Global Fisheries: Production and Challenges

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Questions and Answers

What has caused production from capture fisheries to stagnate?

Enhanced fishing technology

Increased investment in aquaculture

Decreased demand for fish products

Overcapacity in fishing fleets (correct)

What is the main consequence of overfishing in marine fisheries?

Stabilization of fish stock sizes

Reduction of available fish for harvest (correct)

Increased biomass of fish populations

Improvement of marine ecosystems

Which of the following represents the long-run equilibrium of a fishery in the absence of fishing?

Stock size at S1 (correct)

Maximum sustainable economic rent

Maximum economic profit

Sustained yield curve

What is characterized by the pair (y1, S1) in the fishery growth model?

Annual growth and stable stock size Signup and view all the answers

What is the estimated loss of economic net benefits from marine fisheries in 2012?

$83 billion Signup and view all the answers

What does maximum sustainable yield correspond to in a fishery's growth model?

Harvest at ym Signup and view all the answers

What is one of the main problems currently faced in marine fisheries?

Overcapitalization of fishing fleets Signup and view all the answers

What happens to the stock if harvest is held constant at y1 and there’s a random increase in the stock?

Growth will exceed harvest Signup and view all the answers

What is the most efficient level of fishing effort related to sustained yields?

Effort below maximum sustained yield Signup and view all the answers

What happens when individuals freely enter a fishery under open access conditions?

Dissipation of resource rent occurs Signup and view all the answers

How do Total Allowable Catch (TAC) limits impact resource rent?

They can lead to resource rent dissipation Signup and view all the answers

What is the relationship between fishing effort level E* and sustained yield?

E* is less than Emax Signup and view all the answers

What is a primary issue associated with command-and-control policies in fisheries?

Raised costs of fishing Signup and view all the answers

Which fishing practice has led to inefficiencies by promoting conservation?

Banning motorized boats Signup and view all the answers

Which of the following best describes Individual Transferable Quotas (ITQs)?

Facilitate the trading of catch quotas among fishers Signup and view all the answers

What typically results from the 'race for fish' scenario in open access fisheries?

Overexploitation of fish resources Signup and view all the answers

What does the efficient level of fishing effort maximize?

Sustained resource rent Signup and view all the answers

In what way can quotas address issues in fisheries management?

By securing individual claims and lowering overall costs Signup and view all the answers

What generally happens to profits in an open access fishery?

They become negative over time Signup and view all the answers

Why might political rent seeking occur in fisheries management?

To increase individual fishers' quotas Signup and view all the answers

What characterizes a fishery regulated by Individual Transferable Quotas (ITQs)?

Encouragement to minimize harvesting costs Signup and view all the answers

What impact does increased fishing effort beyond maximum sustainable yield typically have?

Decreases both stock size and growth rate Signup and view all the answers

Study Notes

World Fisheries Production and Problems

Global fish production increases, driven by aquaculture growth, while capture fisheries remain stagnant.
Overexploitation of ocean capture fisheries is a major problem, costing approximately $83 billion in economic losses in 2012.
Maximum sustainable economic rent was estimated at $86 billion, while global fisheries profit was only $3 billion in 2012.

Current Problems in Marine Fisheries

Overfishing
Overcapitalization (excessive fishing fleet investment)
Water pollution
Conflicts over fishing rights (national and within-nations)
Protection of marine ecosystems

Modeling Fisheries: Biological Growth Function

A simple biological model shows fish biomass growth as a function of stock size (fish population).
The equilibrium stock size in the absence of fishing yields a stable harvest level.
Maximum sustained yield (MSY) occurs at stock size 𝑆𝑚 and harvest 𝑦𝑚, but this isn't an economically efficient solution.
Sustained yields (below MSY) and associated stock sizes are stable, allowing for indefinite harvest.
Other sustained yields can be maintained, but some are less sustainable and thus less efficient.
There are many stable sustained yield and stock size pairs, but which is most efficient economically?

Yield/Effort Function

Effort (fishing input) is a composite measure of all fishing inputs.
Higher fishing effort reduces stock size, initially increasing yield, but eventually decreases sustainable yields.
Maximum sustainable yield (MSY) corresponds to an effort level 𝐸𝑚.
Exceeding 𝐸𝑚 leads to decreased growth and yields, making it inefficient.

Efficient Rates of Fishing Effort

Profit maximization occurs at a different effort level (𝐸∗) than MSY.
Higher stock levels are associated with maximum profit.
Efficient effort minimizes total effort costs and maximizes sustained rent, achieving maximum sustained profit.
Open-access fisheries generate lower and inefficient effort levels than efficient levels.

Open Access Problem

Unrestricted access leads fishers to increase effort as long as profits are positive (when there is still some resource rent).
Open-access equilibrium occurs where total revenue equals total cost; there's no resource rent.
All the resource rent gets dissipated by open access and inefficient expenditure.

Regulating Fishing Practices

Command-and-control policies restrict fishing practices (e.g., area closures, fishing days, gear restrictions).
Command and control policies are generally inefficient as they often raise the relative cost of fishing and do not eliminate inefficiencies.

Total Allowable Catch (TAC) Limits

TAC restricts the total harvest, but is inefficient without further measures.
TAC alone is inefficient and doesn't protect resource rent.
Fishermen increase effort to maximize their share of the TAC, leading to over-capitalization.

Individual Transferable Quotas (ITQs)

ITQs allocate fixed catch quotas to individual fishers, transferable between them.
ITQs control the total harvest while allowing low-cost fishers to exploit the resources more efficiently.
ITQs increase fishery efficiency.
ITQs maximize resource rent for all involved participants.

Issues of Efficient Fisheries Management

ITQs create private benefits from a public resource.
Government taxes on quotas could capture resource rent for the benefit of the broader public.
Political influence and lobbying for higher catch quotas can be problems or further reduce efficiencies to the system.
ITQs may cause contraction of fisheries and negative impacts on some coastal communities.
Enforcement of ITQs to ensure fishers do not exceed their limits can be problematic and incentivise "poaching" for rent.

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Description

Explore the complexities of global fisheries production and the problems surrounding marine ecosystems. This quiz covers overfishing, economic impacts, and models of biological growth functions in fisheries. Test your knowledge on current challenges and sustainable practices in the fishing industry.