Economic evaluation of MSY-based fishery policy using input-output table: A case study of squid-related industries in Hakodate City, Japan

Abstract

This study evaluates the regional economic impact of the MSY-based fishery policy on the squid industry, specifically in case of the Japanese flying squid (Todarodes pacificus) in Hakodate-city, Hokkaido Prefecture by coupling ecological-economic modeling. The results show that a 10-year MSY-based squid fishery in Hakodate would have an economic ripple effect of approximately −0.085 billion JPY in the case of normal recruitment, and 0.061 billion JPY in the case of low recruitment both in the present value with 4% annual discount rate. In the viewpoint of percentage, they are less than 0.3% of the economic ripple effects of the conventional fisheries, which indicates that the economic impact of MSY-based fisheries is not that significant. In addition, the decreased catch values during the first five years are so huge that the total present value of the MSY-based fishery is negative in the normal recruit scenario. This suggests that MSY-based fisheries are effective in dealing with the risks of low recruitment and requires long perspectives on policy implications. This study also recommends high-level bilateral dialogue between Japan and China on squid fishery management to decrease the uncertainty on the stock assessment.