Output Substitution in Multi-Species Trawl Fisheries: Implications for Quota Setting

49 Pages Posted: 24 Mar 2004

See all articles by Sean Pascoe

Sean Pascoe

University of Portsmouth - Faculty of Business - Department of Economics

Trond Bjorndal

Imperial College Business School

Phoebe Koundouri

Athens University of Economics and Business - Department of International and European Economic Studies; University of Reading - Department of Economics

Date Written: February 2004

Abstract

In most multi-species fisheries managed through output controls, total allowable catches (TACs) are set primarily on the basis of biological considerations, usually on a species by species basis. An implicit assumption of management is that fishers are able to adjust their product mix in line with these quotas. If this is not the case, then over-quota catch occurs, leading to either illegal landings or discards. In either case, the effectiveness of the TAC in conserving the resource is reduced. In this paper we show that in the case of multi-species fisheries that exhibit jointness in production, setting TACs on an individual species' basis is inappropriate. In particular, we quantify technical interactions through the estimation of a multi-output distance function for the UK North Sea beam and otter trawl fisheries, and find that in most cases, the potential of substitutability between the main and alternative species is relatively small. We argue that failure to quantify and integrate these technical interactions in the construction of management instruments for fisheries regulation, may result in increased discarding, illegal fishing and potentially lower than expected future yields.

Keywords: Multi-output fishery, Multi-output distance function, Elasticities of substitution

JEL Classification: Q22

Suggested Citation

Pascoe, Sean and Bjorndal, Trond and Koundouri, Phoebe, Output Substitution in Multi-Species Trawl Fisheries: Implications for Quota Setting (February 2004). Available at SSRN: https://ssrn.com/abstract=504562 or http://dx.doi.org/10.2139/ssrn.504562

Sean Pascoe

University of Portsmouth - Faculty of Business - Department of Economics ( email )

Locksway Road
Milton
Hants, PO4 8JF
United Kingdom
+44 (0)23 9284 4242 (Phone)

HOME PAGE: http://www.port.ac.uk/departments/economics/staff/pascoes.htm

Trond Bjorndal

Imperial College Business School ( email )

South Kensington Campus
Exhibition Road
London SW7 2AZ, SW7 2AZ
United Kingdom
+ 44 20 7594 9265 (Phone)
+ 44 20 7589 5319 (Fax)

Phoebe Koundouri (Contact Author)

Athens University of Economics and Business - Department of International and European Economic Studies ( email )

GR-10434 Athens
Greece
+0030 210 8203147 (Phone)
+0030 210 8214122 (Fax)

HOME PAGE: http://www.econ.ucl.ac.uk/downloads/koundouri/cv.pdf

University of Reading - Department of Economics ( email )

Reading, RG6 6AA
United Kingdom
+44 - (0)118 - 9875123 (Phone)
+44 - (0)118 - 9750236 (Fax)

HOME PAGE: http://www.rdg.ac.uk/economics/koundouri.html

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