Leisure/Labor Tradeoffs: The Backward-Bending Labor Supply in Fisheries

Economists have understood that the open-access nature of fishing grounds can cause the long-run fishery supply to bend backward. There is also increasing speculation that fishermen respond to falling output price either by increasing or decreasing effort, depending on the circumstances. This suggests a short-run backward-bending supply of fishing labor. A dynamic, utility-theoretic model of fishermen's behavior is developed to address this possibility. The model highlights both contemporaneous and intertemporal trade-offs between labor and leisure. The model is tested and the results indicate that the short-run labor supply in fisheries may exhibit backward-bending properties. In addition, changes in current prices may trigger changes in expectations of future prices, causing potentially greater counterintuitive behavior. These results challenge many traditional regulatory strategies (e.g., output taxes) that address problems of open access.     

Taxing overexploited open-access fisheries: the role of demand elasticity

The paper aims at identifying the effects exerted by a tax levy on an overexploited and previously unregulated fishery. The analysis is carried out by means of a dynamic model that includes fish stock and harvesting effort as state variables. Attention is focused on the role played by demand elasticity which is shown to affect both transients and equilibria.According to the analysis, a levy induces a contraction in effort, which is sharper in the short term. As a consequence, the fish population recovers and ultimately settles at a higher equilibrium level. Therefore, a larger amount of fish is caught in the long run and sold at a lower price than in the unregulated setting. The more inelastic the demand, the smaller both the equilibrium price for fish and the tax imposed.     

The effects on welfare of the imposition of individual transferable quotas on a heterogeneous fishing fleet

This paper examines the determination of effort levels, the rental price of quotas and the number of participants in a fishery managed with a total allowable catch and individual transferable quotas. How these variables change is determined for three phases of the management process. Potential participants in the fishery are assumed to be heterogeneous in their catching capabilities so that almost all active fishers earn positive net profits from fishing activities. It is shown that these quasirents are reduced during any of the management phases considered here. The impact of free allocations of permanent quota rights on fishers’ welfare is also considered. This may increase the welfare of all fishers if the allocation is based on catch history. However, an example is provided where the welfare of some highliners is reduced when the allocation is based on effort history.     

Optimal fishery policy with artificial enhancement through stocking: California's white sturgeon as an example

Although optimal fishery policy has been derived from different kinds of economic and biological models, the interaction of fishing policy with artificial stocking policy has not been explicitly considered. We here determine optimal size limits, fishing effort, and stocking rate for three cases of interest: (1) recruitment-limited population, pre-recruitment stocking; (2) adult biomass-limited population, post-recruitment stocking; and (3) adult biomass-limited and recruitment-limited population, post-recruitment stocking. Results show that lower size limits should be set at the size at which the current market value exceeds the total future value of an individual, both to the fishery and to reproduction. Imposition of upper size limits is rarely optimal. Stocking is advisable when the hatchery cost times the relative contribution of stocking to recruitment is less than the contribution to the value of the catch. Optimal policy ranges from infinite effort at a specific size limit with maximum stocking when the cost of stocking is zero, to lower values of size limit and effort as stocking costs increase, the amount of stocking decreases, and more natural reproduction is optimal. Thus, as hatchery costs decline (or value of captured fish increases), optimal stocking/fishery policy varies from an unstocked fishery to a “put and take” fishery. The results are applied to the sturgeon fishery in the San Francisco Bay Estuary as an example. They imply that a reduced lower size limit and greater fishing mortality together with stocking would be optimal, but that current levels are conservative. The stocking decision depends critically on the values of parameters that are currently poorly known, such as: hatchery costs, survival to the fishery and the mechanisms controlling the sturgeon population.     

Optimization of an artificial neural network for identifying fishing set positions from VMS data: An example from the Peruvian anchovy purse seine fishery

