This paper considers the costs of fisheries management. It starts by reviewing the costs of fisheries management in Iceland, Newfoundland and Norway. The outcome of this study, as well as information from other countries, indicates that fisheries management costs are generally quite substantial relative to the value of landed catch.
It follows that the common practice of ignoring fisheries management costs in the derivation of optimal fisheries rules and the actual design of fisheries policy is generally erroneous, perhaps seriously so. The necessary modifications of the
usual fisheries optimality conditions are derived and the quantitative implications discussed.
The existence of significant fisheries management costs obviously raises the issue of the most efficient provision of these services. How much fisheries services should be provided, by whom and who should pay the cost? The last part of the
paper deals with this type of questions. Although not many general results seem to be readily available, it appears that efficiency would generally be served by a diminished role of the central government in this area.
Arnason, R. Costs of Fisheries Management: Theoretical and Practical Implications. In: Microbehavior and Macroresults: Proceedings of the Tenth Biennial Conference of the International Institute of Fisheries Economics and Trade, July 10-14, 2000, Corvallis, Oregon, USA. Compiled by Richard S. Johnston and Ann L. Shriver. International Institute of Fisheries Economics and Trade (IIFET), Corvallis, 2001.