Evaluating the New Zealand Individual Transferable Quota Market for Fisheries Management
AbstractThe New Zealand ITQ system is a dynamic institution that has had many refinements since its inception more than 15 years ago. Nonetheless, the basic tenets of the system - setting a total allowable catch and leaving the market to determine the most profitable allocation of fishing effort - have remained intact. This paper assesses the New Zealand system to identify areas of success and/or possible improvement or expansion within it. The reasons for doing so are to highlight beneficial features and to identify features of the New Zealand ITQ system that are relevant to other potential tradable permit markets. Beneficial features include simple standardized rules for quota definition and trading across species and areas; very few restrictions on quota trading and holding; relative stability in the rules over time; and low levels of government involvement in the trading process. We find evidence that supports the assertion that fishers behave in a reasonably rational fashion and that the markets are relatively efficient. We do not find major changes in participation in these fisheries as a result of the system. We find evidence that suggests that the ITQ system is improving the profitability of fisheries in New Zealand. In general the evidence thus far suggests that the market is operating in a reasonably efficient manner and is providing significant economic gains. These factors suggest that New Zealand would want to have non-economic justifications for any significant changes to the system.
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 EconWPA in its series Others with number 0309004.
Length: 21 pages
Date of creation: 03 Sep 2003
Date of revision:
Note: Type of Document - PDF; prepared on PC; to print on HP; pages: 21 ; figures: no
Contact details of provider:
Web page: http://184.108.40.206
tradeable permits; quota; fisheries;
Other versions of this item:
- Suzi Kerr & Richard G. Newell & James N. Sanchirico, 2003. "Evaluating the New Zealand Individual Transferable Quota Market for Fisheries Management," Working Papers 03_02, Motu Economic and Public Policy Research.
- D49 - Microeconomics - - Market Structure and Pricing - - - Other
- Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
- Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
This paper has been announced in the following NEP Reports:
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.:
- S. Baranzoni & P. Bianchi & L. Lambertini, 2000. "Market Structure," Working Papers 368, Dipartimento Scienze Economiche, Universita' di Bologna.
- Casey, Keith E. & Dewees, Christopher M. & Turris, Bruce R. & Wilen, James E., 1995. "The Effects of Individual Vessel Quotas in the British Columbia Halibut Fishery," Marine Resource Economics, Marine Resources Foundation, vol. 10(3).
- Grafton, R Quentin & Squires, Dale & Fox, Kevin J, 2000.
"Private Property and Economic Efficiency: A Study of a Common-Pool Resource,"
Journal of Law and Economics,
University of Chicago Press, vol. 43(2), pages 679-713, October.
- Grafton, R.Q. & Squires, D. & Fox, K.J., 1998. "Private Property and Economic Efficiency: A Study of a Common-Pool Resource," Working Papers 9804e, University of Ottawa, Department of Economics.
- Batstone, C J & Sharp, B M H, 1999. "New Zealand's quota management system: the first ten years," Marine Policy, Elsevier, vol. 23(2), pages 177-190, March.
- Grimes, Arthur, 2005.
"Regional and industry cycles in Australasia: Implications for a common currency,"
Journal of Asian Economics,
Elsevier, vol. 16(3), pages 380-397, June.
- Arthur Grimes, 2005. "Regional and Industry Cycles in Australasia: Implications for a Common Currency," Working Papers 05_04, Motu Economic and Public Policy Research.
- Arthur Grimes, 2005. "Regional and Industry Cycles in Australasia: Implications for a Common Currency," Macroeconomics 0509020, EconWPA.
- Arthur Grimes, 2005. "Intra & Inter-Regional Industry Shocks: A New Metric with an Application to Australasian Currency Union," Macroeconomics 0509019, EconWPA.
- David C. Maré, 2005.
"Indirect Effects of Active Labour Market Policies,"
05_01, Motu Economic and Public Policy Research.
- David C. Maré & Michelle Poland, 2005.
"Defining Geographic Communities,"
05_09, Motu Economic and Public Policy Research.
- Kelly Lock & Stefan Leslie, 2007. "New Zealand's Quota Management System: A History of the First 20 Years," Working Papers 07_02, Motu Economic and Public Policy Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.