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Evaluating the Impact of Rights-Based Fisheries Management: Evidence from the New England Groundfish Fishery

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Abstract
  • Cooperatives in the Rights-based Fisheries Management have the potential to overcome some of the limitations of Individual Transferrable Quotas. The New England groundfish sector management, a new regime under which fishermen can voluntarily form sectors with each sector constrained by a total allowable catch or Annual Catch Entitlement (ACE), is a good example to examine the effectiveness of decentralized collectives. We conduct a comprehensive analysis of the impact of the sector program on Technical Efficiency (TE), using detailed data at the vessel level. Combining Battese and Coelli (1995) and Caudill et al. (1995) to allow for maximum flexibility in modeling efficiency using a stochastic production frontier (SPF) method for the panel data, we compare TE before and after the program implementation. The results show that TE of New England groundfish fishery has improved 10.4% after sector management in 2010. The gains can be partially explained by restructuring of vessel composition since less efficient vessels exit and more efficient vessels stay. We also find that the average TE for the vessels that always stay across all years does increase by 9.8%, which cannot be simply explained by vessel structuring. Given the information, we explore other two mechanisms and find that after 2010, fishermen significantly specialize more in location choices, and vessels cooperate in choosing fishing locations in some sectors, but not in all of them. It turns out the impact of location specialization on TE is quite small.
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  • Huang, Ling, Subhash Ray, Kathleen Segerson, and John Walden. 2015. Evaluating the Impact of Rights-Based Fisheries Management: Evidence from the New England Groundfish Fishery. In: Proceedings of the Eighth Biennial Forum of the North American Association of Fisheries Economists, May 20-22, 2015, Ketchikan, Alaska: Economic Sustainability, Fishing Communities and Working Waterfronts. Compiled by Ann L. Shriver and Melissa Errend. North American Association of Fisheries Economists, Corvallis, Oregon, USA, 2015.
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  • Ketchikan, Alaska, USA
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  • Alaska Sea Grant, North Pacific Fishery Management Council, North Pacific Research Board, Northern Economics, Pollock Conservation Cooperative Research Center, Rasmuson Foundation, University of Alaska Fairbanks, School of Fisheries and Ocean Sciences, University of Alaska Southeast, Ketchikan
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