Global Warming and International Fishery Management: Does Anticipation of the Temperature Change Matter?
AbstractThis paper investigates the effects of climate-induced rising of ocean temperature on the optimal fishing policies in a two players? non-cooperative game setting. We compare reactive management, under which the manager does not believe in or know about temperature trend, with proactive management where the manager considers the future temperature change in his decisions. We assume that the fish stock is initially solely owned by country one. As temperature rises, the stock starts spilling over to the zone of the other country and eventually becomes under its sole ownership. A stochastic dynamic programming model is developed to identify Nash management strategies for the two players. The main findings are that anticipation of temperature trend induces notable strategic interactions between two players. Knowing that it is gradually loosing the stock, country one is often harvesting more aggressively, whereas the country that is increasing its ownership harvests more conservatively. Compared to reactive management, proactive management benefits both parties in terms of their cumulative pay-offs; the biological stock is also larger much of the time. In most cases, the difference between two management regimes is subtle, but when the stock is slow-growing and highly schooling, proactive management may save it from collapse.
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 Department of Business and Management Science, Norwegian School of Economics in its series Discussion Papers with number 2010/19.
Length: 19 pages
Date of creation: 30 Dec 2010
Date of revision:
Contact details of provider:
Postal: NHH, Department of Business and Management Science, Helleveien 30, N-5045 Bergen, Norway
Phone: +47 55 95 92 93
Fax: +47 55 95 96 50
Web page: http://www.nhh.no/en/research-faculty/department-of-business-and-management-science.aspx
More information through EDIRC
Climate change; Nash game; stochastic dynamic programming; optimal fishing policy;
Find related papers by JEL classification:
- Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stein Fossen).
If references are entirely missing, you can add them using this form.