Optimal fisheries management and the response to price changes

Eric Nævdal

Resource and Energy Economics, 2024, vol. 79-80

Abstract: The literature on how price changes affect optimally managed fisheries is mostly concerned with how fish stocks and harvest rates are affected in steady state. There is little published on how prices affect optimal harvest rates at stock levels outside of steady state. Here we show the effect of an unanticipated and permanent price increase. It is shown that in a model of a pure schooling fishery, if the stock is below the steady state, it is optimal to harvest less if the price goes up and vice versa. It is also shown that in a model with stock dependent harvest costs, the optimal response to a price increase is to reduce the harvest rate for low stock levels even if the optimal harvest rate increases close to the steady state. Empirical relevance is demonstrated by illustrating the theoretical results in an estimated model.

Keywords: Fisheries; renewable resources; resource management; optimal control; comparative dynamics (search for similar items in EconPapers)
JEL-codes: C61 Q22 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:resene:v:79-80:y:2024:i::s092876552400037x

DOI: 10.1016/j.reseneeco.2024.101461

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