Ex ante evaluation of the costs and benefits of individual transferable quotas: A case-study of seven Australian commonwealth fisheries

Individual transferable quotas (ITQs) have been introduced in a number of different countries, including Australia. Using seven Australian commonwealth fisheries the paper undertakes an ex ante cost–benefit analysis whether to introduce ITQs into these fisheries. The analysis uses five cost–benefit criteria, and in particular the gross value of production (GVP), to evaluate whether ITQs should be introduced or not. For fisheries where the net benefits do not currently justify ITQs, a pathway is provided to improve management outcomes with the use of individual transferable efforts units (ITEs).     

Do boat licences have a role in fisheries managed through individual quotas? Experience in Australian fisheries

Some economists have questioned the need for retaining boat licences in fisheries managed through rights-based systems on the assumption that licences act as an impediment to autonomous adjustment. In this paper, the role of boat licences in fisheries managed through rights-based instruments is explored through examining their use in several fisheries in Australian and elsewhere. The study concludes that any impediment to autonomous adjustment that is produced by boat licences is likely to be small relative to other factors. Further, boat licences play an important role in offsetting imperfections in the rights-based management systems that exist in most countries.