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The Impacts of Marine Reserves on Limited-Entry Fisheries

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  • Sanchirico, James N.
  • Wilen, James E.

Abstract

We utilize a spatial bioeconomic model to investigate the impacts of creating reserves on limited-entry fisheries. We find that reserve creation can produce win-win situations where aggregate biomass and the common license (lease) price increase. These situations arise in biological systems where dispersal processes are prevalent and the fishery prior to reserve creation is operating at effort levels in a neighborhood of open-access levels. We also illustrate that using strictly biological criteria for siting reserves (e.g., setting aside the most biological productive areas) will likely induce the most vociferous objections from the fishing industry. In general, we find that the dispersal rate and the degree the patches are connected play a significant role on the net impacts on the fishing sector.

Suggested Citation

  • Sanchirico, James N. & Wilen, James E., 2000. "The Impacts of Marine Reserves on Limited-Entry Fisheries," Discussion Papers 10487, Resources for the Future.
    • Handle: RePEc:ags:rffdps:10487
    DOI: 10.22004/ag.econ.10487
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    References listed on IDEAS

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    1. Smith, Vernon L, 1971. "Economics of Production from Natural Resources: Reply," American Economic Review, American Economic Association, vol. 61(3), pages 488-491, June.
    2. Sanchirico, James N., 2000. "Marine Protected Areas as Fishery Policy: A Discussion of Potential Costs and Benefits," Discussion Papers 10728, Resources for the Future.
    3. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Palgrave Macmillan Books, in: Chennat Gopalakrishnan (ed.), Classic Papers in Natural Resource Economics, chapter 9, pages 178-203, Palgrave Macmillan.
    4. Sanchirico, James N. & Wilen, James E., 1998. "Marine Reserves: Is There a Free Lunch?," Discussion Papers 10715, Resources for the Future.
    5. Sanchirico, James N. & Wilen, James E., 1999. "Bioeconomics of Spatial Exploitation in a Patchy Environment," Journal of Environmental Economics and Management, Elsevier, vol. 37(2), pages 129-150, March.
    6. Boersma, P. Dee & Parrish, Julia K., 1999. "Limiting abuse: marine protected areas, a limited solution," Ecological Economics, Elsevier, vol. 31(2), pages 287-304, November.
    7. Farrow, Scott, 1996. "Marine protected areas: emerging economics," Marine Policy, Elsevier, vol. 20(6), pages 439-446, November.
    8. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62(2), pages 124-124.
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    Citations

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    Cited by:

    1. Greenville, Jared W. & MacAulay, T. Gordon, 2007. "Bioeconomic analysis of protected area use in fisheries management," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(4), pages 1-22.
    2. Armstrong, Claire W. & Skonhoft, Anders, 2006. "Marine reserves: A bio-economic model with asymmetric density dependent migration," Ecological Economics, Elsevier, vol. 57(3), pages 466-476, May.
    3. R. Quentin Grafton & Pham Van Ha & Tom Kompas, 2004. "Saving the Seas: The Economic Justification for Marine Reserves," Economics and Environment Network Working Papers 0402, Australian National University, Economics and Environment Network.
    4. Armstrong, Claire W., 2007. "A note on the ecological-economic modelling of marine reserves in fisheries," Ecological Economics, Elsevier, vol. 62(2), pages 242-250, April.
    5. Sterner, Thomas, 2007. "Unobserved diversity, depletion and irreversibility The importance of subpopulations for management of cod stocks," Ecological Economics, Elsevier, vol. 61(2-3), pages 566-574, March.
    6. Greenville, Jared W. & MacAulay, T. Gordon, 2006. "Protected areas in fisheries: a two-patch, two-species model," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(2), pages 1-20, June.
    7. Greenville, Jared W. & MacAulay, T. Gordon, 2006. "A Bioeconomic Analysis of Protected Area use in Fisheries Management," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 139738, Australian Agricultural and Resource Economics Society.
    8. Greenville, Jared W. & MacAulay, T. Gordon, 2006. "A Bioeconomic Analysis of Protected Area use in Fisheries Management," 2006 Annual meeting, July 23-26, Long Beach, CA 21469, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Albers, Heidi J. & Fischer, Carolyn & Sanchirico, James N., 2010. "Invasive species management in a spatially heterogeneous world: Effects of uniform policies," Resource and Energy Economics, Elsevier, vol. 32(4), pages 483-499, November.
    10. Schnier, Kurt Erik, 2005. "Biological "hot spots" and their effect on optimal bioeconomic marine reserve formation," Ecological Economics, Elsevier, vol. 52(4), pages 453-468, March.
    11. Jared Greenville & T. Gordon MacAulay, 2006. "Protected areas in fisheries: a two-patch, two-species model ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(2), pages 207-226, June.
    12. Greenville, Jared W. & MacAulay, T. Gordon, 2004. "A bioeconomic model of a marine park," 2004 Conference (48th), February 11-13, 2004, Melbourne, Australia 58451, Australian Agricultural and Resource Economics Society.
    13. Mykoniatis, Nikolaos & Ready, Richard C., "undated". "Optimal Oyster Management in Chesapeake Bay Incorporating Sanctuaries, Reserves, Aquaculture and Externalities," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124613, Agricultural and Applied Economics Association.
    14. Schnier, Kurt E. & Anderson, Christopher M., 2006. "Decision making in patchy resource environments: Spatial misperception of bioeconomic models," Journal of Economic Behavior & Organization, Elsevier, vol. 61(2), pages 234-254, October.
    15. Kaffine Daniel T & Costello Christopher, 2011. "Unitization of Spatially Connected Renewable Resources," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-31, March.
    16. Holland, Dan & Schnier, Kurt E., 2006. "Individual habitat quotas for fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 72-92, January.
    17. Ola Flaaten & Einar Mjølhus, 2010. "Nature Reserves as a Bioeconomic Management Tool: A Simplified Modelling Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(1), pages 125-148, September.
    18. Polasky, Stephen & Costello, Christopher & Solow, Andrew, 2005. "The Economics of Biodiversity," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 3, chapter 29, pages 1517-1560, Elsevier.

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    Keywords

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    JEL classification:

    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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