The spatial behavior of numerous fishing fleets is nowadays well documented thanks to satellite Vessel Monitoring Systems (VMS). Vessel positions are recorded on a frequent and regular basis which opens promising perspectives for improving fishing effort estimation and management. However, no specific information is provided on whether the vessel is fishing or not. To answer that question, existing works on VMS data usually apply simple criteria (e.g. threshold on speed). Those simple criteria generally focus in detecting true positives (a true fishing set detected as a fishing set); conversely, estimation errors are given no attention. For our case study, the Peruvian anchovy fishery, those criteria overestimate the total number of fishing sets by 182%. To overcome this problem an artificial neural network (ANN) approach is presented here. In order to set both the optimal parameterization and use “rules” for this ANN, we perform an extensive sensitivity analysis on the optimization of (1) the internal structure and training algorithm of the ANN and (2) the “rules” used for choosing both the relative size and the composition of the databases (DBs) used for training and inferring with the ANN. The “optimized” ANN greatly improves the estimates of the number and location of fishing events. For our case study, ANN reduces the total estimation error on the number of fishing sets to 1% (in average) and obtains 76% of true positives. This spatially explicit information on effort, provided with error estimation, should greatly reduce misleading interpretations of catch per unit effort and thus significantly improve the adaptive management of fisheries. While fitted on Peruvian anchovy fishery data, this type of neural network approach has wider potential and could be implemented in any fishery relying on both VMS and at-sea observer data. In order to increase the accuracy of the ANN results, we also suggest some criteria for improving sampling design by at-sea observers and VMS data.     

Management and exploitation dynamics of small-scale fisheries in the Bay of Biafra: An integrative analysis of purse seine fishing activity

For many decades, fisheries research has focused on stock assessment and the impact of the fishery effort on resources. Although this knowledge remains necessary, a more integrated analysis of the joint dynamics of resource and operational activities is needed to provide more useful advice for the management of fishery systems. Since 1994 a new approach to fishery science has been carried out for Cameroonian small-scale fisheries, the aim being the incorporation into fishery science of research on fishery management, fishing processes and fishermen's behaviour. This paper presents a more systemic data approach which combines biological parameters and operational factor analyses with the goal of sustainable development. From two years of data collected on the purse seine fishing units operating in the Bay of Biafra (2002 and 2003), a set of three correspondence analyses is applied: (1) to the length frequency distribution of Ethmalosa fimbriata, (2) to the number of visits per fishing ground, and (3) to the species appearance frequency in the landings. These three analyses were plotted per month-year period. The results are presented in the form of an annual exploitation cycle, linking fishing grounds, the main species caught, and corresponding fishing period.     

An agent-based model for simulating trading of multi-species fisheries quota

Individual transferable quotas (ITQs) are increasingly seen as a way to make fisheries more profitable and halt over-capitalisation. ITQs allocate to users of a resource a share of a total allowable catch (TAC) which they are free to use, lease, or sell. We outline an approach to modelling the effect of an ITQ system in a multi-species, multi-sector fishery and apply it to the Coral Reef Fin Fish Fishery (CRFFF) in Queensland, Australia. An ITQ model, based on the assumption that operators seek to maximize profits, simulates the use of tradeable quota units by operators in the fishery, taking account of the initial quota allocation to operators, seasonal fish prices and individual operator variable costs, their fishing efficiency and experience, and constraints on vessel movements. Rationalization of the fishery is predicted to occur under an ITQ system for the CRFFF, which will lead to reductions in effort, increases in profits, and changes over time in quota prices. The ecological consequences of transferable quota in the multi-species fishery are seen in the catch and discard levels of the less profitable species, even though a TAC was set. This had flow-on effects on biomass. For example, simulations showed that the TAC for the primary target species, coral trout, was used more fully than that for a less valuable target species, red throat emperor, and that this was achieved through increased discarding of red throat emperor. Catches of both coral trout and red throat emperor that were derived from the model were higher than those recently observed in the fishery. The effort predicted by the model, however, closely approximated the actual effort observed in the fishery following implementation of ITQ management.     

Private aquaculture and commercial fisheries: Bioeconomics of salmon ranching

This paper shows that common property problems associated with open access salmon ranching in the absence of a commercial fishery result in inefficiency characterized by overstocking. The presence of an open access fishery presents additional common property problems which will inhibit the development of fish ranching. At prices where salmon ranching does occur, the open access commercial fishery will tend to overexploit the natural fish stock to a greater extent than if there were no salmon ranching. It is shown that there exists a range of prices where both fish stocks can coexist with open access. However, there is a limit price above which the natural stock will be driven to extinction through overfishing stimulated by stock from salmon ranchers. The range of prices under which both species can coexist can be increased through either restrictions of fishery effort or reducing the catchability of aquacultured stock. Cooperative management of both aquaculture and commercial fishing results in profits from both activities and will not cause extinction of the natural fish stock.     

