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The Resource Rent in Sweden's Fishery

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Abstract
  • The report is an analysis of the resource rent in the Swedish fishery, produced as a contribution to the new strategic plan for the Swedish fishery in the years 2007-2013 according to the draft EU regulation for the EFF (European Fishery Fund). A model has been produced based on linear programming. The study originates from the situation in 2004 and with this basis different scenarios are calculated for the coming years. Special emphasis has been put on the optimal resource rent and the maximum number of employed persons within the sector. The actual current situation points to great deficits, and also to a fishery overcapacity. This is due to too many vessels sharing a resource too small. The fixed costs of the overdimensioned fishing fleet turn potential profits into great losses. The effects of restructuring the fishing fleet could be large. An optimal economic scenario suggests that more that 50% of the fleet should be restructured, and that more than 40% of these should even be scrapped, i.e. removed from the fleet altogether. The optimal scenario further suggests that only one-fifth of the total quotas should be landed; catching the remaining four-fifths is not profitable. The goal of utilizing the fish resource is not only to maximize profits, but also for example to spread the use regionally or to maximize employment. The resource rent is expected to be zero at a maximized level of employment. The results show that a restructuring can increase employment as well, even with half of the current utilization of the resource, i.e. with half of the current total catch. The net- and hook segment and the small pelagic vessels are winners from an employment perspective. This is not only due to low incomes per fisherman (which is absolutely not true for the small pelagic vessels), but also to that the profits in these segments can be used to increase total capacity, i.e. the number of vessels. The future is uncertain. Technological development and increasing prices and costs are some of the potential changes that can be expected to take place, but the calibers of these changes are unpredictable. The Baltic Sea seal population is another threat worth considering. A likely future scenario does nevertheless look bright from an economic perspective. The results indicate that restructuring can make the fishing fleet generate a relatively large profit without overexploiting the resource.
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  • Paulrud, Anton. 2006. The Resource Rent in Sweden's Fishery. In: Proceedings of the Thirteenth Biennial Conference of the International Institute of Fisheries Economics & Trade, July 11-14, 2006, Portsmouth, UK: Rebuilding Fisheries in an Uncertain Environment. Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2006. CD ROM. ISBN 0-9763432-3-1
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  • The National Oceanic & Atmospheric Administration Marine Fisheries Service, United States Department of Commerce (NOAA Fisheries); United Kingdom Department for Environment, Food and Rural Affairs (DEFRA); The United States Agency for International Development supported Aquaculture Collaborative Research and Support Program (ACRSP).
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