Cod today and none tomorrow: The Economic Value of a Marine Reserve

R. Quentin Grafton and Tom Kompas

Environmental Economics Research Hub Research Reports from Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University

Abstract: The northern cod fishery was once one of the world’s largest capture fisheries. Using data from the fishery, this research calculated the economic value of a marine reserve using a stochastic optimal control model with a jump-diffusion process. The analysis shows that, an optimal-sized marine reserve in this fishery would have prevented the fishery’s collapse and generated a triple payoff. Even if harvesting had been ‘optimal’ the profits from fishing would have been raised. The recovery time would also have decreased for the biomass to return to its former state and smoothed fishers’ harvests and profits. Following a negative shock, the chance of a catastrophic collapse would have been lowered. Key words: Marine reserves; Stochastic control; Fisheries

JEL-codes: C61 Q22 (search for similar items in EconPapers)
Date: 2009-03
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Citations: View citations in EconPapers (11)

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Related works:
Journal Article: 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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Persistent link: https://EconPapers.repec.org/RePEc:een:eenhrr:0922

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