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The Norwegian Structural Policy - Maintaining Productivity Growth With a Limited Natural Resource

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  • Overcapacity is probably the most fundamental challenge to fisheries management as it can lead to both overfishing and to low profitability. Most of the Norwegian fisheries have limited entry, through the use of annual permits (coastal fleet) and licences (ocean going fleet) in combination with individual vessel quotas (IVQ). Limited entry is necessary in order to secure a stable resource basis for the participants. This can also ensure profitability and future investments in the fishing fleet, without using fisheries subsidies. The shares of the overall Norwegian TAC is allocated to different vessel groups, and then distributed between the vessels within the different groups. This allows for several ways of reducing overcapacity, where marked based instruments have aimed at reducing the overall number of operating vessels, while simultaneously protecting the small-scale fleet, maintaining coastal settlements and encompassing regional considerations. The two primary structural instruments that have been employed are decommissioning and various systems for consolidating vessel quotas. In 2007 the current structural system was introduced in the White Paper Norwegian structural policy, which among other alterations put a time limitation on 20 to 25 years on the use of consolidated quotas, and the system was extended to include the vessel group between 11 and 15 meters. This extension was recently evaluated and examined in relation to other instruments used for this vessel group. This paper discusses the Norwegian experience of employing structural instruments within a limited entry scheme with individual vessel quotas.
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  • Dahl-Jørgensen, Rolv. 2010. The Norwegian Structural Policy - Maintaining Productivity Growth With a Limited Natural Resource. 11 pages. In: Proceedings of the Fifteenth Biennial Conference of the International Institute of Fisheries Economics & Trade, July 13-16, 2010, Montpellier, France: Economics of Fish Resources and Aquatic Ecosystems: Balancing Uses, Balancing Costs. Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2010.
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  • US National Oceanic and Atmospheric Administration (NOAA) Fisheries Division, Agence Française de Développement, Ministère de l’Enseignement Supérieur et de la Recherche, Ministère de L’Alimentation de L’Agriculture et de la Pêche, Ministère de l’Énergie, du Développement Durable et de la Mer, La Région Languedoc Rouslilon, Département Hérault, Montpellier Agglomèration, The Department of Fisheries and Oceans, Canada, and AquaFish Collaborative Research Support Program (CRSP).
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