-vessel value. Lobster conservation policies have traditionally focused on technical restrictions such as minimum size requirements, v-notching, and a prohibition on taking egg-bearing females to protect the resource, rather than direct controls on fishing effort or catch. However, in 2005 the Atlantic States Marine Fisheries Commission adopted a plan for the southern New England lobster management area (Area 2) that establishes a structure for limiting the number of license holders and the number of traps each lobsterman can have in the water. In this article, a bio-economic modeling exercise is employed to examine the biological and economic impacts of reductions to the level of fishing effort in a fishery that is modeled to represent the full-time lobster fishing fleet in Area 2. Model results show that a reduction in fishing effort has the potential to: (i) improve the sustainability characteristics of the lobster resource and, in contrast to popular belief, (ii) actually stimulate economic growth in the coastal economy.

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File URL: http://purl.umn.edu/49174
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Publisher Info
Article provided by Marine Resources Foundation in its journal Marine Resource Economics.

Volume (Year): 23 (2008)
Issue (Month): 1 ()
Pages:
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Handle: RePEc:ags:mareec:49174

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Related research
Keywords: Bio-economic simulation model; economic efficiency; lobster; rationalization; regional input-output model; Environmental Economics and Policy; Productivity Analysis; C15; C67; Q22;

References listed on IDEAS
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  1. Homans, Frances R. & Wilen, James E., 1997. "A Model of Regulated Open Access Resource Use," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 1-21, January. [Downloadable!] (restricted)
  2. Anthony Scott, 1955. "The Fishery: The Objectives of Sole Ownership," Journal of Political Economy, University of Chicago Press, vol. 63, pages 116. [Downloadable!] (restricted)
  3. Petter Johnsen, Jahn, 2005. "The evolution of the "harvest machinery": why capture capacity has continued to expand in Norwegian fisheries," Marine Policy, Elsevier, vol. 29(6), pages 481-493, November. [Downloadable!] (restricted)
  4. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62, pages 124. [Downloadable!] (restricted)
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