Highgrading in Quota-Regulated Fisheries: Evidence from the Icelandic Cod Fishery |
| |
| Authors: | Dadi Kristofersson and Kyrre Rickertsen |
| |
| Institution: | Dadi Kristofersson is a researcher in the Institute of Economic Studies, University of Iceland, and adjunct professor in the Department of Economics and Resource Management, Norwegian University of Life Sciences. Kyrre Rickertsen is professor in the Department of Economics and Resource Management, Norwegian University of Life Sciences. |
| |
| Abstract: | A model with nonlinear discarding costs is developed for a fishery with an individual transferable quota (ITQ) program. The model shows that limited hold capacity and ITQs provide incentives to discard fish. The model is applied to the Icelandic ITQ-regulated cod fishery to test for highgrading and to predict the discarded quantities of different grades of fish. The results indicate that vessels are involved in highgrading, but there is no evidence of quota price-induced highgrading. The predicted total discarded quantities are 4.7% and 2.7% of total landings for gillnet and longline vessels, respectively. These correspond well with official biometric estimates. |
| |
| Keywords: | cod discarding fisheries economics highgrading individual transferable quota |
|