A simulation model to explore the relative value of stock enhancement versus harvest regulations for fishery sustainability

Harvest restrictions and stock enhancement are commonly proposed management responses for sustaining degraded fisheries, but comparisons of their relative effectiveness have seldom been considered prior to making policy choices. We built a population model that incorporated both size-dependent harvest restrictions and stock enhancement contributions to explore trade-offs between minimum length limits and stock enhancement for improving population sustainability and fishery metrics (e.g., catch). We used a Murray cod Maccullochella peelii peelii population as a test case, and the model incorporated density-dependent recruitment processes for both hatchery and wild fish. We estimated the spawning potential ratio (SPR) and fishery metrics (e.g., angler catch) across a range of minimum length limits and stocking rates. Model estimates showed that increased minimum length limits were much more effective than stock enhancement for increasing SPR and angler catches in exploited populations, but length limits resulted in reduced harvest. Stocking was predicted to significantly increase total recruitment, population sustainability, and fishery metrics only in systems where natural reproduction had been greatly reduced via habitat loss, fishing mortality was high, or both. If angler fishing effort increased with increased fish abundance from stocking efforts, fishing mortality was predicted to increase and reduce the benefits realized from stocking. The model also indicated that benefits from stock enhancement would be reduced if reproductive efficiency of hatchery-origin fish was compromised. The simulations indicated that stock enhancement was a less effective method to improve fishery sustainability than measures designed to reduce fishing mortality (e.g., length limits).     

Estimating the elasticity of substitution between restricted and unrestricted inputs in a regulated fishery: A probit approach

Catch, effort, vessel, and skipper characteristic data for a sample of boats involved in the Tasmanian rock lobster fishery in the 1983/1984 season are used to estimate a fishing effort production function nested in a Cobb-Douglas fishery production function. The initial effort function is translog but tests suggest that the CES form cannot be rejected. The vessel's choice of fishing ground is modeled by a probit equation, the output from which is included in the OLS estimation of the production function. The elasticity of substitution between the inputs which are restricted by regulation and the other inputs is of particular interest as it determines whether input restriction is an efficient form of regulation for the fishery. The results suggest a value significantly less than unity.     

The optimal tax for maximum economic yield: Fishery regulation under rational expectations

This paper examines the optimal tax to achieve maximum economic yield (MEY) exploitation in a rational expectations model of a competitive open-access fishery. To analyze the dynamic evolution of resource use a structural model which explains the relationship between the firm and the industry is presented. The unregulated equilibrium is contrasted with the potential MEY. Conditions under which the unregulated equilibrium will be MEY are explored. In addition, a tax is devised which will cause non-MEY competitive exploitation to become MEY when the tax is implemented.     

Fishing the line near marine reserves in single and multispecies fisheries.

Throughout the world "fishing the line" is a frequent harvesting tactic in communities where no-take marine reserves are designated. This practice of concentrating fishing effort at the boundary of a marine reserve is predicated upon the principle of spillover, the net export of stock from the marine reserve to the surrounding unprotected waters. We explore the consequences and optimality of fishing the line using a spatially explicit theoretical model. We show that fishing the line: (1) is part of the optimal effort distribution near no-take marine reserves with mobile species regardless of the cooperation level among harvesters; (2) has a significant impact on the spatial patterns of catch per unit effort (CPUE) and fish density both within and outside of the reserve; and (3) can enhance total population size and catch simultaneously under a limited set of conditions for overexploited populations. Additionally, we explore the consequences of basing the spatial distribution of fishing effort for a multispecies fishery upon the optimality of the most mobile species that exhibits the greatest spillover. Our results show that the intensity of effort allocated to fishing the line should instead be based upon more intermediate rates of mobility within the targeted community. We conclude with a comparison between model predictions and empirical findings from a density gradient study of two important game fish in the vicinity of a no-take marine-life refuge on Santa Catalina Island, California (USA). These results reveal the need for empirical studies to account for harvester behavior and suggest that the implications of spatial discontinuities such as fishing the line should be incorporated into marine-reserve design.     

