Individual Quota System Research Articles

Stakeholder perceptions and policy implications of voluntary and government-led individual quota systems in japanese fisheries co-management: A case study of purse seine fisheries in the sea of Japan

Co-management, a governance system in which governmental authorities and local communities share resource management responsibilities, is increasingly recognized worldwide for its potential to reconcile natural resource conservation with livelihood goals. This case study examines the perceptions of diverse stakeholders regarding the effects of introducing both voluntary and government-led Individual Quota (IQ) systems in Japanese fishery co-management, spanning governance, economics, sustainability, and social aspects. Employing an integrated mixed method approach, the study combines qualitative interviews and questionnaires with quantitative analysis of before-and-after catch data. After the introduction of the voluntary IQ system in 2017, 67 % of the stakeholders acknowledged improvements in overall performance. The favorable findings from various perspectives reflect not only the stakeholders' profound confidence in the system but also their satisfaction with the matured co-management process. However, qualitative results from the case also indicate that the government-led IQ system implemented since 2022 primarily imposes rigidity on the existing voluntary system, while failing to provide sufficient incentives for fishers to transition effectively. Effective incentives are essential, including increased transparency in resource management, greater flexibility in managing catch quotas, and facilitating consensus on the liberalization of fishing vessel sizes. Continuous evaluation is crucial, and the government-led IQ system should be adaptively improved.

The influence of new sustainable fisheries policies on seafood company practices and consumer awareness in Japan

Effective fisheries policy is critical to achieving sustainable transitions in the seafood industry. Here, we present a conceptual framework demonstrating how interactions between private sector actors, seafood consumers, and new fisheries policies can influence policy effectiveness. We then apply this framework to Japan, which recently implemented two new fisheries policies to develop sustainable fisheries: the Reformed Fisheries Policy (RFP), and a policy to reduce illegal, unreported, and unregulated (IUU) fishing. The former introduced an individual quota system based on total allowable catch and maximum sustainable yield. The latter altered rules around catch documentation to enhance traceability and transparency in the supply chain. Through interviews with companies involved in fishing tuna and importing mackerel, and surveys with seafood consumers, we investigate understandings of, opinions on, and responses to, these new policies. While the new policies led companies to change some of their operating and corporate sustainability practices, these were viewed unfavourably. Tuna fishing companies shared concerns around the RFP's inequitable quota allocations, believing quotas would reduce fisher incomes, company profits, and deter young people from entering the industry. Mackerel importing companies were unclear how to implement the new the Anti-IUU policy in their day-to-day operations. Meanwhile, consumer awareness on seafood sustainability was low. A lack of engagement between private sector actors, consumers, and policy makers was also evident, with greater communication and collaboration needed. Annual meetings, media campaigns, and partnerships with advocacy groups are recommended as ways to address this, to help ensure transitional change in Japanese fisheries is realised.

Not satisfactory, but still acceptable: Exploring socioeconomic incentives of individual quota systems in Japanese Pacific bluefin tuna fisheries from the management leaders’ perspective

The individual quota (IQ) system is a rights-based management system that has been implemented in many countries, despite its lack of quota transferability. The purpose of this study was to explore the incentives behind the introduction of a non-transferable IQ system from the management leaders’ perspective through comparative case study of three Japanese Pacific bluefin tuna (Thunnus orientalis) fisheries with different community units. In 2019–2020, process tracing was conducted through semi-structured interviews with fisheries management staff, prefectural governments, and fishing cooperative associations who play an important role in introducing the IQ system in each community. In each case, in order to set allocations and to manage catch quotas, local fishers could participate in the council or by attending meetings. With a high priority for complying with the defined PBF catch quotas, the IQ system was finally introduced, either as a standalone system or combined with other management methods. While the non-transferable IQ systems in the case studies were not necessarily selected as satisfactory, but still considered acceptable, our data suggests that socioeconomic incentives, including revenue improvement and ensuring equity, were important. These incentives were not triggered by the system per se, but were due to a well-functioning co-management system. Recently, there has been a shift from voluntary IQ systems to government-led ones based on the revised Fisheries Act. Future trends should continue to be monitored, as government-led systems have stricter rules that may hamper the socioeconomic incentives described above.

