Cod Today and None Tomorrow: The Economic Value of a Marine Reserve

R. Quentin Grafton, Tom Kompas and Pham Van Ha

Land Economics, 2009, vol. 85, issue 3, 454-469

Abstract: Using data from what was once one of the world’s largest capture fisheries, the northern cod fishery, the economic value of a marine reserve is calculated using a stochastic optimal control model with a jump-diffusion process. Counterfactual analysis shows that with a stochastic environment an optimal-sized marine reserve in this fishery would have prevented the fishery’s collapse and generated a triple payoff: raising resource rents even if harvesting was "optimal"; decreasing recovery time for the biomass to return to its former state, smoothing fishers’ harvests and resource rents; and lowering the chance of a catastrophic collapse following a negative shock.

JEL-codes: Q22 Q57 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (13)

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Related works:
Working Paper: Cod today and none tomorrow: The Economic Value of a Marine Reserve (2009)
Working Paper: Cod today and none tomorrow: The Economic Value of a Marine Reserve (2009)
Working Paper: Cod Today and None Tomorrow: The Economic Value of a Marine Reserve (2005)
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