Management of the North Sea flatfish fishery: exploring alternative ITQ systems IIFET 2014, Brisbane, July 9 th 2014 K. G. Hamon, H. Bartelings, F. Buisman, J. A. E van Oostenbrugge, B. de Vos
The fishery 2 main species Plaice Sole
The fishery 2 main species 7 countries 50 52 54 56 58 60-2 0 2 4 6 8 10
2 main species 7 countries Beam trawls and demersal trawls The fishery
Individual quotas 1976 Managing the (Dutch) fishery 70 s introduction of individual quotas 1975 TAC decrease catch of sole 40% and plaice 10% intensified race for fish 1 st individual quotas in the world BUT TAC not really enforced Trade not allowed but happened
Managing the (Dutch) fishery Individual quotas 80 s enforcement and tradability Transferability allowed 1976 1985 TAC enforced 1988 Trade of quota officially allowed Landings monitored and controlled ITQ = valuable property rights feeling of ownership Enforcement
Managing the (Dutch) fishery Individual quotas 90 s co-management and buy-back Transferability allowed TAC enforced Comanagement groups Groups Decommissioning more efficient use schemes of quota Buy-backs helped decreasing fleet over-capacity 1976 1985 1988 1992 1992 1996 1998 2005 2008
Managing the (Dutch) fishery Individual quotas 2000 Long term management plan Transferability allowed TAC enforced Comanagement groups Decommissioning schemes Flatfish management plan 1976 1985 1988 1992 2009 1992 1996 1998 2005 2008 TAC on advised levels Sole and Plaice recovering
Managing the (Dutch) fishery Individual quotas Transferability allowed TAC enforced Comanagement groups Decommissioning schemes Flatfish management plan 1976 1985 1988 1992 2009 1992 1996 1998 2005 2008
ITQ and co-management Quota linked to vessels no external investors Trade intensified within groups how do constraints on the quota trading impact the fishery? Investigation using bio-economic model
Model Policy Price Biology Fleets Investment
Model description Bio-economic model of fisheries Multi-species Multi-fleet Spatially explicit Calculate the optimal effort allocation given that Total profit is maximized every year Quota can be traded (lease only) Within fleets (default) Between fleets of a country (National trade relative stability) Between fleets of all countries (international trade loose relative stability)
DE_DTS_1824 DE_TBB_1218 DE_TBB_1824 GB_TBB_24XX NL_TBB_1224 NL_TBB_2440 NL_TBB_40XX Cost shares Model description Economic module 7 fleets from NL, DE and UK as 70% defined in DCF data Cost structure from 2008-2010 30% 20% data Costs depend on the fishing area 100% 90% 80% 60% 50% 40% 10% 0% Revenue (value of landings) depends on catch composition Profit depends on renting quota other fixed cos crewcost fuelcost
Price module Model description 2010-2012 real prices used Then scenarios: 5% fuel price increase per year 5% fish price decrease per year Price elasticity for shrimp (price decreases when landings increases) and sole Price quota calculated as shadow prices (marginal increase of profit due to one extra ton of quota)
Entry-exit module: Model description Based on past profitability New vessels have same characteristics than current vessels (no introduction of new gears) Free access to the fishery (no licence or quota access limits)
Model description Stock-fleet interactions: Non linear relation between catch, effort, biomass: Cobb-Douglas function landings coverage by fleets: Plaice 54%, shrimp 84%, sole 69% Weight of species in fleet revenue 29 to 100% Potential shortcoming No change in selectivity (innovative gears) Other species taken as proportion of sole, plaice and shrimp Limited data to parameterise the Cobb Douglas function revenue (proportion) 1.00 0.75 0.50 0.25 percentage of landings 80 60 40 20 0 plaice shrimp sole species segment NL_TBB_40XX NL_TBB_2440 NL_TBB_1224 GB_TBB_24XX DE_TBB_1824 DE_TBB_1218 DE_DTS_1824 species other sole shrimp plaice 0.00 DE_DTS_1824 DE_TBB_1218 DE_TBB_1824 GB_TBB_24XX NL_TBB_1224 NL_TBB_2440 NL_TBB_40XX segment
Results What is traded? 4000 2000 tonnes 3000 2000 species PLAICE SOLE thousand euros 1500 1000 species PLAICE SOLE 1000 500 0 0 NATTRADE scenario INTTRADE NATTRADE scenario INTTRADE In weight plaice, in value sole
PLAICE SOLE PLAICE SOLE Results Who would trade with who? value exchanged (thousand euros) 2000 1000 0-1000 -2000-3000 2000 1000 0-1000 -2000-3000 NatTrade DE NatTrade NL 2015 2020 2025 2015 2020 2025 year value exchanged (thousand euros) 2000 1000 0-1000 -2000-3000 2000 1000 0-1000 -2000-3000 Inttrade ALL 2010 2015 2020 2025 year country DE GB NL DE_DTS_1824 DE_TBB_1218 DE_TBB_1824 NL_TBB_1224 NL_TBB_2440 NL_TBB_40XX
NATTRADE NATTRADE_FISH-5% INTTRADE INTTRADE_FISH-5% scenario Results How external factors affect the quota trade? Fuel price increase no demand for plaice Lower demand for sole Fish price decrease Decrease in demand for both sole and plaice tonnes 4000 3000 2000 1000 0 species PLAICE SOLE
SOLE Results How external factors affect the quota trade? Larger beam trawlers decrease their activity Lower demand for quota value exchanged (thousand euros) 2000 1000 0-1000 -2000-3000 NATTRADE NATTRADE_FUE5% 2015 2020 2025 2015 2020 2025 year NL_TBB_1224 NL_TBB_2440 NL_TBB_40XX
Conclusion Market driven by limiting species: sole Fuel & fish price changes will have high effect on trade Fleets with high fuel consumption particularly vulnerable Explain switch to alternative gears
Further work Rough quota trading model, need to be more dynamic Inclusion of new gears less fuel intensive Understanding the dynamics and opportunities to switch to alternative fisheries
Thank you for your attention katell.hamon@wur.nl