IDEAS home Printed from https://ideas.repec.org/p/isu/genstf/201501010800001061.html
   My bibliography  Save this paper

Cap-and-trade Bycatch Management with Costly Avoidance and Stock Uncertainty

Author

Listed:
  • Singh, Rajesh
  • Weninger, Quinn

Abstract

Regulations to reduce bycatch of non-marketed marine species often impose gear restrictions, reductions in harvest of the target species, and/or spatial and temporal closures of the fishing ground. These regulations can exact significant social costs in commercial fisheries. We evaluate performance of a cap-and-trade bycatch management policy. Harvest of a target fish species, costly avoidance of the bycatch species, and harvesting efficiency are examined in a stochastic production environment with and without at-sea observability of bycatch, and with and without trade in harvest quotas and bycatch caps. Our results suggest that precise implementation of a socially optimal management plan is possible only if bycatch is observable and trade in fish quotas and bycatch cap is frictionless. Conditions exist in which quota/permit trading raises bycatch relative to a no-trade environment. The results offer useful guidance for designing cap-and-trade bycatch management programs.

Suggested Citation

  • Singh, Rajesh & Weninger, Quinn, 2015. "Cap-and-trade Bycatch Management with Costly Avoidance and Stock Uncertainty," ISU General Staff Papers 201501010800001061, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:201501010800001061
    as

    Download full text from publisher

    File URL: https://dr.lib.iastate.edu/server/api/core/bitstreams/2f8ddf1a-1e71-41da-9bc2-78c3b042e2e6/content
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Singh, Rajesh & Weninger, Quinn, 2009. "Bioeconomies of scope and the discard problem in multiple-species fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 58(1), pages 72-92, July.
    2. Abbott, Joshua K. & Wilen, James E., 2009. "Regulation of fisheries bycatch with common-pool output quotas," Journal of Environmental Economics and Management, Elsevier, vol. 57(2), pages 195-204, March.
    3. Naresh Pradhan & PingSun Leung, 2008. "Sea turtle interactions with Hawaii's longline fishery: an extended multi-objective programming model incorporating spatial and seasonal dimensions," Applied Economics, Taylor & Francis Journals, vol. 40(16), pages 2121-2134.
    4. Pascoe, Sean & Innes, James & Holland, Dan & Fina, Mark & Thébaud, Olivier & Townsend, Ralph & Sanchirico, James & Arnason, Ragnar & Wilcox, Chris & Hutton, Trevor, 2010. "Use of Incentive-Based Management Systems to Limit Bycatch and Discarding," International Review of Environmental and Resource Economics, now publishers, vol. 4(2), pages 123-161, October.
    5. Boyce, John R., 1996. "An Economic Analysis of the Fisheries Bycatch Problem," Journal of Environmental Economics and Management, Elsevier, vol. 31(3), pages 314-336, November.
    6. Turner, Matthew A., 1997. "Quota-Induced Discarding in Heterogeneous Fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 33(2), pages 186-195, June.
    7. Holland, D.S., 2010. "Markets, pooling and insurance for managing bycatch in fisheries," Ecological Economics, Elsevier, vol. 70(1), pages 121-133, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhou, Rong & Segerson, Kathleen, 2014. "Individual vs. Collective Quotas in Fisheries Management: Efficiency and Distributional Impacts," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170601, Agricultural and Applied Economics Association.
    2. Holland, Daniel S. & Jannot, Jason E., 2012. "Bycatch risk pools for the US West Coast Groundfish Fishery," Ecological Economics, Elsevier, vol. 78(C), pages 132-147.
    3. Aaron Hatcher, 2014. "Implications of a Discard Ban in Multispecies Quota Fisheries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(3), pages 463-472, July.
    4. Melstrom, Richard T., 2015. "Cyclical harvesting in fisheries with bycatch," Resource and Energy Economics, Elsevier, vol. 42(C), pages 1-15.
    5. Veyssiere, Luc Pierre, 2009. "A three essays dissertation on agricultural and environmental microeconomics," ISU General Staff Papers 200901010800001958, Iowa State University, Department of Economics.
    6. Stephen Kasperski, 2015. "Optimal Multi-species Harvesting in Ecologically and Economically Interdependent Fisheries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 61(4), pages 517-557, August.
    7. Singh, Rajesh & Weninger, Quinn, "undated". "Discretion rather than rules in multiple-species fisheries," ISU General Staff Papers 202311071438390000, Iowa State University, Department of Economics.
    8. Holland, D.S., 2010. "Markets, pooling and insurance for managing bycatch in fisheries," Ecological Economics, Elsevier, vol. 70(1), pages 121-133, November.
    9. Donovan, Pierce & Springborn, Michael, 2022. "Balancing conservation and commerce: A shadow value viability approach for governing bycatch," Journal of Environmental Economics and Management, Elsevier, vol. 114(C).
    10. Holzer, Jorge & DePiper, Geret, 2019. "Intertemporal quota arbitrage in multispecies fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 93(C), pages 185-207.
    11. Kasperski, Stephen, 2016. "Optimal multispecies harvesting in the presence of a nuisance species," Marine Policy, Elsevier, vol. 64(C), pages 55-63.
    12. Singh, Rajesh & Weninger, Quinn, 2017. "Spatial and seasonal equilibrium harvesting in quota-managed multispecies fisheries," ISU General Staff Papers 201708300700001033, Iowa State University, Department of Economics.
    13. Singh, Rajesh & Weninger, Quinn, 2007. "Economies of Scope in the Management of Mulitple Species Fisheries," Working Papers 7348, Iowa State University, Department of Economics.
    14. Singh, Rajesh & Weninger, Quinn, 2017. "Quota flexibility in multi-species fisheries," ISU General Staff Papers 201707260700001026, Iowa State University, Department of Economics.
    15. Aaron Hatcher, 2022. "A Model of Quota Prices in a Multispecies Fishery with “Choke” Species and Discarding," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(4), pages 825-846, August.
    16. Steve J. Miller & Robert T. Deacon, 2017. "Protecting Marine Ecosystems: Regulation Versus Market Incentives," Marine Resource Economics, University of Chicago Press, vol. 32(1), pages 83-107.
    17. Abbott, Joshua K. & Wilen, James E., 2009. "Regulation of fisheries bycatch with common-pool output quotas," Journal of Environmental Economics and Management, Elsevier, vol. 57(2), pages 195-204, March.
    18. Herrera, Guillermo E., 2005. "Stochastic bycatch, informational asymmetry, and discarding," Journal of Environmental Economics and Management, Elsevier, vol. 49(3), pages 463-483, May.
    19. Zinnia Mukherjee, 2016. "Controlling stochastic externalities with penalty threats: the case of bycatch," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(1), pages 93-113, January.
    20. Rong Zhou & Kathleen Segerson, 2016. "Individual vs. Collective Approaches to Fisheries Management," Marine Resource Economics, University of Chicago Press, vol. 31(2), pages 165-192.

    More about this item

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

    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:isu:genstf:201501010800001061. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Curtis Balmer (email available below). General contact details of provider: https://edirc.repec.org/data/deiasus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.