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Individual Transferable Quotas (ITQs) were introduced into the Mid-Atlantic Surf Clam and Ocean Quahog fishery to reduce over-capitalization while conserving clam populations. Because the number of operators in the fishery declined drastically since the introduction of this policy, there is concern about its effect on competitiveness. This paper ut...
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... 1 shows that the distribution of landings in the surf clam fishery became more equal over time. Similar results are obtained in the ocean quahog fishery (Figure 2). Gini Coefficients suggest that landings distribution became much more equal in the ocean quahog fishery since the implementation of the ITQ system. ...
Citations
... In the Norwegian context, Cojocaru et al. (2019) have investigated the landings of fish and argued for the existence of fishing industry clusters. While early stages of concentration may not give rise to market power (Adelaja et al. 1998), researches have highlighted how privatization could create social issues in the sector (Olson 2011;Carothers and Chambers 2012). We contribute to this literature on consolidation in fisheries by analyzing the effects of a transferable quota scheme in the Norwegian coastal cod fishery, with a particular focus on geographical consolidation and heterogeneous effects between different regulatory groups. ...
Balancing the trade-off between economic efficiency and social objectives has been a challenge for natural resource managers under rights-based management. While the actual prioritization should be guided by social preferences, the mechanisms and consequences of the quota transfer system need to be well understood. We investigate the effects of the quota transfer scheme implemented in the Norwegian coastal cod fishery in 2004. This is a small-scale fishery that has traditionally been important for employment in the northern part of Norway. Using vessel-level quota registry data, we estimate the effect of quota trading on vessel exit using a difference-in-differences approach that exploits variation in implementation timing between regulatory groups. In addition, we describe the outcome of quota consolidation with descriptive statistics. Our results confirm that the quota transfer scheme accelerates the exit of vessels from the fishery by at least 5% points in the short run. The descriptive analysis reveals great heterogeneity in both the size and geographic location of exiting vessels, suggesting that the scheme has distributional impacts. While the policy change has the expected effects in the short run, our results suggest that the implications of consolidation last longer. This has implications for policymakers trying to balance economic efficiency and social objectives of rational fishery management.
... A number of inequality indices were used to measure concentration in the French Atlantic harvesting sector: concentration ratios CR4, CR8, CR20 (e.g., Stewart and Callagher, 2011;Haas et al., 2016;MRAG et al., 2019), the Herfindahl-Hirschman Index (e.g., Stewart and Callagher, 2011;Abayomi and Yandle, 2012;Bellanger et al., 2016;Haas et al., 2016;MRAG et al., 2019), the Gini coefficient (e.g., Adelaja et al., 1998;Abayomi and Yandle, 2012;Sumaila et al., 2015;Bellanger et al., 2016;Haas et al., 2016;MRAG et al., 2019) and the Theil Index (e.g., Bellanger et al., 2016). The use of multiple concentration indices is intended to build a complete image of the degree of concentration in the fishing sector. ...
The aim of this PhD research is to provide a baseline study of who currently owns the means of production in the French Atlantic fishing sector, with a specific focus on the fishing vessels and associated fishing opportunities. This ‘who owns what’ question is approached from different angles which crystallize into four sub-questions: (1) what is the organizational structure of multi-vessel fishing firms and what are the main drivers behind their evolution?; (2) who ultimately owns the fishing capital?; (3) does concentration of fishing capital and production occur?; (4) has the fisheries management system created any injustices towards artisanal fishers in the way fishing opportunities (fishing rights) are allocated and redistributed?
The research finds that the commonly used ‘artisanal vs. industrial’ classification is unable to capture the organizational diversity of modern-day fishing firms. In fact, French Atlantic fishing firms have evolved into an array of types which currently coexist in a complex institutional environment. This environment, and most notably the quota management system, appears to have catered mostly to the needs of established fishing companies, while making it hard for young entrants and/or small-scale fishers to establish themselves. A moderate trend of concentration of production means and production is furthermore apparent in the French Atlantic fishing sector. Other than providing valuable insights into the ownership structure of the French Atlantic fishing industry, this PhD research contributes to the field of ownership analysis through the development of a methodological framework that can be readily applied to analyze ownership and concentration in the EU fishing industry.
... Rights-based fisheries management such as ITQs and their distributional effects have attracted, for a long time now, the most attention in this literature (Matthiasson, 1992;Guyader and Thebaud, 2001). Fewer studies have addressed equity of access using income inequality metrics, but again those that do, emphasize testing the effects of quota transferability (Adelaja et al., 1998;Connor, 2000;Hamon et al., 2009). If marginal costs of production are available, the most straightforward way to examine concentration is to compare prices for estimating the degree of monopoly power (Connor, 2000). ...
