Course description: This course introduces the main economic principles and methods used to analyze commercial and recreational fishery management issues. The course covers both conceptual and methodological topics as well as recent policy applications. The first part of the course offers an introduction to the principles of micro-economic theory, focusing on efficient resource allocation. Building on these principles, we develop bioeconomic models to illustrate the interactions between the harvesting sector, resource and environment. Next, we examine the biological, economic, and social performance of management regulations and the economics of the recreational fisheries. Last, we explore a number of contemporary fishery management challenges.

Course objectives: The course has three objectives. The first objective is to provide an understanding of economic principles and current fisheries management issues. The second objective is to develop analytical skills (in particular, economic intuition) to explore fishery management problems. The last objective is to learn to analyze fisheries management issues systematically.
Textbooks and required readings: There are no required textbooks for this course. However, students are responsible for the required readings on the attached list and for additional readings as announced in class.

Useful reference texts:
The Economics of Fisheries Management, Johns Hopkins University Press, revised and enlarged edition, 1986, by Lee G. Anderson.
Mathematical Bioeconomics: The Optimal Management of Renewable Resources (2nd edition), New York, Wiley, 1990, by Colin W. Clark.
Bioeconomic Analysis of Fisheries. Oxford, Fishing News Book, 1993, by R. Hannesson.
The Economics of Natural Resource Use (2nd edition). Reading, Massachusetts Addison-Wesley, 1998, by J. Hartwick and N. Olewiler.
Fishing Grounds: Defining a New Era for American Fisheries Management by Hanna et al. Island Press, 2000.
Fish, Markets, and Fishermen: The Economics of Overfishing by Iudicello, Weber, and Wieland. Island Press, 1999.

Grading policy: Grades will be based on
 

Two exams (20% each)	40%
Five homework assignments (4 % each)	20%
Research paper and presentation	30%
Class participation	10%
Total	100%

 40 %

A= 90-100%, B=80-89%, C=70-79%, D=60-69%, F<60%

Make-up examinations will be given in extraordinary circumstances and only if arranged at least one week in advance. There will be no final examination.

Five assignments will be handed out. You will have a week to complete these assignments. In fairness to other students, late assignments will be penalized 1/3 grade for each day or partial day past the due date. Assignments handed in more than 5 days after the due date will not be accepted. Students are encouraged to work together solving homework assignments; however, you must turn in your own work. Academic misconduct will result in an F and any other disciplinary actions as outlined in UM’s academic catalog.

A research paper of 10-15 pages (typed, double spaced) will also be required. To help you focus on the research paper, a one page proposal with at least three references should be submitted by October 19. The paper should contain the following components:
a) Identification and explanation of the policy issue(s) of economic concern,
b) Description of the fishery and users,
c) Analysis that explains the current economic thinking and approaches to the problem, demonstrates a sound rational for the selection for analytical approach/policies, and evaluates policy options and their consequences, and
d) Conclusion with policy recommendations.
The use of graphical analysis is strongly encouraged. Quantitatively inclined students are encouraged to replicate existing bioeconomic models or develop their own bioeconomic models.  Papers will be due on December 2. Depth of thought, clear, and succinct writing will be rewarded. Students will give their presentation and answer any questions regarding their analysis and findings during the last week of class. The presentation should last approximately 20-25 minutes.

To encourage participation, students will be asked to lead the discussion on the assigned materials. Every student is expected to be prepared to contribute meaningfully to every class session.

Important Dates
 
 
 

Exam	Due
Exam I	October 12
Exam II	November 23
Research Paper Proposal	October 19
Class Presentation	Nov 30 or December 2
Paper Due	December 2

 

Tentative Schedule
 
 

