2017 Volume 83 Issue 1 Pages 2-8
A theoretical analysis was carried out in order to examine the economic effects of a reduction of the number of fishing boats with compensation shared by the remaining fishermen, using a generalized stock production model. The results showed: 1) the reduction improves the profitability of fishery if the stock size at the time of the reduction is less than that at the optimal level of the dynamic Maximum net Economic Yield, 2) a 5-20% reduction sufficiently improves profitability if the stock size at the time of the reduction is similar to that at open access equilibrium, and 3) the extent of improvement of the 5-20% reduction will be maximized when the stock size at open access equilibrium is around 10-30% of the carrying capacity. Issues to be resolved such as a lack of incentive to reduce costs in fisheries were discussed.