... If marginal costs of production are available, the most straightforward way to examine concentration is to compare prices for estimating the degree of monopoly power (Connor, 2000). The Concentration ratio can been used as the proportion of the market (or quota) share that certain firms hold (Adelaja et al., 1998;Connor, 2000). Other straightforward examples that have been used to measure concentration include the number and % of owners with 95% share, the % share controlled by the top 5% of owners and the number of owners with less than minimum holdings for the class (Connor, 2000). ...
... Other straightforward examples that have been used to measure concentration include the number and % of owners with 95% share, the % share controlled by the top 5% of owners and the number of owners with less than minimum holdings for the class (Connor, 2000). Other commonly used inequality metrics that measure market concentration and inequality resulting from implementation of ITQs include the Gini Index (GI) and the Herfindahl-Hirschman Index (HHI) (Adelaja et al., 1998;Connor, 2000;Hamon et al., 2009). ...
Canada has undertaken commitments to recognize the rights of Indigenous Peoples in fisheries through policies and agreements, including Integrated Fishery Management Plans, the Reconciliation Strategy, and Land Claim Agreements (LCAs). In addition to recognizing rights, these commitments were intended to respect geographic adjacency principles, to enhance the economic viability of Indigenous communities, and to be reflective of community dependence on marine resources. We examined the determinants of quota allocations in commercial fisheries involving Nunatsiavut, Northern Labrador, the first self-governing region for the Inuit peoples in Canada. It has been argued that current fishery allocations for Nunatsiavut Inuit have not satisfied federal commitments to recognize Indigenous rights. Indicators that measure equity in commercial allocations for the turbot or Greenland halibut (Reinhardtius hippoglossoides) and northern shrimp (Pandalus borealis) fisheries were identified and assessed. In these two cases, historical allocations continue to predominate for allocations based upon equity or other social or economic considerations. We illustrate equity-enhancing changes in the quota distribution under scenarios of different levels of inequality aversion, and we make qualitative assessments of the effects of these allocations to Nunatsiavut for socioeconomic welfare. This approach could benefit fisheries governance in Northern Labrador, where federal commitments to equity objectives continue to be endorsed but have not yet been integrated fully into quota allocations.
... The Gini coefficient is often used to assess distributional issues in rights-based commercial fisheries, such as individual transferrable quotas and individual fishing quota programs (Abayomi & Yandle, 2012;Adelaja et al., 1998;Brinson & Thunberg, 2016). We conducted a Gini coefficient analysis on revenue to assess the level of inequality in the revenue distribution among the Hawai'i longline fleet from 2002-2017, using revenue at the permit level, permit holder level, and permit applicant level. ...
Many global fisheries have transitioned to rights-based management to improve bioeconomic outcomes, but several fishing communities have experienced negative social impacts. Negative social impacts are often attributed to a focus on economic efficiency and resource sustainability, with less focus on the distributional equity among fishery participants. Among rights-based systems, limited entry has been used for over a century to reduce excess fleet capacity. In 1991, a limited entry permit system was initiated in the Hawai‘i longline fleet, following years of rapid growth. The Hawai‘i system did not set an ownership cap, which presented a natural experiment to examine distributional equity in the fleet over time. We examined permit ownership changes in the Hawai‘i longline fishery using 27 years of permit transactions, then linked it to logbook landings and commercial dealer data to examine revenue inequality using the gini coefficient. We also analyzed property rights components to better understand how institutional factors affected ownership changes. We found that three distinct permit ownership groups emerged and permits, landings, and revenue became increasingly consolidated among multiple permit owners. The gini coefficient indicated that how the fishery was analyzed significantly affected measures of revenue inequality. One measure indicated that revenue inequality in the Hawai‘i limited entry system was similar to other U.S. fisheries managed by catch shares. Without an ownership cap, distributional equity in the Hawai‘i longline fleet changed significantly over time. Our findings indicate that distributional equity should be considered prior to initiating rights-based transitions in other global fisheries
... Then it requires selecting appropriate metrics. The inequality metrics that are most commonly found in the fisheries economics literature typically measure inequality in the population as a whole (Hamon et al., 2009;Adelaja et al., 1998;Gauvin et al., 1994), and not much attention is paid to the inequality within and between subgroups of vessels (Armstrong and Clark, 1997). In particular, consideration of different scales offers insight for the analysis of distributional changes to the primary and secondary contributors to the fishery, which is essential in the context where large-scale and small-scale fisheries operate alongside one another using various fishing gears. ...
