Rents drain in fishery: the case of Lake Victoria Nile Perch fishery

Many fisheries are potentially very valuable. According to a recent report by the World Bank and the FAO (2008), global fisheries rents could be as high as US$ 40-60 billion annually on a sustainable basis. However, according to the report, due to the “common property problem”, most fisheries of the world are severely overexploited and generate no economic rents. The Lake Victoria Nile perch fishery could be among the most valuable fisheries in the world. Unfortunately, also this fishery has fallen prey to the common property problem with excessive fishing effort, dwindling stocks and declining profitability. As a result, there is a large and growing rents loss in this fishery (compared to the optimal) reducing economic welfare and economic growth opportunities in the countries sharing this fishery. As in other fisheries, the biological and economic recovery of this fishery can only come though improved fisheries management

Economic exploitation in the Philippine small pelagic fishery and implications for management

Causes and impact of the Philippine small pelagic fishery sector problems are presented together with the proposed solutions from fisheries and external sectors. The results of the biological and economic analysis of the small pelagic fishery in the Philippines lead to two conclusions: First, small pelagic fish stocks are subjected to levels of fishing effort far beyond that necessary to generate Maximum Sustainable Yield (MSY) let alone Maximum Economic Yield (MEY). Second, and as a result, both sectors are sustaining economic losses (negative economic rents) implying inefficiencies in the use of labor and capital in the small pelagic fishery. Solutions to the problems of overexploitation will rest not only within the fishery sector, but, more importantly, in sectors outside its traditional realm. The underlying causes of fisheries resource over exploitation are also discussed.

Management of mangrove areas in Calauag Bay, Quezon Province, Philippines

The findings are presented of a study conducted in Calauag Bay, Quezon Province, Philippines in order to estimate resource rent of mangrove areas converted to fishpond production. The rents were calculated based on the technology practised by the farmers and the prices of inputs and outputs that prevailed during the study period. The major causes of mangrove depletion are cutting of mangroves for fuelwood and charcoal and clearing for fishpond development. It was concluded that there is justification for the government to increase the feed which could be used to rehabilitate the inland-coastal fisheries to improve productivity and ensure sustainability of the ecosystem for future generations.

An Economic Analysis of Texas Shrimp Season Closures

Management of the Texas penaeid shrimp fishery is aimed at increasing revenue from brown shrimp, Penaeus aztecus, landings and decreasing the level of discards. Since 1960 Texas has closed its territorial sea for 45-60 days during peak migration of brown shrimp to the Gulf of Mexico. In 1981 the closure was extended to 200 miles to include the U.S. Exclusive Economic Zone. Simulation modeling is used in this paper to estimate the changes in landings, revenue, costs, and economic rent attributable to the Texas closure. Four additional analyses were conducted to estimate the effects of closing the Gulf 1- to 4-fathom zone for 45 and 60 days, with and without effort redirected to inshore waters. Distributional impacts are analyzed in terms of costs, revenues, and rents, by vessel class, shrimp species, vessel owner, and crew.