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The Impact of Catch Shares on Fishing Income Diversification and Variation in Annual Revenue

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  • Many fishermen diversify their income by fishing in more than one fishery which can significantly reduce year-to-year variation in income. However, opportunities to diversify have become more limited as access to fisheries has become more restricted. The implementation of catch share systems could further reduce diversification if those who remain in a fishery consolidate catch privileges and specialize, and those who exit lose a component of their fishing portfolio. However, catch shares, particularly in the form of IFQs, offer individuals who had not been part of fishery the opportunity to enter by purchasing or leasing quota. Thus the net effect of catch shares on diversification is uncertain. Furthermore, for fishermen that remain in the catch share fishery, the secure privilege to harvest a set share of the TAC may provide opportunities to reduce variation in income offsetting increased risk associated with reduced diversification. Thus it remains an empirical question whether and how catch shares affect diversification and variation in income. We present an empirical study of diversification in 14 catch share fisheries with a diversity of species from different regions of the US, including both IFQs and cooperative-based catch share systems. For each of these fisheries we test whether diversification levels and trends in diversification changed after implementation of IFQs both for fishermen that remained in the catch share system and for those that exited but remained active in other fisheries. We also test whether variation in fishing revenues changed for fishermen in these groups.
  • Proceedings of the Eighteenth Biennial Conference of the International Institute of Fisheries Economics and Trade, held July 11-15, 2016 at Aberdeen Exhibition and Conference Center (AECC), Aberdeen, Scotland, UK.
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  • Challenging New Frontiers in the Global Seafood Sector: Proceedings of the Eighteenth Biennial Conference of the International Institute of Fisheries Economics and Trade, July 11-15, 2016. Compiled by Stefani J. Evers and Ann L. Shriver. International Institute of Fisheries Economics and Trade (IIFET), Corvallis, 2016.
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  • 0976343290

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