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Risk averse policies foster bio-economic sustainability in mixed fisheries

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  • Eric Tromeur

    (iEES Paris - Institut d'écologie et des sciences de l'environnement de Paris - IRD - Institut de Recherche pour le Développement - SU - Sorbonne Université - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Luc Doyen

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

  • Violaine Tarizzo

    (X - École polytechnique)

  • L. Richard Little

    (CSIRO Ocean & Atmosphere, CSIRO)

  • Sarah Jennings

    (UTAS - University of Tasmania [Hobart, Australia])

  • Olivier Thébaud

    (IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer)

Abstract

This article examines the role of risk aversion on the sustainable management of mixed fisheries. We consider a bio-economic model of multiple species harvested by a single fleet with uncertain costs of effort. We assume that the regulatory agency aims at reaching MMEY (Multispecies Maximum Economic Yield) by maximizing the expected utility of total profits, where the utility function captures risk aversion. We show analytically that such a risk-averse MMEY mitigates the risk of biological and economic overexploitation of the different species and thus of biodiversity loss. However excessively high risk aversion also may also lessen food production at MMEY. Thus, risk aversion implies a trade-off between different bio-economic goals. These findings are illustrated with the case study of the Australian South East Fishery, where intermediate risk aversion levels allow for balanced bio-economic management objectives, therefore fostering sustainability.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Eric Tromeur & Luc Doyen & Violaine Tarizzo & L. Richard Little & Sarah Jennings & Olivier Thébaud, 2021. "Risk averse policies foster bio-economic sustainability in mixed fisheries," Post-Print halshs-03913035, HAL.
    • Handle: RePEc:hal:journl:halshs-03913035
    DOI: 10.1016/j.ecolecon.2021.107178
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03913035
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    Cited by:

    1. Helene Gomes & Luc Doyen & Fabian Blanchard & Adrien Lagarde, 2021. "Viable and ecosystem-based management for tropical small-scale fisheries facing climate change," Bordeaux Economics Working Papers 2021-24, Bordeaux School of Economics (BSE).
    2. Coralie KERSULEC & Luc DOYEN, 2022. "From fork to fish: The role of consumer preferences on the sustainability of fisheries," Bordeaux Economics Working Papers 2022-10, Bordeaux School of Economics (BSE).
    3. Cuilleret, Mathieu & Doyen, Luc & Gomes, Hélène & Blanchard, Fabian, 2022. "Resilience management for coastal fisheries facing with global changes and uncertainties," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 634-656.
    4. Mathieu Cuilleret & Luc Doyen & Hélène Gomes & Fabian Blanchard, 2021. "Resilience-based management for small-scale fisheries in the face of global changes and uncertainties," Bordeaux Economics Working Papers 2021-20, Bordeaux School of Economics (BSE).

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