Quantifying the squeezing or stretching of fisheries as they adapt to displacement by marine reserves

The designation of no‐take marine reserves involves social and economic concerns due to the resulting displacement of fishing effort, when fishing rights are removed from those who traditionally fished within an area. Displacement can influence the functioning of the fishery and success of the reserve, yet levels of displacement are seldom quantified after reserve implementation and very rarely before that. We devised a simple analytical framework based on set theory to facilitate reserve placement. Implementation of the framework requires maps of fishing grounds, fishing effort, or catch per unit effort for at least 2 years. The framework quantifies the level of conflict that a reserve designation might cause in the fishing sector due to displacement and the opportunities to offset the conflict through fisher spatial mobility (i.e., ability of fishers to fish elsewhere). We also considered how the outputs of the framework can be used to identify targeted management interventions for each fishery. We applied the method in Honduras, where the largest marine protected area in Central America is being placed, for which spatial data on fishing effort were available for 6 fisheries over 3 years. The proposed closure had a greater negative impact on the shrimp and lobster scuba fisheries, which concentrated respectively 28% and 18% of their effort inside the reserve. These fisheries could not accommodate the displacement within existing fishing grounds. Both would be forced to stretch into new fishing grounds, which are available but are of unknown quality. These stakeholders will likely require compensation to offset costly exploratory fishing or to travel to fishing grounds farther away from port.     

Optimum size limit for a fishery with a limited fishing season

In the management of a fishery with many year-classes, a standard objective is to maximize the biomass yield. If the fishing effort is fixed, this objective can be attained by prescribing an optimum size limit. This implies that only fish which are larger than the optimum size limit should be caught. The theory for computing the optimum size limit when fishing is carried out continuously is well established. In contrast the theory for computing the optimum size limit when the fishing season is limited to the same period in each year has not been developed in spite of the fact that many fisheries are exploited in this manner. A fishing season may be limited because the weather or the migration patterns of the fish population permits fishing only during a certain period in the year. A fishing season may also be limited because it is necessary to reduce the fishing mortality in order to conserve the fish population.A theory for computing the optimum size limit when the fishing season is limited is developed in this paper. It is applied to a hypothetical fishery. The data for this example comes from the North Sea plaice fishery. It is found that for a given fishing effort the optimum size limit is 44.5 cm if fishing is carried out continuously, 41.3 cm if fishing is limited to 6 months in a year and 28.7 cm if fishing is limited to a period of one tenth of a year in each year.     

A bioeconomic model of an international fishery

The conventional analyses of exploited fisheries is extended to situations where several national fleets harvest the resource. Using a simple biological model, the dynamics of such a fishery are explored and the open-access equilibria described. The model highlights the mutual interdependencies of the several fishing fleets, which are of importance when considering management policies in a regime of extended national jurisdiction. Several alternatives for managing such fisheries are also discussed.     

Optimal harvesting of ecologically interdependent fish species

The optimal exploitation of a two-species predator-prey system is considered, using Lotka-Volterra-type equations. Due to the density-dependence of ecological efficiency, both species should be harvested simultaneously over a range of relative prices. Beyond the limits of this price range, either the prey species should be utilized indirectly by harvesting the predator, or the predator should be eliminated to maximize the prey yield. Neglecting harvesting costs, the simultaneous harvest of prey and predators requires that a unit of prey biomass increase in value by being “processed” by predators. Certain results from single-species fishery models are shown not to apply to multispecies models. These are as follows: (i) Optimal regulation of a free access fishery may call for subsidizing instead of taxing the harvest of predator species. (ii) Increasing the discount rate may, at “moderate” levels, imply that the optimal standing stock of biomass increases instead of decreasing. (iii) A rising price or a falling cost per unit fishing effort of a species may raise and not lower the optimal standing stock of that species.     

A general bioeconomic simulation model for annual-crop marine fisheries

A generalized bioeconomic simulation model of annual-crop marine fisheries is described and its use in marine fisheries management is demonstrated. The biological submodel represents the recruitment of new organisms into the fishery, the movement of organisms from one fishing area to another and from one depth to another, the growth of organisms and the mortality of organisms resulting both from natural causes and from fishing. The economic submodel represents the fishing effort exerted on each resource species, the monetary costs of fishing, the value of the harvest and the rent (or excess profits) to the fishery.Basic dynamics of the model results from changes in the number of organisms in the fishery over time, which can be summarized as a set of difference equations of the general form ΔN/Δt = R + I ? E ? M ? F where ΔN/Δt is the net change in number of organisms in the fishery over time, R is recruitment, I is immigration, E is emigration, M is natural mortality and F is fishing mortality. R is a driving variable, whereas I, E, M and F are functions of the state of the system at any given point in time. The model can be run in a deterministic or stochastic mode. Values for parameters affecting rates of recruitment, movement, growth, natural mortality and fishing mortality can be selected from uniform, triangular or normal distributions.Use of the model within a fisheries-management framework is demonstrated by evaluating several management alternatives for the pink shrimp (Penaeus duorarum) fishery on the Tortugas grounds in the Gulf of Mexico. Steps involved in use of the model, including parameterization, validation, sensitivity analysis and stochastic simulations of management policies, are explained.     

