An efficient portfolio approach towards ecosystem-based fisheries governance in EU
In the framework of multispecies fisheries governance, the main objective of this paper is to apply modern portfolio theory (MPT) to the North-East Atlantic European fisheries, including all the key commercial fish species subject to total allowable catches (TAC) and quota regimes within the EU. Thi...
Published in: | Fisheries Research |
---|---|
Main Authors: | , |
Format: | Article in Journal/Newspaper |
Language: | English |
Published: |
Elsevier
2022
|
Subjects: | |
Online Access: | http://hdl.handle.net/10810/58495 https://doi.org/10.1016/j.fishres.2022.106427 |
id |
ftunivpaisvasco:oai:addi.ehu.eus:10810/58495 |
---|---|
record_format |
openpolar |
spelling |
ftunivpaisvasco:oai:addi.ehu.eus:10810/58495 2023-05-15T17:38:21+02:00 An efficient portfolio approach towards ecosystem-based fisheries governance in EU Lopetegui Buján, Itsaso Del Valle Erquiaga, Miren Ikerne 2022-10 application/pdf http://hdl.handle.net/10810/58495 https://doi.org/10.1016/j.fishres.2022.106427 eng eng Elsevier info:eu-repo/grantAgreement/MICIU/RTI2018-099225-B-I00 https://www.sciencedirect.com/science/article/pii/S0165783622002041?via%3Dihub Fisheries Research 254 : (2022) // Article ID 106427 0165-7836 1872-6763 http://hdl.handle.net/10810/58495 doi:10.1016/j.fishres.2022.106427 info:eu-repo/semantics/openAccess http://creativecommons.org/licenses/by-nc-nd/3.0/es/ © 2022 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by- nc-nd/4.0/) Atribución-NoComercial-SinDerivadas 3.0 España CC-BY-NC-ND multispecies fisheries management modern portfolio theory efficient portfolio conditional value at risk return info:eu-repo/semantics/article 2022 ftunivpaisvasco https://doi.org/10.1016/j.fishres.2022.106427 2022-11-30T00:20:45Z In the framework of multispecies fisheries governance, the main objective of this paper is to apply modern portfolio theory (MPT) to the North-East Atlantic European fisheries, including all the key commercial fish species subject to total allowable catches (TAC) and quota regimes within the EU. This is done, first, quantifying the inherent return and risk of the potential fish portfolios and, secondly, estimating an individual constrained financial efficient frontier (FEF) for each of the nine fishing countries in the North-East Atlantic. Unlike previous studies in the field of financial fisheries economics, and due to its major robustness under non-normality and the presence of fat tails, we are using Conditional Value-at-Risk (CVaR) instead of the conventional mean-variance optimization (MVO) as the method to solve the optimization problem of minimizing risk under a set of alter-native constraints so as to obtain the respective FEFs. Our results show that changing the species portfolio distribution, it would be possible to improve efficiency, that is to say, to simultaneously get increasing returns and decreasing risk levels. Moreover, this efficiency gain would be compatible with specific quota transfers among fishing countries. Itsaso Lopetegui is grateful for the financial support from the Predoctoral Research Training Program from the Basque Government, Spain (Programa Predoctoral de Formación de Personal Investigador No Doctor del Departamento de Educación, Política Lingüística y Cultura del Gobierno Vasco) and research grant EGONLABUR from the same department. This study has received financial support from the Spanish Ministry of Economics and Competitiveness, Spain (Project Ref: RTI2018–099225-B-I00). Article in Journal/Newspaper North East Atlantic ADDI: Repositorio Institucional de la Universidad del País Vasco (UPV) Tac ENVELOPE(-59.517,-59.517,-62.500,-62.500) Fisheries Research 254 106427 |
institution |
Open Polar |
collection |
ADDI: Repositorio Institucional de la Universidad del País Vasco (UPV) |
op_collection_id |
ftunivpaisvasco |
language |
English |
topic |
multispecies fisheries management modern portfolio theory efficient portfolio conditional value at risk return |