Individual Quota System for Anchovy Fishing and the Conservation of Hydrobiological Resources in Chimbote, Peru

The objective of this research was to determine whether the access regime and conditions for granting fishing rights; the allocation and duration of the quota system; fisheries control and control actions; and the monitoring, supervision, and sanction of regulatory breaches are the normative criteria of the system of individual quotas for anchovy fishing in direct human consumption to promote the conservation of hydrobiological resources, Chimbote, Peru, 2018. The research was applied, a non-experimental and descriptive correlational design. The sample was composed of National and Comparative Legislation, Doctrine, Jurisprudence, and Records specialized in fisheries issues; and by 30 fisheries experts: lawyers 25% and representatives of fishermen 25%, from the District of Chimbote. Two questionnaires were used for the variables under study. The results showed that the regulatory criteria of the individual quota system for anchovy fishing are 76.7% efficient in the conservation of hydrobiological resources; being Kendall's Tau-b test statistical contingency coefficient τ= 0.89, with a standard significance level of less than 1% (P < 0.01). It was demonstrated that the regime of access and conditions for granting fishing rights, the allocation and duration of the quota system, the actions of control and fisheries control, and the monitoring, supervision, and sanction of regulatory breaches are in 76.7% of the normative criteria of the individual quota system of anchovy fishing for direct human consumption to promote the conservation of hydrobiological resources being the statistical contingency coefficient of proof Kendall's Tau-b is τ= 0.89, with standard significance level less than 1% (P < 0.01). Likewise, the corresponding proposal was made for the regulation of the normative criteria of the individual quota system of anchovy fishing in direct human consumption to promote the conservation of hydrobiological resources, defining the parameters for their development and viability.

Use of passive acoustic monitoring to estimate fishing effort on artificial reefs in Alabama during the recreational red snapper fishing season

Estimating fishing effort is an important aspect of effective fisheries management for populations such as red snapper (Lutjanus campechanus) in the Gulf of Mexico. Monitoring effort, however, can be limited by where and when anglers can be easily observed, such as boat launches or aerial surveys. Passive acoustic monitoring (PAM) can be used to detect boat presence spatially and temporally, which can be used to infer fishing effort. In this study, we deployed PAM devices at multiple artificial reef sites (up to three at a time) in federal waters of the Alabama Reef Permit Zone during the recreational red snapper fishery in 2017 and 2018. Reefs at our deployment sites included multiple structure types (concrete and steel pyramid modules, bridge rubble reefs, chicken coops, and M1 tanks). Reef sites included a mix of publicly available reef coordinates (published reefs) and unpublished sites. To improve reliability of estimates of site-specific fishing activity from captured boat noise, we developed a method to automatically detect sounds indicative of idling vessels maintaining station (live-boating) near an artificial reef. Detections of boat gearshift sounds were consistent with our prediction that fishing effort would be reduced on unpublished sites, decrease as the season progressed, and show a strongly diurnal pattern. Counter to our prediction, fishing effort as measured by boat detections did not appear to differ between open and closed recreational fishing days at our sites, which may be partially explained by commercial fishers that operate on an individual quota system that allows for fishing on days closed to recreational fishers. Our results indicate that PAM in conjunction with this novel method could be an effective way to monitor daily and longer-term patterns of live-boating fishing vessel presence at specific artificial sites for the red snapper fishery in the Gulf of Mexico.

