IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v169y2020ics0921800919301429.html
   My bibliography  Save this article

Measuring the value of ecosystem-based fishery management using financial portfolio theory

Author

Listed:
  • Carmona, Itsaso
  • Ansuategi, Alberto
  • Chamorro, José Manuel
  • Escapa, Marta
  • Gallastegui, María Carmen
  • Murillas, Arantza
  • Prellezo, Raúl

Abstract

We highlight the potential benefits of adopting Ecosystem-based Fishery Management (EBFM). We compare the EBFM implementation with the more traditional single-stock approach. We show the contribution of the portfolio theory to the EBFM, which can be achieved by selecting an optimal portfolio to maximise the average revenues and minimise the variance. We use this approach to construct two frontiers: the ecosystem efficient frontier, which considers stock interactions (the variance-covariance matrix), and the stock efficient frontier, only considering individual stock variances.

Suggested Citation

  • Carmona, Itsaso & Ansuategi, Alberto & Chamorro, José Manuel & Escapa, Marta & Gallastegui, María Carmen & Murillas, Arantza & Prellezo, Raúl, 2020. "Measuring the value of ecosystem-based fishery management using financial portfolio theory," Ecological Economics, Elsevier, vol. 169(C).
    • Handle: RePEc:eee:ecolec:v:169:y:2020:i:c:s0921800919301429
    DOI: 10.1016/j.ecolecon.2019.106431
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800919301429
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ecolecon.2019.106431?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Le Floc’h, Pascal & Murillas, Arantza & Aranda, Martin & Daurès, Fabienne & Fitzpatrick, Mike & Guyader, Olivier & Hatcher, Aaron & Macher, Claire & Marchal, Paul, 2015. "The regional management of fisheries in European Western Waters," Marine Policy, Elsevier, vol. 51(C), pages 375-384.
    2. Curtin, Richard & Prellezo, Raúl, 2010. "Understanding marine ecosystem based management: A literature review," Marine Policy, Elsevier, vol. 34(5), pages 821-830, September.
    3. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Palgrave Macmillan Books, in: Chennat Gopalakrishnan (ed.), Classic Papers in Natural Resource Economics, chapter 9, pages 178-203, Palgrave Macmillan.
    4. Hoefnagel, Ellen & de Vos, Birgit & Buisman, Erik, 2015. "Quota swapping, relative stability, and transparency," Marine Policy, Elsevier, vol. 57(C), pages 111-119.
    5. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
    6. Sanchirico, James N. & Smith, Martin D. & Lipton, Douglas W., 2008. "An empirical approach to ecosystem-based fishery management," Ecological Economics, Elsevier, vol. 64(3), pages 586-596, January.
    7. Knoke, Thomas & Paul, Carola & Härtl, Fabian & Castro, Luz Maria & Calvas, Baltazar & Hildebrandt, Patrick, 2015. "Optimizing agricultural land-use portfolios with scarce data—A non-stochastic model," Ecological Economics, Elsevier, vol. 120(C), pages 250-259.
    8. Anthony Scott, 1955. "The Fishery: The Objectives of Sole Ownership," Journal of Political Economy, University of Chicago Press, vol. 63, pages 116-116.
    9. Alvarez, Sergio & Larkin, Sherry L. & Ropicki, Andrew, 2017. "Optimizing provision of ecosystem services using modern portfolio theory," Ecosystem Services, Elsevier, vol. 27(PA), pages 25-37.
    10. 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 124-124.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oleg S. Sukharev, 2020. "Portfolio Theory in Solving the Problem Structural Choice," JRFM, MDPI, vol. 13(9), pages 1-21, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nielsen, Max & Ravensbeck, Lars & Nielsen, Rasmus, 2014. "Green growth in fisheries," Marine Policy, Elsevier, vol. 46(C), pages 43-52.
    2. Asche, Frank & Smith, Martin D., 2010. "Trade and fisheries: Key issues for the World Trade Organization," WTO Staff Working Papers ERSD-2010-03, World Trade Organization (WTO), Economic Research and Statistics Division.
    3. McCloskey Deirdre Nansen, 2018. "The Two Movements in Economic Thought, 1700–2000: Empty Economic Boxes Revisited," Man and the Economy, De Gruyter, vol. 5(2), pages 1-20, December.
    4. Catherine J. Morrison Paul & Ronald G. Felthoven & Marcelo de O. Torres, 2010. "Productive performance in fisheries: modeling, measurement, and management," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(3), pages 343-360, July.
    5. Pies, Ingo, 2012. "Optimierung versus Koordinierung: Zur ordonomischen Klärung des wirtschaftsethischen Problems," Discussion Papers 2012-21, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.
    6. Behringer, Stefan & Upmann, Thorsten, 2014. "Optimal harvesting of a spatial renewable resource," Journal of Economic Dynamics and Control, Elsevier, vol. 42(C), pages 105-120.
    7. Geoffrey Fishburn & Murray C. Kemp, 2014. "The Gain from International Trade in Pool Goods and Private Goods," Review of International Economics, Wiley Blackwell, vol. 22(1), pages 167-169, February.
    8. Brander, James A. & Scott Taylor, M., 1998. "Open access renewable resources: Trade and trade policy in a two-country model," Journal of International Economics, Elsevier, vol. 44(2), pages 181-209, April.
    9. Bruno Drouot, 2012. "Les facteurs explicatifs de la dépendance économique des patrons pêcheurs à une ressource naturelle : le cas de la pêcherie de bar commun en France," Post-Print hal-01870830, HAL.
    10. Grafton, R. Quentin & Kompas, Tom & Chu, Long & Che, Nhu, 2010. "Maximum economic yield," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(3), pages 1-8.
    11. Gardner Brown, 2000. "Renewable Natural Resource Management and Use Without Markets," Working Papers 0025, University of Washington, Department of Economics.
    12. Catherine Benjamin & Hervé Guyomard, 1996. "Analyse des modes de régulation publique des pêcheries : applicabilité d'un système de quotas individuels transférables à l'Union européenne," Working Papers hal-01897091, HAL.
    13. Gissurarson Hannes H., 2000. "When Ideas Conspire with Circumstances," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 10(2-3), pages 1-30, June.
    14. López, Ramón & Schiff, Maurice, 2013. "Interactive dynamics between natural and man-made assets: The impact of external shocks," Journal of Development Economics, Elsevier, vol. 104(C), pages 1-15.
    15. James A. Brander & M. Scott Taylor, 1997. "International Trade and Open-Access Renewable Resources: The Small Open Economy Case," Canadian Journal of Economics, Canadian Economics Association, vol. 30(3), pages 526-552, August.
    16. Gordon Munro & U. Sumaila, 2015. "On the Contributions of Colin Clark to Fisheries Economics," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 61(1), pages 1-17, May.
    17. Bellanger, Manuel & Fonner, Robert & Holland, Daniel S. & Libecap, Gary D. & Lipton, Douglas W. & Scemama, Pierre & Speir, Cameron & Thébaud, Olivier, 2021. "Cross-sectoral externalities related to natural resources and ecosystem services," Ecological Economics, Elsevier, vol. 184(C).
    18. Van Cayseele Patrick & Reynaerts Jo, 2011. "Complementary Platforms," Review of Network Economics, De Gruyter, vol. 10(1), pages 1-33, March.
    19. Darcy W E Allen, 2020. "When Entrepreneurs Meet:The Collective Governance of New Ideas," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number q0269, January.
    20. Manuel Pacheco Coelho, 2011. "“On Rents of Fishing Grounds” Revisited," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 1(2), pages 1-74.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:169:y:2020:i:c:s0921800919301429. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.