The fishing capacity problem and its management
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The fishing capacity problem and its management. David Agnew. 47 Princes Gate, London d.agnew@imperial.ac.uk. Definitions and measurement.

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The fishing capacity problem and its management

The fishing capacity problem and its management

David Agnew

47 Princes Gate, London

d.agnew@imperial.ac.uk


Definitions and measurement
Definitions and measurement

  • OVERCAPACITY is, for a given resource condition, the situation where the amount of fish that can be caught over a period of time by the fully utilised (unconstrained) fleet is greater than required to ensure a target level of sustainable exploitation.

  • Ct = q.E.Bt

  • Bt+1 = p(Bt) + Rt - Ct

    • using CPUE, E, B characterise q for fleets

    • Estimate maximum possible Cmax

    • Cmax should be <= YMAX


Causes of overcapacity
Causes of overcapacity

  • Non-maleable capital

  • Open access creates individual incentives

  • Government intervention (subsidies) – in and out

  • Overseas subsidies – export of capital in access agreements

  • Technology developments – effort creep

  • Management systems

    • That encourage capital stuffing/race to fish

    • With intrinsic boom/bust cycle mismatches

  • Unstable management reference points – MSY


Example north sea cod
Example – North sea cod

Subsidised building


Unstable management systems

Arctic cod

Unstable management systems

  • Management by output control (TAC) assumes full knowledge and compliance

  • Output management does not usually track capacity (or q)

  • YMAX should be limit not target reference point


Consequences
Consequences

  • Economic waste

  • Resource overexploitation

  • Capital transfer – exporting the problem

  • IUU

  • Discarding, highgrading, blackfish

  • Overcapacity problems often negate all other management attempts, eg ecosystem based management


Management of capacity
Management of capacity

  • IPOA

    • Efficient transparent and equitable management of capacity by 2003 (!) or 2005


Incentive blocking
Incentive blocking

  • Limited entry

  • Non-domestic capacity

  • Buy back

  • Gear and vessel restrictions, catch limits

  • TACs

  • Easy to implement, particularly suited to mixed developing country fisheries

  • Combinations of limited entry & TAC work but require monitoring

  • Encourage competition and race to fish – likely to end up here again!


Incentive adjusting
Incentive adjusting

  • ITQs

  • ITEQ individually transferable effort quotas

  • Taxes & royalties

  • Territorial user rights to fish (TURF)

  • Saving (rather than recapitalising) supra-normal profits

  • Inspire responsibility/ stewardship

  • Remove incentives to overcapitalise

  • Complex to implement


Conclusions
Conclusions

  • Monitor and continually adjust capacity

  • Move away from YMAX brinkmanship

  • Change management approaches to deal with boom-bust

  • Subsidies ….

Refs: Report of the technical working group on the management of capacity, 1998. FAO fish tech papers 386 & 409.