Mechanism design for the optimal allocation of quatos and the determination of the total allowable catch for EU fisheriea under an age structured model

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2012
Kanık, Zafer
In this study, we consider the mechanism design problem for the optimal allocation of fishing quotas at different total allowable catch (TAC) levels. An age-structured fish population model is employed. Fishing technologies are embedded in the economic model as a key determinant. As a result, we showed that the quota allocation mechanism is important to minimize the impact of fishing on total fish biomass or achieve maximum sustainable yield (MSY). Moreover, we indicated technology-based optimality conditions for allocation of quotas at different TAC levels, which minimize the impact of fishing on total fish biomass or enable us to achieve MSY. Under the consideration that the fishermen fulfill their remaining quotas through capturing untargeted (less revenue-generating) fish after the targeted fish population is fully caught, the fix ratio of the catch of targeted fish to untargeted fish is not valid anymore. Concordantly, we indicated technology-based optimal quota levels, including the interior solutions. In the EU, TACs are distributed among states according to the principle of ‘relative stability’ which prescribes that the fishing quotas should be allocated based on historical catches of the EU states. In this context, rather than allocating the quotas based on historical catches, our main suggestion is that the structure of the fishing industry should be considered for allocation of quotas to provide the sustainability of EU fisheries and achieve responsible and effective management of the fishing industry in the EU.
Citation Formats
Z. Kanık, “Mechanism design for the optimal allocation of quatos and the determination of the total allowable catch for EU fisheriea under an age structured model,” M.S. - Master of Science, Middle East Technical University, 2012.