Fishing for nutrients – economic effects of fisheries management targeting eutrophication in the Baltic Sea
Cecilia Hammarlund and
Ecological Economics, 2019, vol. 160, issue C, 156-167
The Baltic Sea is one of the most eutrophied seas in the world, facing challenges with both hypoxia and algae blooms. In this study we analyse the effect of using different fishery policy instruments to reduce nutrient loads by removing fish biomass from the ecosystem. The study covers Danish, Finnish and Swedish pelagic fisheries. We distinguish between a private optimum maximising the net present value from fishing and a social optimum including the positive externality of removing nutrients. A dynamic bio-economic model, FishRent, is used to estimate the effect of three policy scenarios: Fisheries regulation using individual transferable quotas (ITQ); Economic compensation provided to fishers for reducing nutrients; and Environmental regulation maximising sustainable catches. The results show that the highest social welfare gain is achieved by maximising catch volumes while having a flexible system for quota trade within the fishing sector. The social welfare gain from the positive externality of the extra fish landed in this case outweighs the private loss of not fishing at the optimal individual level (maximum economic yield).
Keywords: Fisheries; Nutrient emission; Fisheries policy; Dynamic bio-economic modelling (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:160:y:2019:i:c:p:156-167
Access Statistics for this article
Ecological Economics is currently edited by C. J. Cleveland
More articles in Ecological Economics from Elsevier
Bibliographic data for series maintained by Haili He ().