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Bioeconomic model of spatial fishery management in developing countries

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Author Info

  • Akpalu, Wisdom

    ()
    (Department of History, Economics and Politics, Farmingdale State College, State University of New York)

  • Vondolia, Godwin K.

    ()
    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

Fishers in developing countries do not have the resources to acquire advanced technologies to exploit offshore fish stocks. As a result, the United Nations Convention on the Law of the Sea requires countries to sign partnership agreements with distant water fishing nations (DWFNs) to exploit offshore stocks. However, for migratory stocks, the offshore may serve as a natural marine reserve (i.e., a source) to the inshore (i.e., sink); hence these partnership agreements generate spatial externality. In this paper, we present a bioeconomic model in which a social planner uses a landing tax (ad valorem tax) to internalize this spatial externality. We found that the tax must reflect the biological connectivity between the two patches, intrinsic growth rate, the price of fish, cost per unit effort and social discount rate. The results are empirically illustrated using data on Ghana.

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File URL: http://gupea.ub.gu.se/handle/2077/24667
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 490.

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Length: 33 pages
Date of creation: 24 Feb 2011
Date of revision:
Handle: RePEc:hhs:gunwpe:0490

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Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Keywords: Spatial fishery management; ad valorem tax; exclusive economic zone; developing countries;

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  1. Akpalu, Wisdom, 2009. "Economics of biodiversity and sustainable fisheries management," Ecological Economics, Elsevier, vol. 68(10), pages 2729-2733, August.
  2. Sterner, Thomas, 2007. "Unobserved diversity, depletion and irreversibility The importance of subpopulations for management of cod stocks," Ecological Economics, Elsevier, vol. 61(2-3), pages 566-574, March.
  3. Akpalu, Wisdom & Parks, Peter J., 2007. "Natural resource use conflict: gold mining in tropical rainforest in Ghana," Environment and Development Economics, Cambridge University Press, vol. 12(01), pages 55-72, February.
  4. Frank Jensen & Niels Vestergaard, 2003. "Prices versus Quantities in Fisheries Models," Land Economics, University of Wisconsin Press, vol. 79(3), pages 415-425.
  5. Perry, R. Ian & Sumaila, U. Rashid, 2007. "Marine ecosystem variability and human community responses: The example of Ghana, West Africa," Marine Policy, Elsevier, vol. 31(2), pages 125-134, March.
  6. Doherty, Neil A & Posey, Lisa Lipowski, 1997. "Availability Crises in Insurance Markets: Optimal Contracts with Asymmetric Information and Capacity Constraints," Journal of Risk and Uncertainty, Springer, vol. 15(1), pages 55-80, October.
  7. Weitzman, Martin L., 2002. "Landing Fees vs Harvest Quotas with Uncertain Fish Stocks," Journal of Environmental Economics and Management, Elsevier, vol. 43(2), pages 325-338, March.
  8. Sanchirico, James N. & Wilen, James E., 1999. "Bioeconomics of Spatial Exploitation in a Patchy Environment," Journal of Environmental Economics and Management, Elsevier, vol. 37(2), pages 129-150, March.
  9. Bischi, Gian Italo & Lamantia, Fabio, 2007. "Harvesting dynamics in protected and unprotected areas," Journal of Economic Behavior & Organization, Elsevier, vol. 62(3), pages 348-370, March.
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Cited by:
  1. Quérou, N. & Tomini, A., 2013. "Managing interacting species in unassessed fisheries," Ecological Economics, Elsevier, vol. 93(C), pages 192-201.
  2. Akpalu, Wisdom, 2013. "Foreign aid and sustainable fisheries management in sub-Saharan Africa," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).

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