1 FLEcon Fisheries 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 FLEcon class - FLCost 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" 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 FLCompliance class - Pr(non-compliance) name = "character" desc = "character" range = "numeric" parameters = "list" inparms = "list" model = "character" Parameters: - multiplier - probability Inparms: benefits - Pr(detection)* exp[fine]+ social norms 1.Fixed multiplier effects 2.Parameter based multiplier effects

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