Valuing Fisheries Depreciation in Natural Resource Accounting: The Pelagic Fisheries in Northeast Peninsular Malaysia

In this paper, an approach based onthe net present value method is used to account forthe changes in the value of fisheries resources. Changes in the value of fisheries resources can occurbetween successive years' catch as well as betweencurrent and optimal levels of catch. These changesneed to be accounted for in the national accountingsystem to reflect the `true' net national income thatis sustainable. The approach outlined in this paper isdesirable as it allows the estimation of thedepreciation value of fisheries resource with limitedbiological information. The application of theapproach to the pelagic fisheries in NortheastPeninsular Malaysia (NEPM) showed that the resourcedepreciated in value over most years from 1982 to1993. These depreciations correspond to increasedfishing effort. In addition, pelagic catches in NEPMfrom 1982 to 1993 were lower than the optimal levelsof catch due to overfishing. Thus policies aimed atreducing fishing effort can provide improvement inboth the potentially higher capital values of thefishery resource and the earning potentials of thefishing industry in NEPM.