Malthusian overfishing and efforts to overcome it on Kenyan coral reefs

This study examined trends along a gradient of fishing intensity in an artisanal coral reef fishery over a 10-year period along 75 km of Kenya's most populated coastline. As predicted by Malthusian scenarios, catch per unit effort (CPUE), mean trophic level, the functional diversity of fished taxa, and the diversity of gear declined, while total annual catch and catch variability increased along the fishing pressure gradient. The fishery was able to sustain high (approximately 16 Mg x km(-2) x yr(-1)) but variable yields at high fishing pressure due to the dominance of a few productive herbivorous fish species in the catch. The effect of two separate management strategies to overcome this Malthusian pattern was investigated: fisheries area closure and elimination of the dominant and most "competitive" gear. We found that sites within 5 km of the enforced closure showed significantly lower total catch and CPUE, but increased yield stability and trophic level of catch than predicted by regression models normalized for fishing effort. Sites that had excluded illegal beach seine use through active gear management exhibited increased total catch and CPUE. There was a strong interaction between closure and gear management, which indicates that, for closures to be effective at increasing catch, there must be simultaneous efforts at gear management around the periphery of the closures. We propose that Malthusian effects are responsible for the variation in gear and catch and that active management through reduced effort and reductions in the most competitive gear have the greatest potential to increase the functional and trophic diversity and per-person productivity.     

Collaborative assessment of California spiny lobster population and fishery responses to a marine reserve network

Assessments of the conservation and fisheries effects of marine reserves typically focus on single reserves where sampling occurs over narrow spatiotemporal scales. A strategy for broadening the collection and interpretation of data is collaborative fisheries research (CFR). Here we report results of a CFR program formed in part to test whether reserves at the Santa Barbara Channel Islands, USA, influenced lobster size and trap yield, and whether abundance changes in reserves led to spillover that influenced trap yield and effort distribution near reserve borders. Industry training of scientists allowed us to sample reserves with fishery relevant metrics that we compared with pre-reserve fishing records, a concurrent port sampling program, fishery effort patterns, the local ecological knowledge (LEK) of fishermen, and fishery-independent visual surveys of lobster abundance. After six years of reserve protection, there was a four- to eightfold increase in trap yield, a 5-10% increase in the mean size (carapace length) of legal sized lobsters, and larger size structure of lobsters trapped inside vs. outside of three replicate reserves. Patterns in trap data were corroborated by visual scuba surveys that indicated a four- to sixfold increase in lobster density inside reserves. Population increases within reserves did not lead to increased trap yields or effort concentrations (fishing the line) immediately outside reserve borders. The absence of these catch and effort trends, which are indicative of spillover, may be due to moderate total mortality (Z = 0.59 for legal sized lobsters outside reserves), which was estimated from analysis of growth and length frequency data collected as part of our CFR program. Spillover at the Channel Islands reserves may be occurring but at levels that are insufficient to influence the fishery dynamics that we measured. Future increases in fishing effort (outside reserves) and lobster biomass (inside reserves) are likely and may lead to increased spillover, and CFR provides an ideal platform for continued assessment of fishery-reserve interactions.     

Fishing quota markets

In 1986, New Zealand responded to the open-access problem by establishing the world's largest individual transferable quota (ITQ) system. Using a 15-year panel dataset from New Zealand that covers 33 species and more than 150 markets for fishing quotas, we assess trends in market activity, price dispersion, and the fundamentals determining quota prices. We find that market activity is sufficiently high in the economically important markets and that price dispersion has decreased. We also find evidence of economically rational behavior through the relationship between quota lease and sale prices and fishing output and input prices, ecological variability, and market interest rates. Controlling for these factors, our results show a greater increase in quota prices for fish stocks that faced significant reductions, consistent with increased profitability due to rationalization. Overall, this suggests that these markets are operating reasonably well, implying that ITQs can be effective instruments for efficient fisheries management.