Fisheries Resources Economics 9813343273, 9789813343276

Citation preview

Xinjun Chen Editor

Fisheries Resources Economics

Fisheries Resources Economics

Xinjun Chen Editor

Fisheries Resources Economics

Editor Xinjun Chen College of Marine Sciences Shanghai Ocean University Lingang New City, Shanghai, China

ISBN 978-981-33-4327-6 ISBN 978-981-33-4328-3 https://doi.org/10.1007/978-981-33-4328-3

(eBook)

Jointly published with China Agriculture Press © China Agriculture Press 2021 This work is subject to copyright. All rights are reserved by the Publishers, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publishers, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publishers nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publishers remain neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore

Preface

Fishery resources are an important part of natural resources, and an important source of high-quality animal protein and food for human beings. They provide employment, economic benefits, and social welfare for people engaged in fishing activities and also play an important role in food safety, employment, economic development, foreign trade, and other aspects. However, after the Second World War in the last century, some of the world's traditional important fishery species have declined; therefore, the sustainable utilization of fishery resources and its economic problems caused global concern. Fishery resource economics is an important branch of applied economics and an important part of resource economics. Its research object is fishery resource and its economic problems. Fishery resources economics is to focus on the contradiction between the demand of human economic activities and the supply of fishery resources, focus on the study of the economic problems of fishery resources, clarify the causes of the economic problems of fishery resources and the theoretical principles of their solutions, so as to reveal the allocation of fishery resources in different regions and at different times, coordinate the relationship between the utilization of fishery resources and the economic development, and realize the sustainable development of fishery economy. The development of resource economics, especially after the theory of sustainable development is put forward, has reached a relatively perfect stage, and the construction of its discipline system has received unprecedented attention. Many universities have set up courses in this field. However, the development and construction of fishery resources economics is in a developing stage of continuous improvement. Fishery resources are often analyzed as a typical case of “renewable resources” or “shared resources” in general resource economics. With the deepening of people’s understanding of the functions and functions of fishery resources, fishery resources economics is developing constantly. This book is divided into six parts. The first part describes the basic characteristics of fishery resources, the emergence and development of fishery resources economics and its research system. The second part is the basic principles of resource v

vi

Preface

economics. Due to the lack of basic knowledge of economics for the researchers engaged in marine fishery science and technology, this chapter introduces the static and dynamic cost-benefit analysis in detail, expounds the basic principles of natural resource allocation and Pareto optimal principle, as well as resources, environment and sustainable development, etc. so as to provide basic theory and analysis for the optimal allocation of fishery resources. The third part is the optimal allocation and model of fishery resources, including the bioeconomic model of single species and the bioeconomic model under the influence of ecology and technology. In the bioeconomic model of single species, it includes the basic theory of fishery stock assessment, the bioeconomic model based on static state and dynamic state, and the bioeconomic model of single species considering market. The bioeconomic model under the influence of ecology and technology includes the bioeconomic model of technological interaction, the bioeconomic model of technological and ecological interaction, and the optimization of comprehensive multi-objective allocation of fishery resources. The fourth part is fishery resources accounting and sustainable utilization evaluation. In order to develop and utilize all kinds of fishery resources scientifically and reasonably, it is not only necessary to make the quantity and quality accounting, and value accounting of fishery resources, but also to make corresponding evaluation for the development status of fishery resources. Therefore, this paper systematically introduces the theory and method of fishery resource value accounting and describes the fishery resource evaluation method based on the average trophic level of catches. The fifth part is global climate change and sustainable development of fisheries, focusing on global environmental change and fisheries, vulnerability assessment of food security under the impact of climate change on marine fisheries, international action of sustainable development of fisheries—Blue growth, carbon sink fisheries, etc. The sixth part is fisheries resource management and policy making, mainly include how to achieve effective allocation of fisheries resources through institutional arrangements and scientific management. Because fishery resource economics is a new and developing subject, especially with the development of environment and resource economics and fishery resource science, some new research results will appear constantly. Also, due to the limitations of length and reference materials, as well as the limited level of authors, there are still many inappropriate points in this book. Readers are requested to make corrections and suggestions. This book will provide a reference material for those who want to engage in fisheries or fishery-related work, which is applicable to undergraduate, postgraduate, training education, and fishery-related personnel. Lingang New City, China

