Disentangling Effects of Policy Reform and Environmental Changes in the Norwegian Coastal Fishery for Cod

Florian Klaus Diekert and Tore Schweder

Published in:

Land Economics, Volume 93, Issue 4, pp. 689-709, November 2017

DOI: 10.3368/le.93.4.689

Abstract:

We construct a detailed bioeconomic model of the Norwegian coastal cod fishery. This fishery has been open access up to the policy change during the “cod crisis” of 1989/1990. To answer to what extent the subsequent increase in biomass and profits was due to improved management, we isolate the effect of environmental variability. Projecting stock and harvest forward in the counterfactual scenario of no intervention, we show that the policy had a small positive impact on biomass, but a pronounced positive effect on profits. The main drivers of profit gains are increases in productivity and savings in fuel and labor costs.

Published Dec. 1, 2017 3:21 PM - Last modified Dec. 1, 2017 3:21 PM