Date	Topic	Required
	Course Orientation and Logistics
Week 1-2	Global, national and local fisheries: status and issues	Iudicello,Weber, and Wieland, Chapter 1  Hanna et al, Chapters 1, 2 Video in class Empty Oceans, Empty Nets
	Micro-economic theory review	Parkin, Chapters 3, 4, 6, 11 and 12. Simpson, R. D, 1998. Economic Analysis and Ecosystems: Some Concepts and Issues. Ecological Applications, Vol. 8, No.2, pp. 342-349.
Week 3-4	Static single-species bioeconomic models	Hardin, Garrett, 1968. The Tragedy of the Commons, Science, Vol.162, pp. 1243-1248. D. Ludwig, R. Hilborn and C. Walters. "Uncertainty, Resource Exploitation and Conservation: Lessons Learned" Science Vol. 260 pp. 17 & 36. Apr 2, 1993. Nov. 21. Iudicello, Weber, and Wieland (IWW), Chapters 2, 3  Hartwick and Olewiler, Chapter 4Gordon, H. S., “The Economic Theory of a Common-Property Resources: The Fishery,” Journal of Political Economy, Vol. 62, 1954, pp. 124-142.
Week 4	Dynamic single-species bioeconomic models	Hartwick and Olewiler, Ch. 11 (pg. 351-371) Clark, C.W., 1990. Chapter 3 (pp. 68-73). In: Mathematical Bioeconomics: The Optimal Management of Renewable Resources (2nd edition) Holland, D.S., and J.G. Sutinen, 2000. Location Choice in New England Trawl Fisheries: Old Habits Die Hard. Land Economics, Vol. 76, No. 1, pp. 133-149.
Week 5	Multispecies bioeconomic models and by-catch	Alverson, D., 1997. Global Assessment of Fisheries Bycatch and Discards: A Summary Overview. Pp 115- 125 Marasco, R. and J. Terry. 1982. Controlling incidental catch. An economic analysis of six management options. Marine Policy (April 1982):131-139. Clark, C.W., 1990. Chapter 10 (pp. 310-316). In: Mathematical Bioeconomics: The Optimal Management of Renewable Resources (2nd edition)
Week 6	Public regulation of commercial fisheries	Hartwick and Olewiler, Chapter 5IWW, Chapter 5
Week 6-7	Input controls and technical measures	Crutchfield, J.A., 1979. Economic and social implication of the main policy alternatives for controlling fishing effort. Journal of Fisheries Research Board Canada. Vol. 36, pp. 742-752. Boude, J. et al, 2001. Regulating access to fisheries: learning from European experiences. Marine Policy 25, pp. 313-322. Townsend, R. E., Entry Restrictions in the Fishery: A Survey of the Evidence, Land Economics, Vol. 66, pp. 359-378. Larkin, S. L. and J. W. Milon, 2000. Tradable Effort Permits: A Case Study of the Florida Spiny Lobster Trap Certificate Program.  Proceedings of IIFET 2000. Holland, D. E. Gudmundsson, and J. Gates. 1999. Do fishing vessel buyback programs work? A survey of the evidence. Marine Policy 23(1):47-69.
Week 8	Habitat and marine protected areas Guest Speaker: Dr. Jim Bohnsack	Videos on MPAs.NRC, 2001. Societal values of Marine Reserves and Protected Areas. In: Marine Protected Areas: Tools for Sustaining Ocean Ecosystems. Sanchirico, J., 2000. Marine Protected Areas: Can They Revitalize Our Nation's Fisheries? Resources 140, pp. 6-9, Summer 2000.   Sanchirico, J., 2000.   Marine Protected Areas as Fishery Policy: A Discussion of Potential Costs and Benefits. Resources For the Future Discussion Paper 00-23-REV. May 2000, Revised November 2000 Carter, D., 2003. Protected areas in marine resource management: another look at the economics and research issues. Ocean and Coastal Management. Vol. 46, pp. 439-456. Pendleton, L., 1995. Valuing coral reef protection. Ocean and Coastal Management. Vol. 26, No. 2, pp.199-131.
Week 9	Property Rights and Output controls Guest Speaker: Dr. Bob Trumble	Macinko, S. and D. Bromley, 2002. Who owns America’s fisheries?  Center for Resource Economics. Covelo, CA. Squires, D., J. Kirkley, and C. A. Tisdell.  1995. Individual Transferable Quotas as a Fisheries Management Tool.  Reviews in Fisheries Science, 3(2): 141-169. Copes, P. A Critical Review of the Individual Quotas as Device in Fisheries Management, Land Economics, Vol. 62, 1986, pp. 278-291. McCay, Bonnie et al., 1995. Individual Transferable Quotas in Canadian and US Fisheries. Ocean and Coastal Management Vol. 28(1-3). Pp. 85-115.  Holland, D. and J. C. Ginter, 2001. Common property institutions in the Alaskan groundfish fisheries. Marine Policy. Vol. 25, pp. 33-42.IWW, Chapter 6
Week 10	Co-management Guest Speakers: Dr. Brent Stoffle and Ms. Cara Dickman	Nielsen, J. et al. 2004. Fisheries co-management- an institutional innovation? Lessons from SE Asia and Southern Africa Marine Policy Vol. 28, pp. 151-160. Allison, E. and F. Ellis, 2001. The livelihoods approach and management of small-scale fisheries. Marine Policy Vol. 25, pp. 377-388. Scott, A., 1993. Obstacles to Fishery Self Government. Marine Resource Economics, Vol. 8, pp. 187-199. Stoffle, B.W. et al. Folk management and conservation ethics among small-scale fishers of Buen Hombre, Dominican Republic. Dubbink, Wim, and Martijn van Vliet, 1996.  Market Regulation versus Co-management? Two perspectives on regulating fisheries compared, Marine Policy. Vol.20, No.6. pp. 499-516. Evaluating Fishery Management Performance Sutinen, J. G. 1999. 'What Works Well and Why: Evidence from Fishery Management Experiences in OECD Countries,' ICES Journal of Marine Science, 56: 1051-1058. McGoodwin, J.R., Crisis in the world’s fisheries. Chapters 9, 10, and 11.
Week 11	Public regulation of recreational fisheries Guest Speaker: Dr. David Carter	Turner et al, 1992. Valuing concern for nature. In: Environmental Economics. Prentice Hall. Blamey, R., 2002.Recreational Sector. In: Valuing Fisheries: An Economic Framework. T. Hundloe (ed). University of Queensland Press. Green, T. G., 1994. Allocation Between Commercial and Recreational Sectors in Stressed Marine Fisheries, Society and Natural Resources, Vol. 7, No. 1, pp. 39-56. Edwards, Steven F, 1991. A Critique of Three 'Economics' Arguments Commonly Used to Influence Fishery Allocations, North American Journal of Fisheries Management, Vol. 11, No. 2, pp. 121-130.
Week 12	Enforcement and compliance	Coral Reefs Herman, .S.J., 2000. Coral Reefs: Their functions, threats, and economic value In: Collected Essays on the Economics of Coral Reefs. Editor: S.J. Cesar. Cordio, Sida, Sweden. Gustavson, K. and R. M. Huber, 2000. Ecological Economic Decision Support Modelling for the Intergrated Coastal Zone Management of Coral Reefs. In: Collected Essays on the Economics of Coral Reefs. Editor: S.J. Cesar. Cordio, Sida, Sweden. Moberg, F. and C. Folke, 1999. Ecological Goods and Services of Coral Reefs Ecosystems. Ecological Economics, Vol. 29, Vol. 215-233.
Week 13	Exam II
Week 13-14	ThanksgivingStudent Presentations and papers