Record Details
ITQ Prices: What do they Reveal?
ScholarsArchive at Oregon State University
| Field | Value |
|---|---|
| Title | ITQ Prices: What do they Reveal? |
| Names |
Arnason, Ragnar
(creator) |
| Date Issued | 2014-07-07 (iso8601) |
| Note | Presentation |
| Abstract | ITQ systems generate ITQ prices. For any given ITQ-managed species there are typically two prices. One is for the annual (or seasonal) quota, the other is for the longer lasting ITQ-share. In well-functioning ITQ markets, these prices reveal important information about the fishery. In the single species framework, prices of annual quotas measure the current profitability of fishing and prices for ITQ-shares reflect the expected future profitability of fishing under the ITQ system. Trading arbitrage leads to a determinate functional relationship between the prices of annual quantity quotas and that of TAC-shares. In the multi-species framework, if the ability to select the species composition of the harvest is less than perfect, the information content of the ITQ-prices is much less straight-forward. For instance the price of annual quotas for a given species may, under not uncommon circumstances, far exceed its landings price or, alternatively, be approximately zero. This paper explores these issues. It derives explicit expressions ITQ prices under various circumstances including the multi-species context with imperfect selectivity, discarding possibilities and ITQ-noncompliance. To illustrate the issues, empirical data on ITQ prices in Iceland are presented. |
| Genre | Presentation |
| Topic | Fisheries Economics |
| Identifier | Arnason, Ragnar. 2014. ITQ Prices: What do they Reveal? In: Towards ecosystem based management of fisheries: what role can economics play?: Proceedings of the Seventeenth Biennial Conference of the International Institute of Fisheries Economics and Trade, July 7-11, 2014, Brisbane, Australia. Complied by Ann L. Shriver & Melissa Errend. Corvallis, OR: International Institute of Fisheries. |
