Maximizing Profits and Conserving Stocks in the Australian Northern Prawn Fishery

19 Pages Posted: 28 Jul 2010

See all articles by Tom Kompas

Tom Kompas

University of Melbourne

Cathy M. Dichmont

affiliation not provided to SSRN

André E. Punt

affiliation not provided to SSRN

A. Deng

affiliation not provided to SSRN

Tuong Nhu Che

Government of the Commonwealth of Australia - Australian Bureau of Agricultural and Resource Economics (ABARE)

Janet Bishop

affiliation not provided to SSRN

Peter Gooday

Independent

Yemin Ye

affiliation not provided to SSRN

S. Zhou

affiliation not provided to SSRN

Abstract

The Australian Northern Prawn Fishery (NPF) is one of the few that has adopted a dynamic version of a ‘maximum economic yield’ (MEY) target, and, on this basis, the fishery is undergoing a process of substantial stock rebuilding. This study details the bioeconomic model used to provide scientific management advice for the NPF, in terms of the amount of allowable total gear length in the fishery, for both the MEY target and the path to MEY. It combines the stock assessment process for two species of tiger prawns with a specification for discounted economic profits, where the harvest function in the profit equation is stock-dependent. Results for the NPF show a substantial ‘stock effect’, indicating the importance of conserving fish stocks for profitability. MEY thus occurs at a stock size that is larger than that at maximum sustainable yield, leading to a ‘win-win’ situation for both the industry (added profitability) and the environment (larger fish stocks and lower impact on the ecosystem). Sensitivity results emphasize this effect by showing that the MEY target is much more sensitive to changes in the price of prawns and the cost of fuel, and far less so to the rate of discount.

Suggested Citation

Kompas, Tom and Dichmont, Cathy M. and Punt, André E. and Deng, A. and Che, Tuong Nhu and Bishop, Janet and Gooday, Peter and Ye, Yemin and Zhou, S., Maximizing Profits and Conserving Stocks in the Australian Northern Prawn Fishery. Australian Journal of Agricultural and Resource Economics, Vol. 54, No. 3, pp. 281-299, July 2010, Available at SSRN: https://ssrn.com/abstract=1649718 or http://dx.doi.org/10.1111/j.1467-8489.2010.00493.x

Tom Kompas (Contact Author)

University of Melbourne ( email )

Parkville, Victoria
Melbourne, Victoria 3010
Australia

Cathy M. Dichmont

affiliation not provided to SSRN

No Address Available

André E. Punt

affiliation not provided to SSRN

No Address Available

A. Deng

affiliation not provided to SSRN

No Address Available

Tuong Nhu Che

Government of the Commonwealth of Australia - Australian Bureau of Agricultural and Resource Economics (ABARE) ( email )

Canberra
Australia

Janet Bishop

affiliation not provided to SSRN

Peter Gooday

Independent

Yemin Ye

affiliation not provided to SSRN

S. Zhou

affiliation not provided to SSRN

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