Optimal Fishery Management with Regime Shifts: An Assessment of Harvesting Strategies
Abstract This paper compares outcomes from informed and uninformed harvesting strategies for a fish stock with switching dynamics where the probability of switching is influenced by climate. Using data on sea-surface temperature anomalies, the impacts of climate on the conservation and the welfare that can be extracted from the stock are investigated. Results indicate that an informed management policy leads to stock biomass and resource rents that are up to 2.7 and 2 times higher, respectively, than under an uninformed policy. Also, the fishery is open 54 % longer under the informed policy. The magnitude of these effects depends on the choice of the discount rate indicating that when the future is highly discounted gains from the informed policy dissipate.
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Volume (Year): 64 (2016)
Issue (Month): 3 (July)
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