Skip to main content
Article thumbnail
Location of Repository

Evaluating the New Zealand Individual Transferable Quota Market for Fisheries Management

By Suzi Kerr, Richard Newell and Jim Sanchirico

Abstract

The New Zealand ITQ system is a dynamic institution that has had many refinements since its inception more than 15 years ago. Nonetheless, the basic tenets of the system - setting a total allowable catch and leaving the market to determine the most profitable allocation of fishing effort - have remained intact. This paper assesses the New Zealand system to identify areas of success and/or possible improvement or expansion within it. The reasons for doing so are to highlight beneficial features and to identify features of the New Zealand ITQ system that are relevant to other potential tradable permit markets. Beneficial features include simple standardized rules for quota definition and trading across species and areas; very few restrictions on quota trading and holding; relative stability in the rules over time; and low levels of government involvement in the trading process. We find evidence that supports the assertion that fishers behave in a reasonably rational fashion and that the markets are relatively efficient. We do not find major changes in participation in these fisheries as a result of the system. We find evidence that suggests that the ITQ system is improving the profitability of fisheries in New Zealand. In general the evidence thus far suggests that the market is operating in a reasonably efficient manner and is providing significant economic gains. These factors suggest that New Zealand would want to have non-economic justifications for any significant changes to the system.tradeable permits, quota, fisheries

OAI identifier:

Suggested articles

Citations

  1. (2002). A Regulatory History of New Zealand's Quota Management System" Chapters 1-4. Available at www.motu.org.nz
  2. (2003). Allocating Risks in a Domestic Greenhouse Gas Trading System. Motu Working Paper 03/01 Available at www.motu.org.nz
  3. (2002). An Empirical Analysis of New Zealand's ITQ Markets”. Paper presented at IIFET 2002: Fisheries in the Global Economy,
  4. Associates.(2002). “New Zealand commercial fisheries: the atlas of area codes and TACCs 2002/2003”. Clement & Associates,
  5. (2001). Indicators of the effectiveness of quota markets: the South East Trawl Fishery of Australia”.
  6. (1996). Industry and Government Negotiation: Communication and Change in New Zealand's Individual Transferable Quota System”. Pages 333-341. In
  7. (1992). ITQs in New Zealand - the Era of Fixed Quota in Perpetuity”.
  8. Kevin J.(2000) “Private Property and Economic Efficiency:
  9. (2000). Market Structure in a Rights-Based Fishery”.
  10. Ministry of Fisheries. (2001b) “Framework for Developing a Plan. Fisheries Plans Part A. Draft” Consultation Document, Ministry of Fisheries,
  11. (1999). Monitoring the Performance of Commercial Fisheries Policy”. Akroyd Walshe Ltd.,
  12. (1997). New Zealand Commercial Fisheries: The Guide to the Quota Management System”.
  13. (1996). New Zealand's ITQ System: Have the First Eight Years Been a Success or a Failure?” Reviews in
  14. (1999). New Zealand's Quota Management System: The First Ten Years”.
  15. (2001). Performance Indicators for Commercial Fisheries Policy” Confidential Final Report to Ministry of Fisheries.
  16. (1992). Putting Theory into Practice: Individual Transferable Quota in New Zealand's Fisheries”.
  17. (2000). Report from the Fishery Assessment Plenary,
  18. (1995). The Effects of Individual Vessel Quotas in the British Columbia Halibut Fishery”.
  19. (2000). Trends in Fishing Capacity and Aggregation of Fishing Rights in New Zealand Under Individual Transferable Quotas”.

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.