Xinjun Chen

Contents

1

2

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Xinjun Chen 1.1 Concepts, Classification, and Characteristics of Natural Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1.1 Concepts of Natural Resources . . . . . . . . . . . . . . . . . . . . . 1.1.2 Classification of Natural Resources . . . . . . . . . . . . . . . . . . 1.1.3 Basic Characteristics of Natural Resources . . . . . . . . . . . . 1.2 Concepts and Characteristics of Fishery Resources . . . . . . . . . . . . 1.2.1 Concepts and Categories of Fishery Resources . . . . . . . . . . 1.2.2 Natural Characteristics of Fishery Resources . . . . . . . . . . . 1.2.3 Basic Characteristics of Fishery Resource Exploitation . . . . 1.2.4 Externalities in the Process of Fishery Resource Exploitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2.5 Other Economic Characteristics of Fishery Resources . . . . 1.3 Development of Fishery Resource Economics . . . . . . . . . . . . . . . 1.3.1 Evolution of Resource Economics . . . . . . . . . . . . . . . . . . . 1.3.2 Current State of Development in Fishery Resource Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4 Research System of Fishery Resource Economics . . . . . . . . . . . . . 1.4.1 Objects of Study for Fishery Resource Economics . . . . . . . 1.4.2 Research Content of Fishery Resource Economics . . . . . . . 1.4.3 Research Methods for Fishery Resource Economics . . . . . . 1.4.4 The Role and Significance of Fishery Resource Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Basic Principles of Resource Economics . . . . . . . . . . . . . . . . . . . . . . Xinjun Chen and Gang Li 2.1 Costs and Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1.1 Static Cost and Benefit Analysis . . . . . . . . . . . . . . . . . . . .

1

2 2 3 7 11 11 12 14 15 18 20 20 26 33 33 34 35 38 38 41 42 42 vii

viii

Contents

2.1.2 Dynamic Cost and Benefit Analysis . . . . . . . . . . . . . . . . . 58 Basic Principles of Natural Resource Optimization and Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 2.2.1 Basic Principles of Resource Allocation . . . . . . . . . . . . . . 62 2.2.2 Social Cost Structure of Resources . . . . . . . . . . . . . . . . . . 64 2.2.3 Profit Maximization and Resource Allocation . . . . . . . . . . 66 2.3 Resources, the Environment, and Sustainable Development . . . . . . 77 2.3.1 Resources, the Environment, and Economic Systems . . . . . 77 2.3.2 Resource Scarcity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 2.3.3 Environmental Issues and their Causes . . . . . . . . . . . . . . . 90 2.3.4 Basic Theory of Sustainable Development and Approaches for its Realization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 2.2

3

4

Bioeconomic Model for a Single Species of Fish . . . . . . . . . . . . . . . . Xinjun Chen, Gang Li, and Huajie Lu 3.1 Basic Theory of Fishery Resource Assessment . . . . . . . . . . . . . . . 3.1.1 Changes in Quantity of Fishery Resources and the Basic Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1.2 Surplus Production Model . . . . . . . . . . . . . . . . . . . . . . . . 3.1.3 Dynamic Pool Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2 Bioeconomic Model Based on a Single Static Fish Species . . . . . . 3.2.1 Schaefer-Based Bioeconomic Model . . . . . . . . . . . . . . . . . 3.2.2 Age Structure-Based Bioeconomic Model . . . . . . . . . . . . . 3.2.3 Yield-Mortality-Based Bioeconomic Model . . . . . . . . . . . . 3.3 Bioeconomic Model Based on a Dynamic Single Fish Species . . . . 3.3.1 Discount Rate-Based General Bioeconomic Model for a Single Fish Species . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3.2 Optimal Harvest Strategy and Optimal Population Number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3.3 Approximation Method for Determining the Discount Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 A Bioeconomic Model for a Single Fish Species that Takes into Account the Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4.1 General Concept of Supply and Demand . . . . . . . . . . . . . . 3.4.2 Equilibrium Supply Curve for an Open Fishery . . . . . . . . . 3.4.3 Bioeconomic Instability . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4.4 Discount Rate-Based Supply Curve . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

