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

TY - JOUR

T1 - Fishing for nutrients - economic effects of fisheries management targeting eutrophication in the Baltic Sea

AU - Nielsen, Rasmus

AU - Hoff, Ayoe

AU - Waldo, Staffan

AU - Hammarlund, Cecilia

AU - Virtanen, Jarno

PY - 2019

Y1 - 2019

N2 - 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).

AB - 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).

KW - Dynamic bio-economic modelling

KW - Fisheries

KW - Fisheries policy

KW - Nutrient emission

U2 - 10.1016/j.ecolecon.2019.02.013

DO - 10.1016/j.ecolecon.2019.02.013

M3 - Journal article

AN - SCOPUS:85062297935

SN - 0921-8009

VL - 160

SP - 156

EP - 167

JO - Ecological Economics

JF - Ecological Economics

ER -