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Cooperation, Externalities, and Spatial Property Rights: Implications for Small Scale Fisheries Management

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  • Data scarcity and weak institutional governance make the implementation of top-down, quota-based fisheries management in much of the developing world’s fisheries difficult. An alternative to quota-based management is the use of space-based rights such as territorial use rights fisheries (TURFs). In spite of wide spread use of TURFs as a management tool, the efficient design of spatial property rights remains poorly understood. When resource populations are distributed across discrete patches of space and connected via mobility, then it is likely that local harvest behavior will impose external costs in neighboring spaces. If rights are held communally, the spatial extent of the property right partly determines the incentives to act noncooperatively which, in turn, determines the resulting externalities. In this paper, we present a spatially explicit model of a renewable resource in the context of a small scale developing country fishery. The model incorporates spatial movement of the resource between patches and the interactions of agents both within and between patches. We characterize the incentives for TURF members to act noncooperatively in terms of TURF size and biophysical features of the fishery. In addition, we characterize how the losses accruing from dynamic harvest externalities within the TURF and spatial externalities outside the TURF depend on patch size and spatial configuration. We find that biological dispersal patterns and patch size are critical in determining both the likelihood for internal cooperation and, when cooperation fails, the relative magnitude and distribution of spatial externalities.
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  • Sampson, Gabriel S., James N. Sanchirico and James E. Wilen. 2015. Cooperation, Externalities, and Spatial Property Rights: Implications for Small Scale Fisheries Management. In: Proceedings of the Eighth Biennial Forum of the North American Association of Fisheries Economists, May 20-22, 2015, Ketchikan, Alaska: Economic Sustainability, Fishing Communities and Working Waterfronts. Compiled by Ann L. Shriver and Melissa Errend. North American Association of Fisheries Economists, Corvallis, Oregon, USA, 2015.
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  • Ketchikan, Alaska, USA
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  • Alaska Sea Grant, North Pacific Fishery Management Council, North Pacific Research Board, Northern Economics, Pollock Conservation Cooperative Research Center, Rasmuson Foundation, University of Alaska Fairbanks, School of Fisheries and Ocean Sciences, University of Alaska Southeast, Ketchikan
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