The effect of quota portfolio composition on optimal harvest strategy and profitability in a multi-species fishery
Abstract The benefits of individual vessel quota (IVQ) management in terms of improved harvest strategy and profitability are well recognized, but there is less focus on how different components of a quota portfolio can influence decisions underlying the effort allocation and profit-maximizing behav...
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Oxford University Press (OUP)
2023
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Online Access: | http://dx.doi.org/10.1093/icesjms/fsad135 https://academic.oup.com/icesjms/article-pdf/80/8/2099/52071194/fsad135.pdf |
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croxfordunivpr:10.1093/icesjms/fsad135 2024-04-28T08:11:54+00:00 The effect of quota portfolio composition on optimal harvest strategy and profitability in a multi-species fishery Alizadeh Ashrafi, Tannaz Hermansen, Øystein Kvamsdal, Sturla F Prellezo, Raul 2023 http://dx.doi.org/10.1093/icesjms/fsad135 https://academic.oup.com/icesjms/article-pdf/80/8/2099/52071194/fsad135.pdf en eng Oxford University Press (OUP) https://creativecommons.org/licenses/by/4.0/ ICES Journal of Marine Science volume 80, issue 8, page 2099-2113 ISSN 1054-3139 1095-9289 Ecology Aquatic Science Ecology, Evolution, Behavior and Systematics Oceanography journal-article 2023 croxfordunivpr https://doi.org/10.1093/icesjms/fsad135 2024-04-09T07:55:05Z Abstract The benefits of individual vessel quota (IVQ) management in terms of improved harvest strategy and profitability are well recognized, but there is less focus on how different components of a quota portfolio can influence decisions underlying the effort allocation and profit-maximizing behaviour of fishers. Variations in the components of the quota portfolio may create economic incentives that alter the optimal harvest strategy and profitability. Thus, we study the potential impact of different components of quota portfolio on the intra-annual harvest strategy and profitability in two segments of the Norwegian bottom trawl fleet. By developing a vessel-based spatio-temporal bioeconomic framework, we demonstrate and compare adopted harvest strategies and accrued profits for small and large trawl vessels under three scenarios regarding restrictive quotas in codfish fishery. Our analysis confirms that alternations in the components of the quota portfolio influence the spatio-temporal dynamics of the fishing effort for small and large trawl vessels in different ways, probably due to the differences in vessel-specific characteristics. We also demonstrate that the differences in profit between small and large vessels in part depend on the overall size of the quota portfolio. The economies of scale in the trawl industry are being eroded as the shares of higher-priced species in the quota portfolio decreases. The benefits of economies of scale cannot be reaped as trawlers respond to the reduction in profit by redirecting effort from offshore areas of the Arctic to nearshore waters or staying ashore. Likewise, having small quotas of high-priced species reduces the effectiveness of the IVQ system in meeting management objectives, and could in some cases undermine sustainability outcomes. Our results also demonstrate that both the intensity with which fishers react to the fluctuations in market price levels and fishers’ perceptions of location attractiveness are influenced by the components of the quota portfolio. Article in Journal/Newspaper Arctic Oxford University Press ICES Journal of Marine Science |
institution |
Open Polar |
collection |
Oxford University Press |
op_collection_id |
croxfordunivpr |
language |
English |
topic |
Ecology Aquatic Science Ecology, Evolution, Behavior and Systematics Oceanography |
spellingShingle |
Ecology Aquatic Science Ecology, Evolution, Behavior and Systematics Oceanography Alizadeh Ashrafi, Tannaz Hermansen, Øystein Kvamsdal, Sturla F The effect of quota portfolio composition on optimal harvest strategy and profitability in a multi-species fishery |
topic_facet |
Ecology Aquatic Science Ecology, Evolution, Behavior and Systematics Oceanography |
description |
Abstract The benefits of individual vessel quota (IVQ) management in terms of improved harvest strategy and profitability are well recognized, but there is less focus on how different components of a quota portfolio can influence decisions underlying the effort allocation and profit-maximizing behaviour of fishers. Variations in the components of the quota portfolio may create economic incentives that alter the optimal harvest strategy and profitability. Thus, we study the potential impact of different components of quota portfolio on the intra-annual harvest strategy and profitability in two segments of the Norwegian bottom trawl fleet. By developing a vessel-based spatio-temporal bioeconomic framework, we demonstrate and compare adopted harvest strategies and accrued profits for small and large trawl vessels under three scenarios regarding restrictive quotas in codfish fishery. Our analysis confirms that alternations in the components of the quota portfolio influence the spatio-temporal dynamics of the fishing effort for small and large trawl vessels in different ways, probably due to the differences in vessel-specific characteristics. We also demonstrate that the differences in profit between small and large vessels in part depend on the overall size of the quota portfolio. The economies of scale in the trawl industry are being eroded as the shares of higher-priced species in the quota portfolio decreases. The benefits of economies of scale cannot be reaped as trawlers respond to the reduction in profit by redirecting effort from offshore areas of the Arctic to nearshore waters or staying ashore. Likewise, having small quotas of high-priced species reduces the effectiveness of the IVQ system in meeting management objectives, and could in some cases undermine sustainability outcomes. Our results also demonstrate that both the intensity with which fishers react to the fluctuations in market price levels and fishers’ perceptions of location attractiveness are influenced by the components of the quota portfolio. |
author2 |
Prellezo, Raul |
format |
Article in Journal/Newspaper |
author |
Alizadeh Ashrafi, Tannaz Hermansen, Øystein Kvamsdal, Sturla F |
author_facet |
Alizadeh Ashrafi, Tannaz Hermansen, Øystein Kvamsdal, Sturla F |
author_sort |
Alizadeh Ashrafi, Tannaz |
title |
The effect of quota portfolio composition on optimal harvest strategy and profitability in a multi-species fishery |
title_short |
The effect of quota portfolio composition on optimal harvest strategy and profitability in a multi-species fishery |
title_full |
The effect of quota portfolio composition on optimal harvest strategy and profitability in a multi-species fishery |
title_fullStr |
The effect of quota portfolio composition on optimal harvest strategy and profitability in a multi-species fishery |
title_full_unstemmed |
The effect of quota portfolio composition on optimal harvest strategy and profitability in a multi-species fishery |
title_sort |
effect of quota portfolio composition on optimal harvest strategy and profitability in a multi-species fishery |
publisher |
Oxford University Press (OUP) |
publishDate |
2023 |
url |
http://dx.doi.org/10.1093/icesjms/fsad135 https://academic.oup.com/icesjms/article-pdf/80/8/2099/52071194/fsad135.pdf |
genre |
Arctic |
genre_facet |
Arctic |
op_source |
ICES Journal of Marine Science volume 80, issue 8, page 2099-2113 ISSN 1054-3139 1095-9289 |
op_rights |
https://creativecommons.org/licenses/by/4.0/ |
op_doi |
https://doi.org/10.1093/icesjms/fsad135 |
container_title |
ICES Journal of Marine Science |
_version_ |
1797579053354450944 |