Estimating the economic loss of recent North Atlantic fisheries management

It is accepted that world’s fisheries are not generally exploited at their biological or their economic optimum. Most fisheries assessments focus on the biological capacity of fish stocks to respond to harvesting and few have attempted to estimate the economic efficiency at which ecosystems are exploited. The latter is important as fisheries contribute considerably to the economic development of many coastal communities. Here we estimate the overall potential economic rent for the fishing industry in the North Atlantic to be B€ 12.85, compared to current estimated profits of B€ 0.63. The difference between the potential and the net profits obtained from North Atlantic fisheries is therefore B€ 12.22. In order to increase the profits of North Atlantic fisheries to a maximum, total fish biomass would have to be rebuilt to 108 Mt (2.4 times more than present) by reducing current total fishing effort by 53%. Stochastic simulations were undertaken to estimate the uncertainty associated with the aggregate bioeconomic model that we use and we estimate the economic loss NA fisheries in a range of 2.5 and 32 billion of euro. We provide economic justification for maintaining or restoring fish stocks to above their MSY biomass levels. Our conclusions are consistent with similar global scale studies.

Replacing rubber plantations by rain forest in Southwest China - Who would gain and how much?

The cultivation of rubber trees in Xishuangbanna Prefecture in China’s Yunnan Province has triggered an unprecedented economic development but it is also associated with severe environmental problems. Rubber plantations are encroaching the indigenous rainforests at a large scale and a high speed in Xishuangbanna. Many rare plant and animal species are endangered by this development, the natural water management is disturbed and even the microclimate in this region has changed over the past years. The present study aims at an assessment of the environmental benefits accruing from a reforestation project partly reversing the deforestation that has taken place over the past years. To this end a Contingent Valuation survey has been conducted in Xishuangbanna to elicit local residents’ willingness to pay for this reforestation program that converts existing rubber plantations back into forest. It is shown that local people's awareness of the environmental problems caused by increasing rubber plantation is quite high and that in spite of the economic advantages of rubber plantation there is a positive willingness among the local population to contribute financially to a reduction of existing rubber plantations for the sake of a partial restoration of the local rainforest. These results could be used for the practical implementation of a PES (Payments for Eco-System Services) system for reforestation in Xishuangbanna.