Feasibility of a single‐species quota system for management of the Malaysian multispecies purse‐seine fishery

AbstractMalaysian fisheries employ multiple measures to improve management; however, not all are well‐suited to the multispecies fisheries. As part of a pilot project, an individual quota system was introduced for the purse‐seine fishery off the East Coast of Peninsular Malaysia (ECPM), but no assessment of this particular measure nor the feasibly of its implementation has been confirmed. Therefore, this study analysed spatial and temporal patterns of purse‐seine fishing, by collecting catch composition data per landing and its fishing ground within three period fishery surveys between August 2017 and September 2018 at six different landing sites. Similarity and cluster analysis examined species composition and diversity to determine the feasibility of implementing a single‐species quota system in this multispecies fishery. Some overlapped of indices results and minor difference in catch composition were found due to changes in spatial and temporal fishing activities. However, no specific spatial or temporal patterns were discernible as structuring the fishing grounds used by purse‐seiners. The absence of patterns, using the available data, might be attributable to huge species aggregations and widely distributed and homogenously mixed fish stocks. Thus, it is likely impractical to manage species individually in such a multispecies fishery.

Harvesting strategies during a forecasted decline in the Newfoundland and Labrador snow crab fishery

A predicted and communicated decline in the Newfoundland and Labrador snow crab (Chionoecetes opilio) resource, the basis of the world’s largest snow crab fishery for two decades, has come to fruition. Given considerable lead time, this scenario creates an interesting dynamic to investigate how crab harvesters may have formed anticipatory behavioural responses to mitigate against the decline. In this analysis, economic, stock status, and vessel activity indicators are examined along with spatiotemporal fishing patterns before, during, and after the decline to assess harvester behaviour and fleet dynamics. We hypothesize that behaviours indicative of increased competition and a race to fish would emerge in response to the forecasted decline. Contrary to our expectations, we find no evidence of earlier or more rapid fishing, nor broader or more intense fishing patterns. Increased gear soak times were the most common adaptive response employed by harvesters, which were marginally successful in mitigating against declining catch rates and reducing discards. The majority of harvesters appeared to prosecute the fishery in a similar fashion as they historically had, and simply accepted reducing catch rates on known fishing grounds. Some historically dominant fishing grounds even became abandoned with little to no apparent adaptive responses by harvesters. Specific reasons for the general lack of behavioural adaptations to the forecasted fishery decline are unknown but are associated with an Individual Quota system, favourable product prices that have more than offset revenue losses from reduced catch, and small-scale management areas that may have rendered little or no capacity to develop adaptive strategies.

Thirty years of change and the future of Alaskan fisheries: Shifts in fishing participation and diversification in response to environmental, regulatory and economic pressures

AbstractHeterogeneity in human responses and decision‐making can contribute to the resilience of social–ecological systems in the face of environmental, political and economic pressures. In fishery systems worldwide, the ability of harvesters to maintain a diverse portfolio of fishing strategies is important for building adaptive capacity. We used a case‐study approach to examine the complexity of factors that inhibit or promote diversification in fisheries of Alaska, one of the major fishing regions of the world. Through a combination of harvest records and literature review, we explored shifts in participation and portfolio diversity in Alaskan fisheries over three decades. The four case‐studies examined the responses of fishers, fleets and communities to multiple, intersecting pressures, including biological declines, market and price dynamics, fishery privatization and the 1989 Exxon Valdez oil spill. These cases illustrate how stressors acting at multiple scales can encourage or constrain opportunities for diversification, and that these opportunities may be spread inequitably across participants. Overall, we found evidence for reduced participation and increasing specialization in Alaskan commercial fisheries. While numerous factors explain these trends, policies like individual quota systems and the increasing cost of entry into fisheries are forcing consolidation at local to regional scales. A portfolio approach to managing fisheries that reduces barriers to diversification and includes broad representation of resource users and communities in management may help to maintain opportunity and choice for fishers.

Optimal Management Under Institutional Constraints: Determining a Total Allowable Catch for Different Fleet Segments in the Northeast Arctic Cod Fishery

Many real world fisheries have an individual vessel quota system with restrictions on transferability of quota or entrance of new vessels into the fishery. While the standard economic reasoning is that these institutional constraints lead to welfare losses, the size of those losses and optimal second-best policies are usually unknown. We develop a dynamic bioeconomic model, in which a scientific body provides an optimal TAC given restrictions on (i) transferability between vessel segments and (ii) entrance of new vessels. Further, we also quantify welfare losses arising from not maximizing economic welfare, but physical yield—which is actually the case in many fisheries. We apply the model to the Northeast Arctic cod fishery, and estimate not only the cost and harvesting functions of the various vessel types, but also the parameters of the biological model as well as those of the demand function. This allows us to determine optimal second-best policies and quantify corresponding welfare effects for our case study fishery.

