Abstract
This paper seeks to explain the circumstances under which using total allowable catch (TAC) as an instrument to manage a fishery along with fishing periods may be of interest from a regulatory point of view. The deterministic analysis by Homans and Wilen (J Environ Econ Manag 32:1–21, 1997) and Anderson (Ann Oper Res 94:231–257, 2000) is thus extended to a stochastic scenario where the resource cannot be measured accurately. The resulting model is solved numerically to find the optimal control rules in the Iberian sardine stock. Three relevant conclusions can be highlighted from simulations: first, the greater the uncertainty regarding the state of the stock, the lower the probability of the fishery being closed before the end of the fishing period. Second, the use of TACs as a management instrument in fisheries that are already regulated by fishing periods leads to: (i) an increase in the optimal season length and harvests, especially for medium and high numbers of licences; (ii) improved biological and economic variables when the fleet is large; and (iii) extinction risk for the resource being eliminated. Third, the regulator would rather select the number of licences than restrict the season length.
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This paper has benefited from comments and suggestions by the Editor, David Finnoff, and two anonymous referees. Financial aid from the European Commission (MYFISH, FP7-KBBE-2011-5), the Spanish Ministry of Education and Science (SEJ2006-12793/ECON, ECO2009-14697-C02-01) and the Basque Government (HM-2008-1-13) is gratefully acknowledged. The first draft of the paper was written while Jose Maria Da Rocha was visiting Institut d’Analisi Economica-CSIC. He gratefully acknowledges the hospitality of Institut d’Analisi Economica-CSIC.
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Da Rocha, J.M., Gutiérrez, M.J. Endogenous Fishery Management in a Stochastic Model: Why Do Fishery Agencies Use TACs Along with Fishing Periods?. Environ Resource Econ 53, 25–59 (2012). https://doi.org/10.1007/s10640-012-9546-6
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DOI: https://doi.org/10.1007/s10640-012-9546-6