spellingShingle |
multispecies fisheries management modern portfolio theory efficient portfolio conditional value at risk return Lopetegui Buján, Itsaso Del Valle Erquiaga, Miren Ikerne An efficient portfolio approach towards ecosystem-based fisheries governance in EU |
topic_facet |
multispecies fisheries management modern portfolio theory efficient portfolio conditional value at risk return |
description |
In the framework of multispecies fisheries governance, the main objective of this paper is to apply modern portfolio theory (MPT) to the North-East Atlantic European fisheries, including all the key commercial fish species subject to total allowable catches (TAC) and quota regimes within the EU. This is done, first, quantifying the inherent return and risk of the potential fish portfolios and, secondly, estimating an individual constrained financial efficient frontier (FEF) for each of the nine fishing countries in the North-East Atlantic. Unlike previous studies in the field of financial fisheries economics, and due to its major robustness under non-normality and the presence of fat tails, we are using Conditional Value-at-Risk (CVaR) instead of the conventional mean-variance optimization (MVO) as the method to solve the optimization problem of minimizing risk under a set of alter-native constraints so as to obtain the respective FEFs. Our results show that changing the species portfolio distribution, it would be possible to improve efficiency, that is to say, to simultaneously get increasing returns and decreasing risk levels. Moreover, this efficiency gain would be compatible with specific quota transfers among fishing countries. Itsaso Lopetegui is grateful for the financial support from the Predoctoral Research Training Program from the Basque Government, Spain (Programa Predoctoral de Formación de Personal Investigador No Doctor del Departamento de Educación, Política Lingüística y Cultura del Gobierno Vasco) and research grant EGONLABUR from the same department. This study has received financial support from the Spanish Ministry of Economics and Competitiveness, Spain (Project Ref: RTI2018–099225-B-I00). |
format |
Article in Journal/Newspaper |
author |
Lopetegui Buján, Itsaso Del Valle Erquiaga, Miren Ikerne |
author_facet |
Lopetegui Buján, Itsaso Del Valle Erquiaga, Miren Ikerne |
author_sort |
Lopetegui Buján, Itsaso |
title |
An efficient portfolio approach towards ecosystem-based fisheries governance in EU |
title_short |
An efficient portfolio approach towards ecosystem-based fisheries governance in EU |
title_full |
An efficient portfolio approach towards ecosystem-based fisheries governance in EU |
title_fullStr |
An efficient portfolio approach towards ecosystem-based fisheries governance in EU |
title_full_unstemmed |
An efficient portfolio approach towards ecosystem-based fisheries governance in EU |
title_sort |
efficient portfolio approach towards ecosystem-based fisheries governance in eu |
publisher |
Elsevier |
publishDate |
2022 |
url |
http://hdl.handle.net/10810/58495 https://doi.org/10.1016/j.fishres.2022.106427 |
long_lat |
ENVELOPE(-59.517,-59.517,-62.500,-62.500) |
geographic |
Tac |
geographic_facet |
Tac |
genre |
North East Atlantic |
genre_facet |
North East Atlantic |
op_relation |
info:eu-repo/grantAgreement/MICIU/RTI2018-099225-B-I00 https://www.sciencedirect.com/science/article/pii/S0165783622002041?via%3Dihub Fisheries Research 254 : (2022) // Article ID 106427 0165-7836 1872-6763 http://hdl.handle.net/10810/58495 doi:10.1016/j.fishres.2022.106427 |
op_rights |
info:eu-repo/semantics/openAccess http://creativecommons.org/licenses/by-nc-nd/3.0/es/ © 2022 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by- nc-nd/4.0/) Atribución-NoComercial-SinDerivadas 3.0 España |
op_rightsnorm |
CC-BY-NC-ND |
op_doi |
https://doi.org/10.1016/j.fishres.2022.106427 |
container_title |
Fisheries Research |
container_volume |
254 |
container_start_page |
106427 |
_version_ |
1766138768894459904 |