Measuring the value of ecosystem-based fishery management using financial portfolio theory
Itsaso Carmona,
Alberto Ansuategi,
Jose Chamorro,
Marta Escapa,
María Carmen Gallastegui,
Arantza Murillas and
Raúl Prellezo
Ecological Economics, 2020, vol. 169, issue C
Abstract:
We highlight the potential benefits of adopting Ecosystem-based Fishery Management (EBFM). We compare the EBFM implementation with the more traditional single-stock approach. We show the contribution of the portfolio theory to the EBFM, which can be achieved by selecting an optimal portfolio to maximise the average revenues and minimise the variance. We use this approach to construct two frontiers: the ecosystem efficient frontier, which considers stock interactions (the variance-covariance matrix), and the stock efficient frontier, only considering individual stock variances.
Keywords: Inshore fishery; Fishery management; Stock correlations; Risk gaps; Diversification (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:169:y:2020:i:c:s0921800919301429
DOI: 10.1016/j.ecolecon.2019.106431
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