113 114 114 120 124 130 130 139 144 146 147 151 162 166 166 168 170 172 174

Bioeconomic Model of Fishery Resources Under Ecological and Technological Interdependencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 Xinjun Chen, Gang Li, and Qi Ding 4.1 Bioeconomic Model Under Technological Interdependencies . . . . . 176 4.1.1 Different Fishing Fleets When Fishing for the Same Species . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177

Contents

ix

4.1.2

Two Ecologically Independent Species Fished by the Same Fleet at the Same Time . . . . . . . . . . . . . . . . . . . . . . 4.1.3 Technologically Interdependent Fisheries for Two Fishing Fleets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2 Bioeconomic Model Influenced Jointly by Technology and Ecology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2.1 Competitive State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2.2 Predator–Prey State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3 Optimal Allocation of Fishery Resources in a Comprehensive Bioeconomic Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3.1 Composition of a Fishery Resource System . . . . . . . . . . . . 4.3.2 Establishment of a Comprehensive Bioeconomic Model of Fishery Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3.3 Model Parameters and Information . . . . . . . . . . . . . . . . . . 4.3.4 Case Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Assessment of the Sustainable Use of Fishery Resources and an Early Warning System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Xinjun Chen and Qi Ding 5.1 Significance and Role of Assessments of the Sustainable Use of Fishery Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2 Review of the Main Sustainable Development Evaluation Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2.1 Monetary Evaluation Model . . . . . . . . . . . . . . . . . . . . . . . 5.2.2 Biophysical Quantity Measurement Indexes . . . . . . . . . . . . 5.2.3 Evaluation Method for Comprehensive Index Systems . . . . 5.3 Basic Theories on the Sustainable Use of Fishery Resources . . . . . 5.3.1 Connotation and Definition of Sustainability . . . . . . . . . . . 5.3.2 Concept of and Connotation for the Sustainable Use of Fishery Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3.3 Factors that Affect the Sustainable Use of Fishery Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4 Assessment Methods for the Sustainable Use of Fishery Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4.1 Concept of and Connotation for the Sustainable Use Assessment of Fishery Resources . . . . . . . . . . . . . . . . . . . 5.4.2 Relativity of Sustainable Use Assessments . . . . . . . . . . . . 5.4.3 General Steps of Sustainable Use Assessments and a Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4.4 Index System for the Sustainable Use Assessment of Fishery Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5 Quantification Methods for the Sustainable Use Assessment of Fishery Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5.1 Comprehensive Index Evaluation and Quantification . . . . .

182 190 195 196 202 205 205 207 210 211 214 215

216 218 219 221 225 230 230 232 234 236 236 237 238 244 253 253

x

Contents

5.5.2 Quantification Method Based on the MTL of the Catch . . . Basic Issues of an Early Warning System for the Sustainable Use of Fishery Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.6.1 Concept and Connotation of an Early Warning System for the Sustainable Use of Marine Fishery Resources . . . . . 5.6.2 The Meaning of Early Warning Indicators . . . . . . . . . . . . . 5.6.3 Operating Mechanism for Early Warning Systems for the Sustainable use of Marine Fishery Resources . . . . . . . . . . . 5.6.4 Constructing an Early Warning Index Framework for the Sustainable Use of Fishery Resources . . . . . . . . . . . . . . . . 5.7 Empirical Analysis—Sustainable Use Assessment of Marine Fishery Resources in Various Fishing Areas around the Globe . . . . 5.7.1 Catch Statistics and Trophic Level Data . . . . . . . . . . . . . . 5.7.2 Evaluation Method Based on Trophic Level of the Catch . . . 5.7.3 Changes in the MTL of the Global Catch . . . . . . . . . . . . . 5.7.4 The Potential Change Mechanism for MTL . . . . . . . . . . . . 5.7.5 The Effect of Fishery Exploitation History on the Effectiveness of the 3.25MTL Indicator . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

