Abstract
We investigate the role of potential regime shifts in Argentinean hake fishery and the inter-linkage between ecological and economic resilience. We develop a theoretical model incorporated with the hazard function for resource management under alternative conditions, and derive the corrective tax. Applying the model to the case of Argentinean hake fishery, we obtain insights for fishery management in the presence of risk for a regime shift. Based on three value functions, our model simulation indicates that the higher the relative loss from the fishery collapse, the more important the risk management would be with the resilience value taken into account. A higher level of fish stock leads to a higher optimized value and a lower corrective tax rate. When the stock level is lower, we need to introduce a higher tax rate to best avoid the fishery collapse. Decomposing the marginal value of the fish stock into a stock service value for fish production and a resilience value for flip risk reduction, we find that a higher fish stock leads to a lower tax rate because of the higher resilience of the fish stock, and hence the corrective tax rate as an instrument for managing fishery becomes less important.
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Notes
In this paper, we use the three terms regime shifts of fishery, fishery collapse and fishery flips interchangeably.
The difficulty of setting such a reference level is a general problem not limited to this particular study. See Cai et al. (2012) on climate thresholds.
The Matlab codes are available by request.
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Acknowledgments
The authors acknowledge the valuable comments from the two anonymous reviewers, which have greatly improved this paper. SV acknowledges the financial support from the Latin American and the Caribbean Environmental Economics Program (LACEEP), and a grant from the Galician Government (Consellería de Cultura, Educación e Ordenación Universitaria, Xunta de Galicia) (Grant \(\hbox {N}^{\circ }\) R2014/023).
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Li, CZ., Villasante, S. & Zhu, X. Regime Shifts and Resilience in Fisheries Management: A Case Study of the Argentinean Hake fishery. Environ Resource Econ 65, 623–637 (2016). https://doi.org/10.1007/s10640-016-0038-y
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DOI: https://doi.org/10.1007/s10640-016-0038-y