Quota allocation mechanisms have distributional effects that are highly relevant to the economic organization of fisheries. In France, where fishing allocations are non-transferable, quotas are shared among Producer Organizations (POs) based on the historical landings of their members. Each PO is then responsible for implementing their own internal rules that provide individual or collective allocations to their members. This study investigates the distributional effects of the various quota management systems adopted by POs on quotas and production for the Bay of Biscay sole fishery. A comparison between initial allocations by vessel based on historical landings and actual observed landings is presented. Inequality metrics are used to quantify distributional effects, and a new method that is based on the decomposability property of the Theil index is introduced. Results show that the French management system successfully avoided concentration of production while reducing the fishing capacity through decommissioning schemes. The non-transferability of fishing allocations is a critical element that favored this outcome by allowing POs to control the distribution of catch shares in the fishery. Besides, it appears that the allocation strategies developed by POs were notably influenced by their local roots and their fishing fleet profiles. The various quota allocation systems among POs had contrasting effects on vessels’ production, including greater equity within particular subfleets, benefits to vessels most dependent on sole in most POs, and benefits to the small-scale fisheries in a few POs.
... If the market is dominated by a single (or very few) buyers or sellers, price will favor the side with greater market power. As Adelaja et al. (1998) demonstrate, there is evidence that when property rights are allocated, the number of buyers in the fishery will decline drastically and there is a possibility that monopoly power will skew the distribution of benefits. ...
For fisheries to provide a strong economic foundation for the communities that depend on them, or to serve as catalysts for regional economic development, fisheries stakeholders, managers, researchers, NGOs and aid agencies must also be attentive to measurable outcomes. As the Blue Ribbon Panel (2013) asserted, assessing global fisheries’ performance along ecological, economic, and community dimensions is vital to understanding the current state of our resources and the progress brought about by reform.
This report presents an innovative set of Fishery Performance Indicators (FPIs) for evaluating and comparing the world’s fisheries management systems. These indicators are designed to evaluate the effectiveness of management systems at aligning ecosystem health and human well-being. The FPIs were developed in recognition of the fact that an effective management system is one that is ecologically sustainable, socially acceptable, and generates sustainable resource rents or profits.
... The Post-Harvest component reflects the extent to which a region has the economic and physical infrastructure available to enable the generation of sustainable livelihoods. The Markets & Market Institutions dimension captures the opportunities to generate income through sales of the fishery products, through competitive ex-vessel pricing [57][58][59] and through barriers to international high-value markets [60]. Under some conditions, access to high-value buyers through freely flowing competitive markets are critical to receiving the best prices [61], but in others access to these markets can be an avenue to exploitation [62]. ...
Pursuit of the triple bottom line of economic, community and ecological sustainability has increased the complexity of fishery management; fisheries assessments require new types of data and analysis to guide science-based policy in addition to traditional biological information and modeling. We introduce the Fishery Performance Indicators (FPIs), a broadly applicable and flexible tool for assessing performance in individual fisheries, and for establishing cross-sectional links between enabling conditions, management strategies and triple bottom line outcomes. Conceptually separating measures of performance, the FPIs use 68 individual outcome metrics-coded on a 1 to 5 scale based on expert assessment to facilitate application to data poor fisheries and sectors-that can be partitioned into sector-based or triple-bottom-line sustainability-based interpretative indicators. Variation among outcomes is explained with 54 similarly structured metrics of inputs, management approaches and enabling conditions. Using 61 initial fishery case studies drawn from industrial and developing countries around the world, we demonstrate the inferential importance of tracking economic and community outcomes, in addition to resource status.
... Restrictions on quota trade 20 There are empirical studies about the effect of ITQs on the market structure. Adelaja et al. (1998) investigate the mid-Atlantic surf clam and quahog fisheries for signs of monopoly power after implementation of an ITQ regime. They found a strong reduction in the number of fishing vessels but did not find evidence for monopoly power in the industry. ...
