FLEcon Fisheries library economic module

1. FLEconFisheries library economic module Contributors so far: (CEMARE, IMARES, LEI, DIFRES, AZTI CEFAS, FOI, IREPA……) Projects: FEMS, COMMIT/EFIMAS, Fisboat….

2. Milestones so far… • Identification of components in the economic module (Sevilla meeting) • Including descriptions of basic math forms • Implementation of a basic working module (Lisbon meeting) • Implementation of a beta version (Hampton Court meeting) • Inclusion of functions (Copenhagen, Economists)

3. Important features of FLEcon • Designed to provide the basic tools with which to build the economic part of a bio-economic model • particularly with biological assessment models • Thus… • this provides capacity for the development of economic indicators and drivers • allows direct linking to standard biological models provided in FLR (i.e. linking to other objects) • fits into a forward projection simulation framework • this may ultimately be full feedback for some case studies

4. Incorporation of economic indicators and drivers • Indicators • Direct use • Drivers - Case study dependent • “Dynamics” of the study (long-term average Vs dynamic) • Fleet mobility (effort allocation) • Fleet adaptation • Effects of prices and costs (e.g. fuel) • Testing compliance - the evaluation of different multi-annual management options (‘effects of misreporting’) • Consistency across case studies?

5. FLFleet class • "name" = character(0) • "desc" = character(0) • "range" = numeric(0) • "catches" = list() • "effort" = list() • "capacity" = list() • "crewshare" = "FLQuant" • "vcost" = "FLQuant" • "fcost" ="FLQuant"

6. name = "character" desc = "character" range = "numeric" landing = "FLQuant" licence = "FLQuant" fuel = "FLQuant" bait = "FLQuant" ice = "FLQuant" food = "FLQuant" insurance = "FLQuant" management = "FLQuant" leasing = "FLQuant" crew = "FLQuant" maintenance = "FLQuant" depreciation = "FLQuant" opportunity = "FLQuant" interest = "FLQuant" other = "FLQuant" list.fixed = "list" FLEcon class - FLCost list.fixed = list(landing=F, licence=T, fuel=F, bait=F, ice=F, food=F, insurance=T, management=T, leasing=T, maintenance=F, depreciation=NA, crew=NA, interest=NA, opportunity=NA, other=T)

7. FLPrice class • name = "character" • desc = "character" • range = "numeric" • parameters = "list" • price = "FLQuant" • landings = "FLQuant" • residuals = "FLQuant" • model = "character" Parameters: - sr.flexibility - lr.flexibility- elasticity- lr.average

8. Functions for FLPrice • Price relationship calculation: • “constant” = long run average price • “simple” = basic price flexibility (i.e. price change given level of landings) Note: advanced dynamic price models are not being planned for the Core.

9. Functions - FLEcon • Sum Variable Costs (links to slot in FLFleet) • Sum Fixed Costs (links to slot in FLFleet) • Input/output routine: • Reads in cost structure from a text file (using a VPA-type structure) • Indicators • Value of landings • Crew share • Net profit • Gross cash flow • Gross value added

10. Fixed multiplier effects • Parameter based multiplier effects FLCompliance class - Pr(non-compliance) Parameters: - multiplier - probability • name = "character" • desc = "character" • range = "numeric" • parameters = "list" • inparms = "list" • model = "character" Inparms: benefits - Pr(detection)* exp[fine]+ social norms

11. Other potential components • Capacity utilisation • Data: trip level logbook data - SPF • DEA (R-based) • Fishermen behaviour • Short-term and long-term • RUM-based or rule-based • Data: SR – trip level logbook data; LR – vessel data • Tools: RUM – conditional logit (clogit R package) • Link between: LR equilibrium and profit maximisation

12. Further development FLEcon • Indicators • Value of landings • Crew share • Net profit • Gross cash flow • Gross value added • Functions • Issue of open-source generic, flexibility, and consistency