Social and economic consequences of 40 years of Dutch quota management

The Netherlands was one of the first nations to introduce ITQs in their fisheries to manage national yearly Total Allowable Catches (TACs). These ITQs have gradually developed from an individual quota system in 1976 to an ITQ system in the 1980s. In 1993 the system was reformed into a co-management system. In this paper it is argued that many of the usual negative socio-economic consequences of ITQs mentioned in the literature have been largely absent, due to the embeddedness of ITQs in co-management arrangements. However, cracks have appeared lately in this combined management system, allowing an identification of its vulnerabilities. These findings show that the social and economic structure of Dutch fisheries is changing from a rather cooperative to a more competitive and exclusive system, more like conventional ITQs.

The Icelandic fishing industry: Its development and financial performance under a uniform individual quota system

The Icelandic fishing industry has had to deal with reduced total catch for the past three decades. It has adapted well to the reduction and the Icelandic ITQ system has made this easier. The industry has adapted by reducing employment, closing factories and scrapping boats. Specialization has as well increased and the focus is more toward high-value markets. The profitability of the Icelandic fishing industry has markedly increased. This is especially true for the processing aspect of the industry where profits have soared. One of the main reasons for this increase is the ITQ management system. The rise in profitability of the fishing component, however, is considerably less than that of the processing part. This is the result of higher oil prices and the introduction of the fishing fee, and its subsequent increase, which is now a considerable expense for the fishing component of the Icelandic fishing industry. The debt levels of the industry reached a peak in 2008 after a massive escalation which began in 2004 and was mainly caused by the Icelandic financial bubble, 2004-2008, although the ITQ system also played a role here. Since 2008 the financial health of the industry has improved enormously. Currently, the financial situation of the Icelandic fishing industry is, on the average, sound; this particularly applies to the largest and smallest firms.

How a catch–quota balancing system can go wrong: an evaluation of the species quota transformation provisions in the Icelandic multispecies demersal fishery

Abstract Implementation of single-species catch limits in multispecies individual quota systems is problematic because it may incentivize discarding behaviour when quotas for some species limit catch of jointly caught species. Since discarding may reduce economic benefits and bias stock assessments, mechanisms that reduce incentives to discard can be beneficial. However, these mechanisms may be detrimental in the long term if they also pose a risk of stock depletion, which can occur if they enable catch to persistently exceed the total allowable catch (TAC). This study uses a bioeconomic model to analyse potential negative consequences of species quota transformation provisions, using the Icelandic individual transferable quota system as a case study. These provisions allow quota of one species to be transformed into quota of another species at specified rates related to relative market value. The system reduces the degree that the TAC of any particular species constrains catch of other species. However, it also allows catches of some species to exceed TACs, possibly leading to stock depletion. We explore how these provisions may affect long-term sustainability of individual species and profitability of the fishery as a whole. We focus on the extreme case of perfect targeting (i.e. full control of catch composition) to increase intuition on the potential for adverse effects of this system. Various combinations of species profitability are examined to determine attributes of species that lead to greater vulnerability, as well as interactions in species utilization. Consequences of changing harvest control rules are explored, and information needed to monitor for unintended consequences of such a system in practice are discussed. Although the species transformation system is designed to increase economic efficiency, our results show that it could lead to depletion in some cases, and may make it difficult to achieve optimal management goals.

