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Risk versus Economic Performance in a Mixed Fishery

Author

Listed:
  • Luc Doyen

    (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)

  • R. A Deng
  • C. M. Dichmont
  • Sophie Gourguet

    (AMURE - Aménagement des Usages des Ressources et des Espaces marins et littoraux - Centre de droit et d'économie de la mer - CNRS - Centre National de la Recherche Scientifique - UBO - Université de Brest - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - IUEM - Institut Universitaire Européen de la Mer - IRD - Institut de Recherche pour le Développement - INSU - CNRS - Institut national des sciences de l'Univers - UBO - Université de Brest - CNRS - Centre National de la Recherche Scientifique)

  • S. Jennings
  • L. Richard Little

    (Marine and Atmospheric Research - Marine and Atmospheric Research - CSIRO - Commonwealth Scientific and Industrial Research Organisation [Canberra])

  • S. Pascoe
  • Olivier Thébaud

    (AMURE - Aménagement des Usages des Ressources et des Espaces marins et littoraux - Centre de droit et d'économie de la mer - CNRS - Centre National de la Recherche Scientifique - UBO - Université de Brest - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - IUEM - Institut Universitaire Européen de la Mer - IRD - Institut de Recherche pour le Développement - INSU - CNRS - Institut national des sciences de l'Univers - UBO - Université de Brest - CNRS - Centre National de la Recherche Scientifique, CSIRO-MAR - CSIRO Marine and Atmospheric Research - CSIRO - Commonwealth Scientific and Industrial Research Organisation [Canberra])

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.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Luc Doyen & R. A Deng & C. M. Dichmont & Sophie Gourguet & S. Jennings & L. Richard Little & S. Pascoe & Olivier Thébaud, 2014. "Risk versus Economic Performance in a Mixed Fishery," Post-Print hal-01134866, HAL.
  • Handle: RePEc:hal:journl:hal-01134866
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01134866
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    References listed on IDEAS

    as
    1. Fishburn, Peter C, 1977. "Mean-Risk Analysis with Risk Associated with Below-Target Returns," American Economic Review, American Economic Association, vol. 67(2), pages 116-126, March.
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    9. Sophie Gourguet & Claire Macher & Luc Doyen & Olivier Thébaud & M. Bertignac & Olivier Guyader, 2013. "Managing mixed fisheries for bio-economic viability," Post-Print hal-00835634, HAL.
    10. Nguyen, Quang & Leung, PingSun, 2009. "Do Fishermen Have Different Attitudes Toward Risk? An Application of Prospect Theory to the Study of Vietnamese Fishermen," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(3), pages 1-21, December.
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    Cited by:

    1. 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).
    2. 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).
    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. 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.
    5. 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.
    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).

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