257

280 280

Theories and Methods of Fishery Resource Accounting . . . . . . . . . Xinjun Chen 6.1 Natural Resource Accounting and its Research Progress . . . . . . . 6.1.1 Background on Natural Resource Accounting . . . . . . . . . 6.1.2 Research Progress on Natural Resource Accounting in China and Abroad . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2 Basic Principles of Fishery Resource Accounting . . . . . . . . . . . . 6.2.1 Concepts of Fishery Resource Accounting and its Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2.2 Characteristics and Principles of Fishery Resource Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2.3 Basic Procedures and Methods of Fishery Resource Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3 Physical Accounting for Marine Fishery Resources . . . . . . . . . . . 6.3.1 Physical Accounting for Fishery Resources . . . . . . . . . . . 6.3.2 Qualitative Accounting for Fishery Resources . . . . . . . . . 6.4 Value Accounting for Fishery Resources . . . . . . . . . . . . . . . . . . 6.4.1 Theories on the Value of Natural Resources . . . . . . . . . . 6.4.2 Models for the Value of Fishery Resources . . . . . . . . . . . 6.5 Value Accounting Example with Shrimp . . . . . . . . . . . . . . . . . . 6.5.1 Overview of Shrimp Resources . . . . . . . . . . . . . . . . . . . . 6.5.2 Asset Value Accounting for Shrimp . . . . . . . . . . . . . . . . 6.5.3 Nonasset Value Accounting for Shrimp . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

293 296 296 301 302 302 310 320 320 320 321 322

5.6

6

259 259 263 265 267 270 270 271 273 277

. 283 . 283 . 283 . 286 . 289 . 289 . 291 . . . . . . . . . . . .

Contents

7

8

Global Climate Change and Sustainable Development of Fisheries . . . Xinjun Chen and Qi Ding 7.1 Global Environmental Change and Fisheries . . . . . . . . . . . . . . . . . 7.1.1 Effect of Eutrophication on Fisheries . . . . . . . . . . . . . . . . 7.1.2 Effects of Global Warming on Fisheries . . . . . . . . . . . . . . 7.1.3 Effect of Ozone Layer Destruction on Fisheries . . . . . . . . . 7.1.4 Ocean Acidification and Its Effect on Fisheries . . . . . . . . . 7.2 Evaluation of the Food Security Vulnerability of Fisheries Under the Effects of Climate Change . . . . . . . . . . . . . . . . . . . . . . 7.2.1 Importance of Marine Fisheries in the Food and Nutrition Security of Various Countries . . . . . . . . . . . . . . . . . . . . . . 7.2.2 National Food Security Vulnerability caused by the Effects of Climate Change on Marine Fisheries . . . . . . . . . 7.2.3 Analysis of Factors Affecting the National Food Security Vulnerability caused by Marine Fisheries . . . . . . . . . . . . . 7.3 International Action for the Sustainable Development of Fisheries—Blue Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.3.1 Summary of 2030 Agenda for Sustainable Development and Blue Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.3.2 International Action for Blue Growth . . . . . . . . . . . . . . . . 7.3.3 Case Analysis of Blue Growth . . . . . . . . . . . . . . . . . . . . . 7.4 Carbon Sink Fisheries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.4.1 Concept and Role of Carbon Sink Fisheries . . . . . . . . . . . . 7.4.2 Carbon Sequestration of Marine Fisheries . . . . . . . . . . . . . 7.4.3 Estimation of Carbon Sequestration in China’s Freshwater Fisheries . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fishery Resource Management and Policy Formulation . . . . . . . . . . Xinjun Chen 8.1 Features and Management of Common Resources . . . . . . . . . . . . . 8.1.1 Concept and Features of Common Resources . . . . . . . . . . 8.1.2 Economic Analysis of the Optimal Utilization of Common Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.1.3 Economic Analysis of the Optimal Utilization of Common Pool Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.2 Fishery Development Stages and their Teatures . . . . . . . . . . . . . . 8.2.1 Fishery Development Stages Divided into Six Phases . . . . . 8.2.2 Fishery Development Stages Divided into Four Phases . . . . 8.3 Connotation and Goals for Fishery Resource Management . . . . . . 8.3.1 Connotation of Fishery Resource Management . . . . . . . . . 8.3.2 Goals of Fishery Resource Management . . . . . . . . . . . . . . 8.3.3 Principles for Determining Fishery Resource Management Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.3.4 Composition of Fishery Resource Management Systems . . . .

