Maximizing Profits and Conserving Stocks in the Australian Northern Prawn Fishery
The Australian Northern Prawn fishery (NPF) is one of the few that has adopted a dynamic version of a ‘maximum economic yield’ (MEY) target, and, on this basis, the fishery is undergoing a process of substantial stock rebuilding. This paper details the bioeconomic model that is used to provide scientific management advice for the NPF, in terms of the amount of allowable total (and tradable) gear length in the fishery, both in terms of the MEY target and the path to MEY. It combines the stock assessment process for two species of tiger prawns (brown and grooved tiger prawns) with a specification for discounted economic profits, where the harvest function in the profit equation is stock dependent. Results for the NPF show a substantial ‘stock effect’, indicating the importance of conserving fish stocks for profitability. MEY thus occurs at a stock size that is larger than that at which maximum sustainable yield is achieved, leading to a ‘win-win’ situation for both the industry (added profitability) and the environment (larger fish stocks and lower impacts on the rest of the ecosystem). Sensitivity results emphasize this effect by showing that the MEY target is much more sensitive to changes in the price of prawns and the cost of fuel, and far less so to the rate of discount.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +61 2 6125 4705
Fax: +61 2 6125 5448
Web page: https://crawford.anu.edu.au/research/papers/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tom Kompas & Tuong Nhu Che & R. Quentin Grafton, 2004.
"Technical efficiency effects of input controls: evidence from Australia's banana prawn fishery,"
Taylor & Francis Journals, vol. 36(15), pages 1631-1641.
- Tom Kompas & Tuong Nhu Che & R. Quentin Grafton, 2003. "Technical Efficiency Effects of Input Controls: Evidence from Australia's Banana Prawn Fishery," Economics and Environment Network Working Papers 0304, Australian National University, Economics and Environment Network.
- Tom Kompas & Tuong Nhu Che & R. Quentin Grafton, 2003. "Technical efficiency effects of input controls: evidence from Australia's banana prawn fishery," International and Development Economics Working Papers idec03-3, International and Development Economics.
- Ahmed, Mahfuzuddin & Boonchuwongse, Pongpat & Dechboon, Waraporn & Squires, Dale, 2007. "Overfishing in the Gulf of Thailand: policy challenges and bioeconomic analysis," Environment and Development Economics, Cambridge University Press, vol. 12(01), pages 145-172, February.
- Richard Horan & James Shortle, 1999. "Optimal Management of Multiple Renewable Resource Stocks: An Application to Minke Whales," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 13(4), pages 435-458, June.
When requesting a correction, please mention this item's handle: RePEc:idc:wpaper:idec08-04. 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: (Tom Kompas)
If references are entirely missing, you can add them using this form.