1. Fisheries Management: Principal Methods, Advantages and Disadvantages
Fridrik M. Baldursson Institute of Economic Studies
University of Iceland
Presentation at information seminar held by the Icelandic Ministry of Fisheries
Kopavogur, Iceland September 6, 2002

2. Why manage a commercially valuable fish stock?
Open access:
No incentives among producers to conserve the resource for future use
Leads to competition among producers to catch fish before others do
Overinvestment and overfishing
At best, fishery is run with zero profits, at worst the stock collapses
Managing necessary, economically and biologically!

5. Challenges Fluctuations, uncertainty and imperfect information
Multispecies fisheries, by-catches and discards
Monitoring and enforcement
Incomplete and multiple jurisdiction
Socio-economic issues

6. Management measures Output constraints Input constraints
Technical measures

7. Output regulation Total allowable catch (TAC)
Individual fishing quotas
Vessel catch limits

8. Input regulation Individual effort quotas (e.g. no. of days at sea )
Limited licenses (e.g. number of boats)
Other gear and vessel restrictions (e.g. size of boats)

9. Technical measures Time and area closures Size and sex selectivity
Neither effective nor efficient on their own
Necessary side measures within other management regimes
Not discussed further

10. Comments Measures of different types can be (and are) used jointly
Individual concessions may be tradable or non-tradable
Choice of management regime should take account of a number of features
characteristics of fisheries (biological , economic, social, institutional)
goals of government (economic efficiency, biological conservation, social/regional patterns)

11. Input regulation in theory and practice
Operators have strong incentives to invest in new and more productive boats and equipment to increase productivity  overinvestment
In principle, biological targets achieved
In practice
impossible to control all inputs
difficult to reduce no. of boats / effort when needed
Usually results in inefficient fisheries and fishing in excess of goals

14. TAC only “Olympic fishing”
In theory: inefficient, but can conserve stocks
Experience: bad on both counts
race-to-fish
overinvestment
higher fishing and processing costs

15. Source: “Sharing the Fish: Toward a National Policy on Fishing Quotas
Source: “Sharing the Fish: Toward a National Policy on Fishing Quotas.” National Academy Press 1999

16. Source: “Sharing the Fish: Toward a National Policy on Fishing Quotas
Source: “Sharing the Fish: Toward a National Policy on Fishing Quotas.” National Academy Press 1999

17. TAC + IFQs Advantages Necessary conditions: can achieve TAC
leads to efficient fisheries (fishing and processing), especially with tradability
Necessary conditions:
Stock can be measured with reasonable accuracy
TACs are set for efficiency and conservation
Cost effective monitoring and enforcement possible
Stakeholder support and participation (as in all regimes!)

21. Disadvantages Socio-economic issues Biological issues Questions:
Allocation; distribution of resource rent
Regional impacts
Entry
Biological issues
high-grading and discarding
bycatches
Questions:
to what extent are these issues more difficult in IQ system that other systems?
To what extent can they be mitigated?

22. Conclusion No “one-size fits all” solution
TAC+ITQ system is a good solution, given the right circumstances
Problems are often an inevitable consequence given the goal of sustainable management
Ongoing process - must constantly take improved knowledge into account