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Upcoming in Class

Upcoming in Class. Homework #8 due today Homework #9 due next Wednesday Quiz #4 Wednesday Nov. 14 th Group Outline due Wed. Nov. 14 th Exam #4 Wed. Nov 28 th Homework #10 Wed. Nov. 28th. Homework #8.

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Upcoming in Class

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  1. Upcoming in Class Homework #8 due today Homework #9 due next Wednesday Quiz #4 Wednesday Nov. 14th Group Outline due Wed. Nov. 14th Exam #4 Wed. Nov 28th Homework #10 Wed. Nov. 28th

  2. Homework #8 • What is the difference between a stable and an unstable equilibrium in the population of a fishery? Use a graph to support your answer. Where does the maximum sustained yield occur in your graph?

  3. Homework #8 • Use a graph with a total cost curve and a total revenue curve for a fishery to show the difference between the economically optimal harvest, the maximum sustained yield, and the open-access equilibrium.

  4. Homework #8 • What is the typical relationship between the economic optimum (EE), maximum sustained yield (EM), and the open-access equilibrium (EO)?

  5. Relationship between the Fish Population and Growth

  6. The Gordon-Schaefer Model

  7. Market Allocation in a Fishery

  8. The Price of Fish If the price of fish increases, total revenue will increase, shifting the open-access equilibrium higher and the stock of fish lower. As stocks deplete, we move closer to the minimum viable population. Lower stocks imply more scarcity and higher prices.

  9. Fisheries Problem Price = $1,000/ton Cost per Boat is $4,000

  10. Problem Construct a graph showing the relationship between stock and growth Find the stock level corresponds to the following: Maximum Sustainable Yield(MSY), natural equilibriums, and the stable and unstable equilibriums

  11. Growth

  12. Problem 2 Now assume that we can translate this population/yield relationship into an economic relationship between fishing boats and total product.

  13. A Problem with Fishing Boats Fish prices average $10 per fish and the cost to operate a fishing boat for a year is $40. Construct a graph showing total revenue and total costs in the fishery. Derive graphs showing marginal and average revenue and marginal cost.

  14. Problem

  15. Identify the following A natural state with no fishing industry A fishing industry obtaining the MSY from the fishery A fishing industry operating under an efficient management plan, with economically optimal returns A fishing industry characterized by open access.

  16. Public Policies • Private Ownership • Raise the Real Cost of Fishing • NB =0 • Permits or Taxes • Welfare transfer to government • ITQs (Individual Transferable Quotas ) • Welfare depends on initial winners and losers

  17. ITQ Markets • Efficient ITQ Market • Quota entitles holder to catch a specified amount of the total authorized catch • Catch authorized is equal to the efficient catch for the fishery • Quotas should be freely transferable among fishermen • ITQs Allocation • Auction • Grandfathering • Lottery

  18. CANADA'S PACIFIC COAST GEODUCK CLAM FISHERY

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