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Fishing for nutrients – economic effects of fisheries management targeting eutrophication in the Baltic Sea

Nielsen, Rasmus; Hoff, Ayoe; Waldo, Staffan LU ; Hammarlund, Cecilia LU and Virtanen, Jarno (2019) In Ecological Economics 160. p.156-167
Abstract

The Baltic Sea is one of the most eutrophied seas in the world, facing challenges with both hypoxia and algae blooms. In this study we analyse the effect of using different fishery policy instruments to reduce nutrient loads by removing fish biomass from the ecosystem. The study covers Danish, Finnish and Swedish pelagic fisheries. We distinguish between a private optimum maximising the net present value from fishing and a social optimum including the positive externality of removing nutrients. A dynamic bio-economic model, FishRent, is used to estimate the effect of three policy scenarios: Fisheries regulation using individual transferable quotas (ITQ); Economic compensation provided to fishers for reducing nutrients; and Environmental... (More)

The Baltic Sea is one of the most eutrophied seas in the world, facing challenges with both hypoxia and algae blooms. In this study we analyse the effect of using different fishery policy instruments to reduce nutrient loads by removing fish biomass from the ecosystem. The study covers Danish, Finnish and Swedish pelagic fisheries. We distinguish between a private optimum maximising the net present value from fishing and a social optimum including the positive externality of removing nutrients. A dynamic bio-economic model, FishRent, is used to estimate the effect of three policy scenarios: Fisheries regulation using individual transferable quotas (ITQ); Economic compensation provided to fishers for reducing nutrients; and Environmental regulation maximising sustainable catches. The results show that the highest social welfare gain is achieved by maximising catch volumes while having a flexible system for quota trade within the fishing sector. The social welfare gain from the positive externality of the extra fish landed in this case outweighs the private loss of not fishing at the optimal individual level (maximum economic yield).

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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Dynamic bio-economic modelling, Fisheries, Fisheries policy, Nutrient emission
in
Ecological Economics
volume
160
pages
12 pages
publisher
Elsevier
external identifiers
  • scopus:85062297935
ISSN
0921-8009
DOI
10.1016/j.ecolecon.2019.02.013
language
English
LU publication?
yes
id
0584e54d-45db-40ec-9ba9-af764a68a1be
date added to LUP
2019-03-12 11:08:35
date last changed
2019-04-02 04:15:09
@article{0584e54d-45db-40ec-9ba9-af764a68a1be,
  abstract     = {<p>The Baltic Sea is one of the most eutrophied seas in the world, facing challenges with both hypoxia and algae blooms. In this study we analyse the effect of using different fishery policy instruments to reduce nutrient loads by removing fish biomass from the ecosystem. The study covers Danish, Finnish and Swedish pelagic fisheries. We distinguish between a private optimum maximising the net present value from fishing and a social optimum including the positive externality of removing nutrients. A dynamic bio-economic model, FishRent, is used to estimate the effect of three policy scenarios: Fisheries regulation using individual transferable quotas (ITQ); Economic compensation provided to fishers for reducing nutrients; and Environmental regulation maximising sustainable catches. The results show that the highest social welfare gain is achieved by maximising catch volumes while having a flexible system for quota trade within the fishing sector. The social welfare gain from the positive externality of the extra fish landed in this case outweighs the private loss of not fishing at the optimal individual level (maximum economic yield).</p>},
  author       = {Nielsen, Rasmus and Hoff, Ayoe and Waldo, Staffan and Hammarlund, Cecilia and Virtanen, Jarno},
  issn         = {0921-8009},
  keyword      = {Dynamic bio-economic modelling,Fisheries,Fisheries policy,Nutrient emission},
  language     = {eng},
  pages        = {156--167},
  publisher    = {Elsevier},
  series       = {Ecological Economics},
  title        = {Fishing for nutrients – economic effects of fisheries management targeting eutrophication in the Baltic Sea},
  url          = {http://dx.doi.org/10.1016/j.ecolecon.2019.02.013},
  volume       = {160},
  year         = {2019},
}