Between 1996 and 2000, the Federal Government of Canada reduced the number of salmon fishing licences in British Columbia by 50%, from a total of 4416 to the current 2221 licences, through voluntary “licence retirement”. The total cost of this program was $273.5 million over 5 years. The purpose of...
This paper develops an option value model to examine vessel owners in deciding to participate or not in the vessel buyback program. The model accounts for the uncertainty generally involved in a decision to retire an aged vessel and the underlying value of waiting for new information about the profitability...