High-Grading in a Quota-Regulated Fishery, with Empirical Evidence from the Icelandic Cod Fishery
AbstractFishers in quota-regulated fisheries find it to their advantage to discard less valuable fish at sea to increase the value of their catch. A theoretical model describing the high-grading behavior of fishers is presented, and an empirical model is derived as well as a testing strategy to test for high-grading and to estimate the discarded amount of each grade. The model is applied to data for the Icelandic quota regulated cod fishery during the period September 1998 to June 2001. The results indicate that highgrading occurs in the Icelandic cod fishery for both long-line and net vessels. However, the discard rates are small, and the results clearly suggest that the ban on discards in Iceland has effectively dealt with high-grading. The estimated discard rates are consistent with existing estimates of high-grading for the same types of vessel in the same fishery. This suggests that the modeling of discarding decisions based purely on incentives is a useful alternative to classical biometric methods.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark with number 24722.
Date of creation: 2005
Date of revision:
ITQ's; highgrading; empirical estimation; Resource /Energy Economics and Policy; Q21; Q22; C12;
Find related papers by JEL classification:
- Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
- Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- W. Erwin Diewert & T.J. Wales, 1989.
"Flexible Functional Forms and Global Curvature Conditions,"
NBER Technical Working Papers
0040, National Bureau of Economic Research, Inc.
- Diewert, Walter E & Wales, Terence J, 1987. "Flexible Functional Forms and Global Curvature Conditions," Econometrica, Econometric Society, vol. 55(1), pages 43-68, January.
- Turner, Matthew A., 1997. "Quota-Induced Discarding in Heterogeneous Fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 33(2), pages 186-195, June.
- Anderson, Lee G., 1994. "An Economic Analysis of Highgrading in ITQ Fisheries Regulation Programs," Marine Resource Economics, Marine Resources Foundation, vol. 9(3).
- Anderson, Lee G., 1994. "Thalassorama: A Note on the Economics of Discards," Marine Resource Economics, Marine Resources Foundation, vol. 9(2).
- Arnason, Ragnar, 1994. "On Catch Discarding in Fisheries," Marine Resource Economics, Marine Resources Foundation, vol. 9(3).
- Nerlove, Marc & Bessler, David A., 2001. "Expectations, information and dynamics," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 3, pages 155-206 Elsevier.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.