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Current and Potential Economic Rent in the Namibian Hake Fishery

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  • We estimated the economic rent obtained currently (that is, in 2002) in the Namibian hake fishery and the rent that might potentially be obtainable if the fishery were managed optimally in the sense of economics. We first reviewed previous economic and biological studies. We then used the theory and model of Arnason [1] to estimate the current and potential rent in the Namibian hake fishery. Our estimates were that the current rent is 21 million USD (90% confidence interval in sensitivity analysis: 13-31) in 2002, with the potential for rent of approximately 112-118 million NAD (90% confidence intervals: 90-140 for logistic model and 84-135 for Fox model) annually if the fishery were managed optimally, i.e., with a much larger stock and a smaller fishing fleet. These estimates were particularly sensitive to some parameters, especially the cost parameter, but in general appeared to be fairly robust. Our estimate of current rent is roughly in line with previous estimates of the same number, while our estimate of potential rent is somewhat higher. We find that approximately 5-6 times greater wealth could be generated from this fishery if it were managed in a way closer to the economic optimum.
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  • Marsden, A. Dale and U. Rashid Sumaila. 2008. Current and Potential Economic Rent in the Namibian Hake Fishery. 12 pages. In: Proceedings of the Fourteenth Biennial Conference of the International Institute of Fisheries Economics & Trade, July 22-25, 2008, Nha Trang, Vietnam: Achieving a Sustainable Future: Managing Aquaculture, Fishing, Trade and Development. Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2008.
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  • US National Oceanic and Atmospheric Administration (NOAA) Fisheries Division, The Department of Fisheries and Oceans, Canada; Aquaculture CRSP and AquaFish CRSP; Minh Phu Seafood Corporation; Vietnam Datacommunication Company (VDC); Camau Frozen Seafood Processing Import Export Corporation (Camimex); Long Sinh Limited Company; Mai Linh Group and Nam Viet Corporation.
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