Northwest Fisheries Science Center

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Document Type: Journal Article
Center: NWFSC
Document ID: 8476
Title: Development of the Pacific Groundfish Trawl IFQ Market
Author: Daniel S. Holland
Publication Year: 2016
Journal: Marine Resource Economics
Volume: 31
Issue: 4
Pages: 453-464
DOI: 10.1086/687829
Keywords: IFQ,markets,catch shares,multi-species
Abstract:


In multispecies individual fishing quota (IFQ) systems, in-season transferability of quota plays an important role since fishermen often need to acquire quota to balance incidental catch for which they hold insufficient quota.  The optimal utilization of quotas is thus dependent in part on development of an efficient quota market, but markets in multispecies IFQ fisheries develop slowly and may fail to perform efficiently even after several years. In 2011 an IFQ system was implemented for the Pacific Groundfish trawl fishery in the US. After four years, the quota pounds (QP) market does not appear to be yielding efficient prices for many species or distributing quota efficiently.  I explore the structure of the QP market and how it is performing and discuss the impediments to market efficiency. Drawing from theory and experience in other multispecies IFQ systems, I discuss other quota distribution and catch balancing mechanisms that can supplement and perhaps improve inefficient markets and enable higher quota utilization rates.

Description:

 The manuscript describes the structure of the Pacific Groundfish Trawl ITQ QP market and how it is performing and discuss the impediments to market efficiency. Drawing from theory and experience in other multispecies IFQ systems, I discuss other quota distribution and catch balancing mechanisms that can supplement and perhaps improve inefficient markets and enable higher quota utilization rates.

Theme: Ecosystem approach to improve management of marine resources
Foci: Describe the interaction between human activities, particularly harvest of marine resources, and ecosystem function.
Provide scientific support for the implementation of ecosystem-based management
Official Citation:

Holland, D.S. 2016. Development of the Pacific Groundfish Trawl IFQ Market. Marine Resource Economics. Marine Resource Economics 31(4):453-464. DOI: 10.1086/687829