The Role of Fisheries in Optimal Eutrophication Management

Antti Iho (), Heini Ahtiainen, Janne Artell, Outi Heikinheimo, Pirkko Kauppila, Anna-Kaisa Kosenius, Marita Laukkanen, Marko Lindroos, Soile Oinonen, Kimmo Ollikka, Katja Parkkila, Yulia Pavlova, Heikki Peltonen, Eija Pouta and Laura Uusitalo
Additional contact information
Antti Iho: Natural Resources Institute Finland (Luke), Viikinkaari 4, 00790 Helsinki, Finland
Heini Ahtiainen: Natural Resources Institute Finland (Luke), Viikinkaari 4, 00790 Helsinki, Finland
Outi Heikinheimo: Natural Resources Institute Finland (Luke), Viikinkaari 4, 00790 Helsinki, Finland
Pirkko Kauppila: #x2020;Finnish Environment Institute (SYKE), Mechelininkatu 34A, Helsinki, Finland
Anna-Kaisa Kosenius: #x2021;University of Helsinki, Yliopistonkatu 4, 00100 Helsinki, Finland
Marko Lindroos: #x2021;University of Helsinki, Yliopistonkatu 4, 00100 Helsinki, Finland
Soile Oinonen: #x2020;Finnish Environment Institute (SYKE), Mechelininkatu 34A, Helsinki, Finland
Kimmo Ollikka: #xA7;VATT Institute for Economic Research, Arkadiankatu 7, 00100 Helsinki, Finland
Katja Parkkila: #x2021;University of Helsinki, Yliopistonkatu 4, 00100 Helsinki, Finland
Yulia Pavlova: Natural Resources Institute Finland (Luke), Viikinkaari 4, 00790 Helsinki, Finland
Heikki Peltonen: #x2020;Finnish Environment Institute (SYKE), Mechelininkatu 34A, Helsinki, Finland
Eija Pouta: Natural Resources Institute Finland (Luke), Viikinkaari 4, 00790 Helsinki, Finland
Laura Uusitalo: #x2020;Finnish Environment Institute (SYKE), Mechelininkatu 34A, Helsinki, Finland

Water Economics and Policy (WEP), 2017, vol. 03, issue 02, 1-27

Abstract: We analyze dynamically optimal eutrophication management using two controls, targeted fishing and reduction of external nutrient loads. Fishing removes nutrients from the water ecosystem, and the size of the fish stock also influences eutrophication through food web effects and other mechanisms. We show that fisheries have a role to play in cost-efficient water quality management in combination with external load reductions. Our numerical application considers phosphorus driven eutrophication, agricultural phosphorus abatement and fisheries targeted on cyprinids on a coastal bay in the Baltic Sea. The socially and privately optimal intensity of fishing efforts, phosphorus abatement and the resulting water quality are influenced by damages, revenues and costs. Furthermore, we show that the link between cyprinid fish stock and water quality, and the form of the fishing industry — sole owner or open access — have joint dynamics that lead to very different outcomes. A weak link between cyprinid stock and water quality is associated with socially optimal stock close to its maximum sustainable yield. This maximizes phosphorus removal. With a strong link, socially optimal stock and phosphorus removal are low. Coincidentally, open-access fishing sometimes yields socially desirable outcome automatically — a market failure in industry structure may counteract eutrophication.

Keywords: Dynamic optimization; eutrophication; fisheries; phosphorus; agriculture (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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DOI: 10.1142/S2382624X16500314

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