Harvesting for food versus feed: a review of Peruvian fisheries in a global context

Peru is the top exporter of fishmeal and fish oil (FMFO) worldwide and is responsible for half and a third of global production, respectively. Landings of “anchoveta” (Engraulis ringens) are used nearly exclusively for FMFO production, despite a proactive national food policy aimed at favoring the direct human consumption of this inexpensive species. It may be surprising that in a country where malnutrition and caloric deficit constitute major issues, a low-priced and highly nutritious fish such as anchovy does not have stronger domestic demand as a food fish. Here, we review and assess eight potential politico-socio-economic processes that can explain this situation. The main explanation are dietary habits, the preference for broiler and the higher profit from anchovy sold as feed fish compared to its use as a food fish due to historically high FMFO prices, boosted by an increasing demand for aquaculture in a context of finite forage and trash fish resources. In addition, the recent introduction of an individual quota system has shifted bargaining power from processors to fishers, thereby increasing competition for the raw material. This competition results in an increase in anchovy prices offered by the feed fish industry due to its onshore processing overcapacity, which is detrimental to the food fish industry. In the end, although the dominant use of anchovy for fish feed is largely explained by integrating these market mechanisms and other minor ones, this use raises other issues, such as rent redistribution through public policies, employment, equitability and utility (low social costs), and resource management (threats to ecosystems or global change). Different policy scenarios are proposed in relation to these issues.

Reforming Fisheries: Lessons from a Self-Selected Cooperative

We analyze a policy experiment in an Alaskan commercial fishery that assigned a portion of an overall catch quota to a voluntary co-op, with the remainder exploited competitively by those choosing to fish independently. Unlike the individual quota system advocated by many economists, the policy encouraged coordinated fishing and did not require a detailed assignment of rights. We model the decision to join and behavior under cooperative and independent fishing. The data confirm our key predictions: the co-op attracted the least skilled fishermen, consolidated and coordinated effort among its most efficient members, and provided shared infrastructure. We estimate that resulting gains in rent were at least 33 percent. Some independents were disadvantaged by the co-op’s formation, however, which prompted them to oppose it in court. We analyze the source of their disadvantage and provide guidance for designing fishery reform that leads to Pareto improvements, enabling reform without losers.

The effect of temporal closures and individual quotas on fishing trip duration: a hazard function analysis

In this article, we assess the effect that two different fishery management regimes have on the duration of the fishing trip. A basic theoretical model predicts that trip duration should increase with temporal closures and decrease with an individual quota system. Therefore, we propose and apply an empirical trip duration model. Estimations are based on data for the pelagic fleet in central-southern Chile. Conforming to the theoretical predictions, the results indicate that temporal closures tend to increase trip duration, whereas individual quotas reduce it. Moreover, the regulatory regimes also affect the magnitude of the impact that other determinants have on trip duration. The results are consistent with increased efficiency in fleet operation under an individual quota system.

ITQ’s in Chile: Measuring the Economic Benefits of Reform

In 2001 an individual (operationally transferable) quota system was introduced for all the most important industrial fisheries in Chile. This system was put in place after years of declining stocks and over investment. In this paper we describe this reform and estimate related allocative efficiency benefits for the most important industrial fishery in the country, the southern pelagic fishery. Benefits were estimated using a bioeconomic model estimated using data for the 1985–2004 period. The estimated model was then used to generate simulated scenarios of the evolution of this fishery in a 20 year horizon with and without the ITQ system in place. The benefits of the reform can then be estimated by comparing the fishery’s costs in the scenarios with and without ITQs. This approach allows benefits to be estimated using more realistic counterfactual scenarios than just comparing the fishery before and after the reform. Estimated discounted net benefits reach US $166 million in the period 2001–2020. Fleet size fell from 149 active boats in 2000 to 57 in 2004 as a direct consequence of the reform. Among the interesting features of the Chilean experience is the way the political economy of the reform was facilitated by the prior introduction of de facto individual quotas within the framework of fishery experimental activities. When the authorities closed the southern pelagic fishery because of biological problems between 1997 and 2000, they organized ‘experimental’ fishing expeditions in which participant boats were given the right to fish a certain amount of resources per expedition. This pseudo quota system allowed fishermen to experience directly the benefits of individual quotas and that was instrumental to the political agreement leading to the reform. It is important to note that the Chilean southern industrial pelagic fishery has average catches of over 1.4 million tons a year, making it one of the largest fisheries in the world to be regulated by individual quotas.

