IDEAS home Printed from https://ideas.repec.org/a/uwp/landec/v85y2009i3p470-484.html
   My bibliography  Save this article

The Effects of ITQ Management on Fishermen’s Welfare When the Processing Sector Is Imperfectly Competitive

Author

Listed:
  • David M. McEvoy
  • Sylvia Brandt
  • Sven Anders

Abstract

In this paper we use a general model of imperfect competition to predict welfare changes within an open-access fishery after it transitions to individual transferable quota (ITQ) management. Although related research has explored the effects of market power in the harvesting sector on ITQ performance, none has considered the implications of an imperfectly competitive processing sector. Addressing this question, we find that although fishermen should expect to gain from ITQs under perfect competition, they may suffer welfare losses if the processing sector is imperfectly competitive.

Suggested Citation

  • David M. McEvoy & Sylvia Brandt & Sven Anders, 2009. "The Effects of ITQ Management on Fishermen’s Welfare When the Processing Sector Is Imperfectly Competitive," Land Economics, University of Wisconsin Press, vol. 85(3), pages 470-484.
  • Handle: RePEc:uwp:landec:v:85:y:2009:i:3:p:470-484
    as

    Download full text from publisher

    File URL: http://le.uwpress.org/cgi/reprint/85/3/470
    Download Restriction: A subscripton is required to access pdf files. Pay per article is available.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Brandt, Sylvia & McEvoy, David, 2006. "Distributional effects of property rights: Transitions in the Atlantic Herring fishery," Marine Policy, Elsevier, vol. 30(6), pages 659-670, November.
    2. Squires, Dale & Grafton, R. Quentin & Alam, Mohammed Ferdous & Omar, Ishak Haji, 2003. "Technical efficiency in the Malaysian gill net artisanal fishery," Environment and Development Economics, Cambridge University Press, vol. 8(03), pages 481-504, July.
    3. Richard J. Sexton, 2000. "Industrialization and Consolidation in the U.S. Food Sector: Implications for Competition and Welfare," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1087-1104.
    4. Homans, Frances R. & Wilen, James E., 2005. "Markets and rent dissipation in regulated open access fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 49(2), pages 381-404, March.
    5. Heaps, Terry, 2003. "The effects on welfare of the imposition of individual transferable quotas on a heterogeneous fishing fleet," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 557-576, November.
    6. Anderson, Lee G., 1991. "A note on market power in ITQ fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 21(3), pages 291-296, November.
    7. Terrebonne R. Peter, 1995. "Property Rights and Entrepreneurial Income in Commercial Fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 28(1), pages 68-82, January.
    8. Steve McCorriston, 2002. "Why should imperfect competition matter to agricultural economists?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(3), pages 349-371, July.
    9. Adesoji Adelaja & Julia Menzo & Bonnie McCay, 1998. "Market Power, Industrial Organization and Tradeable Quotas," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 13(5), pages 589-601, October.
    10. Joyce J. Wann & Sexton Richard J., 1992. "Imperfect Competition in Multiproduct Food Industries with Application to Pear Processing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(4), pages 980-990.
    11. Shalit, Haim & Yitzhaki, Shlomo, 2002. "Estimating Beta," Review of Quantitative Finance and Accounting, Springer, vol. 18(2), pages 95-118, March.
    12. C. R. Dryburgh & C. J. Doyle, 1995. "Distribution Of Research Gains Under Different Market Structures: The Impact Of Technological Change Within The Uk Dairy Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(1), pages 80-96.
    13. Quinn Weninger, 1998. "Assessing Efficiency Gains from Individual Transferable Quotas: An Application to the Mid-Atlantic Surf Clam and Ocean Quahog Fishery," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(4), pages 750-764.
    14. Oczkowski, Edward, 1988. "A Theory of Market Quantity Controls: The Use of Disequilibrium and Bargaining Theories," Australian Economic Papers, Wiley Blackwell, vol. 27(51), pages 285-297, December.
    15. Mingxia Zhang, 1997. "The Effects of Imperfect Competition on the Size and Distribution of Research Benefits," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1252-1265.
    16. Shu-Yu Huang & Richard J. Sexton, 1996. "Measuring Returns to an Innovation in an Imperfectly Competitive Market: Application to Mechanical Harvesting of Processing Tomatoes in Taiwan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 558-571.
    17. Acheson, James M, 1985. "The Maine Lobster Market: Between Market and Hierarchy," Journal of Law, Economics, and Organization, Oxford University Press, vol. 1(2), pages 385-398, Fall.
    18. Jean-Philippe Gervais & Stephen Devadoss, 2006. "Estimating bargaining strengths of Canadian chicken producers and processors using a bilateral monopoly framework," Agribusiness, John Wiley & Sons, Ltd., vol. 22(2), pages 159-173.
    19. Zhigang Chen & Rebecca Lent, 1992. "Supply Analysis in an Oligopsony Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(4), pages 973-979.
    20. Weninger, Quinn & Grafton, Quinten R. & Kirkley, James E. & Squires, Dale, 2000. "A Guide to Economic Evaluation of Individual Transferable Quota Fisheries," Staff General Research Papers Archive 10574, Iowa State University, Department of Economics.
    21. Richard J. Sexton & Mingxia Zhang, 1996. "A Model of Price Determination for Fresh Produce with Application to California Iceberg Lettuce," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 924-934.
    22. Scott C. Matulich & Murat Sever, 1999. "Reconsidering the Initial Allocation of ITQs: The Search for a Pareto-Safe Allocation between Fishing and Processing Sectors," Land Economics, University of Wisconsin Press, vol. 75(2), pages 203-219.
    23. Rafi Melnick & Haim Shalit, 1985. "Estimating the Market for Tomatoes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 573-582.
    24. Boyce, John R., 2004. "Instrument choice in a fishery," Journal of Environmental Economics and Management, Elsevier, vol. 47(1), pages 183-206, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Blomquist, Johan & Hammarlund, Cecilia & Waldo, Staffan, 2013. "Time for Fishing: Bargaining Power in the Baltic Swedish Cod Fishery," Working Papers 2013:35, Lund University, Department of Economics.
    2. Mukherjee, Zinnia, 2015. "An economic approach to understanding the international transfer of bycatch from unilateral bycatch reduction policies," Marine Policy, Elsevier, vol. 51(C), pages 190-195.

    More about this item

    JEL classification:

    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwp:landec:v:85:y:2009:i:3:p:470-484. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://le.uwpress.org/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.