A Model of the Market for ITQ in Australia's Multispecies South East Fishery
By S. Bose, H. Campbell, and A. McIlgorm
ABSTRACT
Around 100 commercial fish species are utilized by the trawl sector of the Australian South East Fishery, of which sixteen major species were brought into an ITQ management system in 1992. A revenue function approach is used to analyse catch, price and effort data for the period 1990-96, and to develop a set of individual vessel supply curves for quota species, and demand curves for quota. The latter, together with the quota supply constraints are used to predict market prices of leased quota. Predicted market prices are zero for half of the quota species, suggesting that TACs in these species are not binding constraints. When the predicted prices are compared with observed quota prices it is found that the market under-prices (over-prices) quota in species for which the TAC is found to be binding (not binding).
KEYWORDS: ITQ Quota Market Multispecies Fishery
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