Zafer Kanık Supervisor: Assist. Prof. Dr. Serkan Küçükşenel

MECHANISM DESIGN FOR THE OPTIMAL ALLOCATION OF QUOTAS AND THE DETERMINATION OF THE TOTAL ALLOWABLE CATCH FOR EU FISHERIES UNDER AN AGE-STRUCTURED MODEL Zafer Kanık Supervisor: Assist. Prof. Dr. Serkan Küçükşenel September, 2012| Z. Kanık| 1

Outline • Dynamics of management of fisheries and concerns about fisheries • The Common Fisheries Policy (CFP) and EU Fisheries • Rights - Based Management (RBM) Systems • Total Allowable Catch (TAC) • Relative Stability • Maximum Sustainable Yield (MSY) • Aim and Scope of the Thesis • Define the population model • Describe the mechanism for allocation of quotas • Minimize the impact of fishing • Achieve MSY September, 2012| Z. Kanık| 2

Overview • What are the concerns about fisheries? • Overfishing and overcapitalization • -Europe suffers from overfishing at a higher rate than world average.29 of 33 most important commercial fish stocks in Europe were overfished. Hence, management of fisheries gains more importance in the EU. • True determination of TAC and efficiently allocation of quotas under an output rights system. • - TACs are the maximum amount of catch allowed for that year. • Achieving MSY • MSY is the maximum amount of catch while protecting fish capacity by sustaining regeneration in the future. September, 2012| Z. Kanık| 3

The CommonFisheriesPolicy(CFP) and EUFisheries • The CFP, one of the effective fisheries policies globally, has been used for providing sustainability and efficiency of EU fisheries and finding long-run solutions to the EU fishing industry. • In the next CFP reform, MSYand transferable fishing concessions come to the forefront. • The EU promotes measures for minimizing the impact of fishing on marine ecosystems. • Management systems play the key role. September, 2012| Z. Kanık| 4

Rights-Based Management (RBM) Systems • Fisheries management system is a different combination of rules in fishing times, fishing areas, fishing equipment, fishing vessels, species, harvesting volumes, discards and the other factors to carry-out fisheries. • The most preferred options among these systems are RBMs. • RBM Systems • Input Rights Output Rights Limited Entry September, 2012| Z. Kanık| 5

Total Allowable Catch • The determination of the TAC as the inital step. • A well functioning quota system and truly determined TAC enable us to provide sustainability conditions and achieve MSY under an output quota regime. • Setting TACs is used for fixing maximum quantities of fish that can be landed from a specific stock in a given time. • TACs are distributed as percentage of total quotas or as specific numbers of tones of harvesting. September, 2012| Z. Kanık| 6

Relative Stability • In the EU, TACs are determined at the Union level and distributed to the EU countries based on the principle of ‘relative stability’. • The principle of the relative stabilityrefers to historical catches of countries in the EU. • Principle of ‘relative stability’ is one of the controversial issues of fisheries policy in the EU. September, 2012| Z. Kanık| 7

Maximum Sustainable Yield • Different models are used for estimation of MSY • Age-structured fish population model • Biological conditions are taken into consideration • - More complex than simple biomass model • - More realistic way of estimation September, 2012| Z. Kanık| 8

Aim and Scope of the Thesis • The main aim of the thesis is investigating the importance of quota allocation mechanisms and the determination of TAC levels. • Fishing technologies are embedded in the economic model as a key determinant. • We indicated technology-based optimality conditions for quota allocations at different TAC levels, which minimize the impact of fishing on total fish biomass. • Furthermore, in the analyses of MSY, we specified the optimum allocation of quotas at different TAC levels. September, 2012| Z. Kanık| 9

The Population Model • Three cohorts of the fish population • Juveniles, (age < 1) • Young matures, (1 ≤ age < 2) • Old matures, (2 ≤ age) • Beverton-Holttype recruitment function. The numbers of recruits are, September, 2012| Z. Kanık| 10

The Population Model September, 2012| Z. Kanık| 11

The Population Model September, 2012| Z. Kanık| 12

The Impact of Fishing on Total Biomass Change under an Age-Structured Model • In the first part, • The impact of fishing on total biomass is equal to the difference between the amount of change in total biomass from year t to t+1 under fishing conditions and non-fishing conditions. • Mechanism design for fishing quota allocations at different TACs, which minimizes the impact of fishing on total biomass change from year t to t+1. September, 2012| Z. Kanık| 13

The Impact of Fishing on Total Biomass Change under an Age-Structured Model September, 2012| Z. Kanık| 14

Maximum Sustainable Biomass Yield under an Age-Structured Model September, 2012| Z. Kanık| 37

Zafer Kanık Supervisor: Assist. Prof. Dr. Serkan Küçükşenel