1. Quiz 6 Why do fishers use a high discount rate?
A. They are faced with immediate costs that cannot be put off to the future (e.g., boat payments)
B. The prices that they get at the dock are discounted from the prices that retailers receive
C. They are uncertain whether they will have access to rebuilt stocks
D. Fish populations grow at a slower rate than invested capital
If fishing is unprofitable at a global level, why does it persist? (a one word answer is fine)
Which of the following should increase the optimum investment in fishing?
A. A higher discount rate
B. Lower variability in quota
C. A higher price for fish
D. Lower operating costs

2. Fisheries Economics

3. Price varies $1.8 million – Bluefin tuna (489 pounds)
4 cents per pound - menhaden

4. Cost of harvest varies Ika shibi (handline)
fishing for tuna off Hawaii

5. Cost of harvest varies

6. Cost of harvest varies

7. Fuel, boat loans, permits, crew shares

8. The Gordon Model Only “normal” profit made
(wages + interest on capital)
Gordon 1954

9. Clark’s Blue Whales
Economic Rent: any payment to a factor of production in excess of the cost needed to bring that factor into production.
Present Value: a future amount of money that has been discounted to reflect its current value, as if it existed today. “A dollar today is worth more than a dollar tomorrow”
Discount Rate: the theoretical or observed rate at which someone discounts a future amount of money. Discount rate depends on the marginal opportunity cost of capital in alternative investments
Clark 1973 Science

10. Clark’s Blue Whales Blue whale – population growth rate: 4%
Real estate
interest rate: 9%
Savings bond
interest rate: 0.1%
Clark 1973 Science

11. BMEY > BMSY
Grafton et al Science

12. Economically optimal rebuilding: the “bang-bang” solution
Ecurrent
EMEY
Effort
Time

13. Fishery subsidies: the good, the bad, and the ugly
Beneficial
Fishery management
Marine protected areas
Fishery R&D
Capacity enhancing
Fuel subsidies
Boat construction subsidies (loan guarantees)
Port and processing infrastructure
Price and marketing support
Foreign access agreements (EU-ACP fishing agreements)
Ambiguous
Fisher assistance programs (payments during rebuilding) or retraining
Vessel buyback programs (spillover effects – Canadian cod boats transferred to Argentina).
Rural community development programs (mosquito netting used for fishing)
Sumaila et al. 2010

14. Recreational Fisheries Economics

15. Recreational Fisheries Economics