Too many boats chasing too few fish: The collapse of the Atlantic groundfish fishery and the avoidance of future collapses through free market environmentalism

Abstract

On July 2, 1992 Canada’s fisheries minister banned cod fishing off the northeast coast of Newfoundland and off the southern coast of Labrador. Overestimated cod stocks creating exaggerated Total Allowable Catches, coupled with increased fishing capacity, lead to the depletion of the Atlantic cod fisheries. This crisis occurred in the context of strong government policy and management. The Atlantic cod and groundfish fisheries have yet to recover from this travesty of mismanagement. The state of the world’s fisheries faces the same dismal fate as the Atlantic groundfish fishery, suffering from what has become known as the tragedy of the commons. Establishing private property rights using methods such as individual transferable quotas is occurring in several parts of the world to avoid the tragedy of depleted fish stocks. Well defined property rights, through the implementation of individual transferable quotas, ensure that fisheries internalize the cost and benefits of management decisions. Individual transferable fishing quotas have proven effective to increase conservation efforts and reduce overcapacity, which is often produced with increased legislation. Individual transferable quotas are not only a viable solution for reducing overfishing and preventing stock collapses, but the best solution available.