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Limited Entry Licensing and Adaptive Management: Insights from Duration Modeling

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  • Although many fisheries around the world have long required explicit licensing for fishery participants, the use of limited entry licensing to control fishing effort has become a common practice in the last two decades. In contrast to Individual Fishing Quotas (IFQs), limited entry is only a step towards rights-based management. The divergence between limited entry and optimal rights-based outcomes will hinge on the input substitution prospects of limited entry licensees and the evolving aggregate fishing power of the fleet. This paper analyzes fleet composition and attrition in an actual limited entry fishery, the California red sea urchin fishery. The paper explores heterogeneity in catch and revenue and how this heterogeneity evolves dynamically. It then uses duration analysis to study individual fisherman attrition. Finally, the paper discusses how fishery managers can adopt an adaptive management framework to use limited entry licensing as well as possible when they are unable to implement more comprehensive rights-based management.
  • KEYWORDS: adaptive management, Future Paths for Rights Based Fisheries Management, Fisheries economics, duration model, limited entry
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  • Smith, Martin D. 2002. Limited Entry Licensing and Adaptive Management: Insights from Duration Modeling. In: Proceedings of the Eleventh Biennial Conference of the International Institute of Fisheries Economics and Trade, August 19-22, 2002, Wellington, New Zealand: Fisheries in the Global Economy. Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2002. CD ROM.
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