The premium of marine protected areas : a simple valuation model
Working paper
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Date
2007-03Metadata
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- Discussion papers (SAM) [663]
Abstract
Marine Protected Areas are considered as a hedging tool against some
of the uncertainties that trouble many fisheries today. Such tools are
always connected with a cost; a premium. An optimal harvest rule is
combined with a protected area to manage a fishery. The model ignores
uncertainty, and is thus ideal to analyze the induced cost arising from
protected areas. We address the premium by comparing settings where
only an optimal harvesting policy is implemented and where the combined
management tool is used. The premium is found to be increasing and
convex as a function of the degree of protection. Concepts of relative
growth efficiency, relative biological gain, and biological efficiency are all
introduced to increase the understanding of the management tool and its
effects on the bioeconomic system. Time series solutions show that the
net return per unit of fish increases after the protected area is established.
Publisher
Norwegian School of Economics and Business Administration. Department of EconomicsSeries
Discussion paper2007:12