Fish stocks, as common pool resources, are more and more managed by giving fishermen exclusive access rights as Individual Transferable Quotas (ITQ). They have been widely discussed with focus on social, economic and ecological issues. While equity aspects have been of great concern, there is a very limited analysis about how to assess issues of equity and fair distribution when introducing ITQs. This paper applies an existing framework for assessing equity in resource use systems to tradable quota systems in fisheries. The framework defines the perspectives of distributive fairness, the stakeholders who are bound by fair practice rules, and instruments of fairness, and identifies metrics to assess equity in practice. We assess if the framework provides practical guidance for evaluating whether a given ITQ system operates under an equitable framework programme.
... As focus on the possible existence of imperfect competition has deepened, researchers have tested the existence of market power in fisheries product markets for Atlantic shellfish fisheries [4], UK salmon retailing [5,6], and cod, salmon, and shrimp in the UK's retail markets [7]. A related research topic concerns asymmetric price transmission (APT), which refers to the asymmetry in price transmission in a supply chain in that the speed or degree of price changes in one industry is not the same as that in another industry. ...
... Meanwhile, as the empirical models of market power are usually derived from economic theory, the findings of market power estimation are more relevant than those of APT. However, analyzing a given time period provides snapshot implications only [4], and ignoring the test for stationarity of time series may cause misleading estimations [7]. Jaffry et al. [5] and Fofana and Jaffry [6] tried to overcome these drawbacks by conducting time series analyses of theoretically derived models, although the empirical model is not exactly the same as the theoretical model. ...
This study analyzed the existence of imperfect competition, and the time period for which it existed in the supply chain of fisheries products in Japan from 1976 to 2009. An empirical analysis of the imperfect competition using a structural model robust to nonstationary time series revealed that sellers of horse mackerel, Japanese flying squid, and sardines in wholesale markets located in consumption areas had market power before 1993 in upstream markets. In downstream markets, retailers of horse mackerel and sardines had market power not only before 1993 but also after 1992, and retailers of Pacific saury and red seabream had market power before 1993. However, there were a number of periods when the detected imperfect competition was mostly less than that in upstream markets. The findings of this study are consistent with those of a previous study, which pointed out that sellers in wholesale markets lost negotiation power due to the emergence of large retailers, such as supermarkets, who buy directly from producers, trading companies, wholesalers at production sites, etc., especially after 1992. A comparison with another previous study indicates that market power and asymmetric price transmission are closely related.
... Of all long-lived bivalve molluscs, Arctica islandica (Linnaeus, 1767) is by far the most comprehensively studied species. It has been used in a variety of different disciplines including ecology (Beal and Kraus, 1989; Thórarinsdóttir and Einarsson, 1996; Lewis et al., 2001; Kilada et al., 2007; Ridgway et al., 2012), biology (Taylor, 1976; Oeschger and Storey, 1993; Morton, 2011; Strahl et al., 2011a ), shellfisheries management (Adelaja et al., 1998; Thorarinsdóttir and Jacobson, 2005; Harding et al., 2008), pollution monitoring (Palmer and Rand, 1977; Swaileh, 1996; Krause-Nehring et al., 2012), and gerontology (Abele, 2002; Strahl et al., 2007; Ridgway and Richardson, 2011). However, this species had its most significant impact in the field of paleoclimatology since it is the most effective archive for basin-scale, multicentennial and subannually resolved marine climate reconstructions prior to the instrumental era. ...
High-resolution environmental proxy data from the extratropical North Atlantic prior to the instrumental era are of critical importance to decipher processes and mechanisms of global change. In this regard, shells of the extremely long-lived bivalve mollusc, Arctica islandica (Linnaeus, 1767), have gained particular attention during the last decade because they serve as reliable, subseasonally resolved multi-proxy archives of environmental variability in that very region. With a lifespan of more than 500 years, A. islandica is the longest-lived solitary animal. Its shell grows periodically throughout life and contains distinct annual and daily growth increments. These growth patterns function as a calendar that can be used to place each shell portion into a precise temporal context. Furthermore, changing environmental conditions are encoded in the shells in the form of variable increment widths and geochemical properties. By means of cross-dating, growth increment width chronologies from different specimens can be combined into much longer time-series, so-called composite or master chronologies, covering centuries to millennia and many generations of bivalves.
The present paper provides a comprehensive review of research on this species with a special focus on long-term climate and environmental reconstructions using isotopes, trace and minor elements and variations in shell growth. This review also highlights challenges involved with the interpretation of proxy data obtained from A. islandica and identifies future research needs. A. islandica does not easily reveal its secrets. It needs a holistic approach to unlock the multi-proxy records stored in their shells. The goal of this paper is to increase the recognition of this high-potential natural archive and encourage future interdisciplinary research.
