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Individual Habitat Quotas for Fisheries Public Deposited

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  • Fishery managers in the United States are required to identify and limit adverse consequences of fishing on essential fish habitat. We propose a cap-and-trade system for habitat conservation that would utilize economic incentives to achieve habitat conservation goals cost effectively. Individual quotas of habitat impact units (HIU) would be distributed to fishers with an aggregate quota set to maintain a target habitat "stock". Fishers would access a GIS database to determine the HIU they would be charged at each location and a vessel monitoring system would monitor HIU use. HIU use would be based on marginal habitat damage. We use a dynamic explicitly spatial fishery and habitat simulation model to explore the cost effectiveness of this system versus alternative means of achieving habitat conservation targets. Individual vessels are given quotas of both fish and HIU and are distributed to locations with the highest margin between HIU cost and revenue. The model uses an iterative approach to find the minimum price for HIU that allows fish quotas to be taken without exhausting all HIU. The cap-and-trade system is compared to habitat protection implemented through fixed or rotating closed areas by comparing the effort/cost required to take the total fish quota while maintaining a target habitat stock. Although the model effectively implements a tax based system, it represent the outcome of a quantity based system since the tax is determined endogenously by the quantity of IHQs and the distribution of the habitat and fish stocks.
  • Keywords: closed areas, essential fish habitat, Theoretical and Empirical Bio-Economic Analysis, individual quota, Fisheries Economics, fisheries
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  • Holland, Daniel S., Kurt E. Schnier. 2004. Individual Habitat Quotas for Fisheries. Peer Review: No. In: Proceedings of the Twelfth Biennial Conference of the International Institute of Fisheries Economics & Trade, July 20-30, 2004, Tokyo, Japan: What are Responsible Fisheries? Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2004. CD ROM. ISBN 0-9763432-0-7
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