MODELING A RIGHTS‐BASED APPROACH FOR MANAGING HABITAT IMPACTS OF FISHERIES

ABSTRACT. Limiting adverse consequences of fishing on essential fish habitat has emerged as a key fishery management objective. The conventional approach to providing habitat protection is to create MPAs or marine reserves that prohibit all or certain types of fishing in specific areas. However, there may be more cost‐effective and flexible ways to provide habitat protection. We propose an individual habitat quota (IHQ) system for habitat conservation that would utilize economic incentives to achieve habitat conservation goals cost‐effectively. Individual quotas of habitat impact units (HIU) would be distributed to fishers with an aggregate quota set to maintain a target habitat “stock.” HIU use would be based on a proxy for marginal habitat damage. We use a dynamic, explicitly spatial fishery and habitat simulation model to explore how such a system might work. We examine how outcomes are affected by spatial heterogeneity in the fishery and the scale of habitat regulation. We find that the IHQ system is a highly cost‐effective means of ensuring a given level of habitat protection, but that spatial heterogeneity and the scale of regulation can have significant effects on the distribution of habitat protection.

Protecting marine biodiversity: a comparison of individual habitat quotas and marine protected areas

Fisheries managers in the United States are required to identify and mitigate the adverse impacts of fishing activity on essential fish habitat (EFH). There are additional concerns that the viability of sessile noncommercial species, animals that are habitat dependent and (or) are themselves constituents of fishery habitat, may be threatened by fishing activities. We propose a system of individual habitat quotas (IHQ) to achieve habitat conservation and species protection cost effectively. Individual quotas of habitat impact units would be distributed to fishers with an aggregate quota set to maintain a target habitat "stock". Using a dynamic, spatially explicit fishery simulation model, we explore the efficiency and effectiveness of an IHQ policy versus marine protected areas (MPAs) for conserving habitat-dependent, sessile species of unknown spatial distributions. Our findings indicate that an IHQ policy with a conservatively established habitat target is better suited to the protection of sessile nontarget species than a rotating or fixed MPA policy.

Tracking flows of fisheries products: the case of Pacific halibut in the Canadian economy

Patterns of international trade may affect the sustainability of fisheries, and empirical studies of these effects would be facilitated by a better understanding of actual trade flows over time. We present a general conceptual model of flows of fisheries products, and apply it to examine the trade flows of Pacific halibut (Hippoglossus stenolepis) through the Canadian economy, as a pilot study for similar work at national and international levels. We present data on the flows of Pacific halibut into (landings and imports) and out of (exports) the Canadian economy from 1950 to 2001, in terms of quantity and value. We examine how the flows have changed over the study period due to several factors, including changes in biomass, the implementation of Exclusive Economic Zones, and the individual quota systems in BC and Alaska. We use our data to estimate annual Canadian consumption of Pacific halibut. Extending this approach to a broad range of species and countries will contribute to understanding how such flows are affected by fisheries management, how the benefits of fisheries and international trade in fisheries products are distributed within and between countries, and how international trade interacts with fisheries management to produce ecosystem effects and welfare gains or losses.

Derby Fisheries, Individual Quotas, and Transition in the Fish Processing Industry

Processors adapt to the pulse of landings in derby fisheries by investing in large-scale facilities capable of preserving and storing fish products. In fisheries where the pulse of landings suppresses the ability of processors to meet consumer demand for fresh product, the imposition of individual quota (IQ) systems transforms the associated fish processing industry. The cost of fresh fish processing is generally lower and more malleable than that for preserved fish, and consumers may pay a price premium for fresh product, which creates an opportunity for entry by fresh-fish processors and results in higher equilibrium ex-vessel prices. Incumbent firms are likely to experience an economic dislocation due to a diminished value of nonmalleable capital used to preserve and store fish products. Our paper generalizes and provides a modeling framework for the observed changes in the British Columbian halibut harvester/processor industry complex following the introduction of an IQ system.