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Restoring a Fish Stock: A Dynamic Bankruptcy Problem

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  • Anders Skonhoft

    ()
    (Department of Economics, Norwegian University of Science and Technology)

  • Elena Inarra

    ()
    (Department of Economics, University of the Basque Country, Spain)

Abstract

Total Allowable Catch (TAC) regulating schemes have been introduced in most fisheries. TAC distribution following the Proportional Rule, based on historical catches, implies that harvesters or vessel groups which have captured more in the past and contributed to overfishing are getting larger quotas than groups that have contributed less to overfishing. In contrast to this rule a more egalitarian rule, the Constrained Equal Award Rule, is proposed for distributing the TAC. Contingent upon the fishing techniques used by the harvesters, it is demonstrated how the fish stock recovery period, harvest and profitability may vary according to these two rules.

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File URL: http://www.svt.ntnu.no/iso/WP/2007/2Bankruptcy0307.pdf
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Bibliographic Info

Paper provided by Department of Economics, Norwegian University of Science and Technology in its series Working Paper Series with number 8507.

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Length: 25 pages
Date of creation: 24 Apr 2007
Date of revision:
Handle: RePEc:nst:samfok:8507

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