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Risk versus economic performance in a mixed fishery

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  • Gourguet, S.
  • Thébaud, O.
  • Dichmont, C.
  • Jennings, S.
  • Little, L.R.
  • Pascoe, S.
  • Deng, R.A.
  • Doyen, L.

Abstract

Balancing bio-economic risks and high profit expectations is often a major concern in fisheries management. We examine this trade-off in the context of the Australian Northern Prawn Fishery (NPF). The fishery derives its revenue from different prawn species with different dynamics and recruitment processes. A multi-species bio-economic and stochastic model is used to examine the trade-offs between mean profitability of the fishery and its variance, under a range of economic scenarios, fishing capacities and distributions of fishing effort across the various sub-fisheries that comprise the NPF. Simulation results show that the current fishing strategy diversifying catch across sub-components of the fishery entails a compromise between expected performance and risk. Furthermore, given the current economic conditions, increases in fleet size would improve the expected economic performance of the fishery, but at the cost of increased variability of this performance.

Suggested Citation

  • Gourguet, S. & Thébaud, O. & Dichmont, C. & Jennings, S. & Little, L.R. & Pascoe, S. & Deng, R.A. & Doyen, L., 2014. "Risk versus economic performance in a mixed fishery," Ecological Economics, Elsevier, vol. 99(C), pages 110-120.
    • Handle: RePEc:eee:ecolec:v:99:y:2014:i:c:p:110-120
    DOI: 10.1016/j.ecolecon.2014.01.013
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    Cited by:

    1. Ni, Yuanming & Steinshamn, Stein I. & Kvamsdal, Sturla F., 2022. "Negative shocks in an age-structured bioeconomic model and how to deal with them," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 15-30.
    2. Tromeur, Eric & Doyen, Luc & Tarizzo, Violaine & Little, L. Richard & Jennings, Sarah & Thébaud, Olivier, 2021. "Risk averse policies foster bio-economic sustainability in mixed fisheries," Ecological Economics, Elsevier, vol. 190(C).
    3. N. Quérou & A. Tomini, 2018. "Marine Ecosystem Considerations and Second-Best Management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(2), pages 381-401, June.
    4. Violaine Tarizzo & Eric Tromeur & Olivier Thébaud & Richard Little & Sarah Jennings & Luc Doyen, 2018. "Risk averse policies foster bio-economic sustainability in mixed fisheries," Cahiers du GREThA (2007-2019) 2018-07, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    5. Alvarez, Sergio & Larkin, Sherry L. & Ropicki, Andrew, 2017. "Optimizing provision of ecosystem services using modern portfolio theory," Ecosystem Services, Elsevier, vol. 27(PA), pages 25-37.
    6. Vinent, Orencio Duran & Johnston, Robert J. & Kirwan, Matthew L. & Leroux, Anke D. & Martin, Vance L., 2019. "Coastal dynamics and adaptation to uncertain sea level rise: Optimal portfolios for salt marsh migration," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    7. Dentoni, Domenico & Klerkx, Laurens, 2015. "Co-managing public research in Australian fisheries through convergence–divergence processes," Marine Policy, Elsevier, vol. 60(C), pages 259-271.

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