xi

323 324 324 324 327 328 328 330 330 336 341 341 342 343 343 343 344 345 346 347 348 348 351 360 363 363 364 366 366 367 371 375

xii

Contents

8.3.5

Issues Faced by Fishery Resource Management during the Decision-Making Process . . . . . . . . . . . . . . . . . . . . . . . . 8.4 Policy Formulation for Fishery Resource Exploitation and Utilization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.4.1 Development Strategies in the Course of Fishery Resource Exploitation and Utilization . . . . . . . . . . . . . . . . . . . . . . 8.4.2 Fishery Economic Policies in the Course of Fishery Resource Exploitation and Utilization . . . . . . . . . . . . . . . 8.5 Measures of Fishery Resource Management . . . . . . . . . . . . . . . . 8.5.1 General Measures of Natural Resource Management . . . . 8.5.2 Fishery Resource Management Methods and Measures . . 8.5.3 Input and Output Management Methods . . . . . . . . . . . . . 8.6 Ideas for the Development and Management of International Fishery Management Systems . . . . . . . . . . . . . . . . . . . . . . . . . . 8.6.1 International Fishery Management System . . . . . . . . . . . . 8.6.2 Modern Marine Fishery Management Ideas . . . . . . . . . . . 8.6.3 Main Connotations of International Fishery Resource Management Documents . . . . . . . . . . . . . . . . . . . . . . . . 8.6.4 Development Trends in International Marine Fishery Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.7 Uncertainties and Precautionary Approach . . . . . . . . . . . . . . . . . 8.7.1 Concepts of Uncertainty and Risk . . . . . . . . . . . . . . . . . . 8.7.2 Sources of Risks and Uncertainties in Fishery Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.7.3 Precautionary Approach for Uncertainties in Fishery Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. 378 . 380 . 380 . . . . .

382 390 390 393 395

. 409 . 409 . 411 . 413 . 415 . 416 . 416 . 417 . 419 . 421

Abbreviations

ΔQ ΔTC A a

AFC Ai aij AR AREA Aream ATC AVC AVE AVP AVY B B B0 B(t + 1) B(t) B* B1 BE BEAM1

Incremental output Incremental STC The total amount of investment paid for the fishery resource The abundance and the extraction and utilization conditions of the fishery resource and the grade coefficients of the difference in fishing grounds, difference in species, and difference in quality Average fixed cost Total mortality The restraint coefficient Average revenue The area of the sea area where the population is distributed The daily swept area Average total cost Average variable cost Average yield value per unit fishing effort Average revenue curve Average yield per unit fishing effort Minimum viable population in biology The population number dB/dt Resource biomass of the available resource groups at time t + 1 Resource biomass of the available resource groups at time t The stock for the maximum sustainable amount of fishing Maximum carrying capacity of environment Bioeconomic equilibrium Biology and Economic Analysis Model 1 xiii

xiv

BEAM2 BEAM3 BEAM4 BEAM5 Beq BGI B-H BMCY BMP BMSY BV Ce C C(B) Cj Code CPUE d DEHHS DELm DSR e EAF ECCO Ed EEA Es ESD F f F[B(t)] F0.1 FAO FDES Fi  1(t) FiB FISD FISHm

Abbreviations

Biology and Economic Analysis Model 2 Biology and Economic Analysis Model 3 Biology and Economic Analysis Model 4 Biology and Economic Analysis Model 5 The sustainable (equilibrium) resource amount Blue Growth Initiative Beverton–Holt Maximum constant yield biomass Biological maximum production The amount of resource corresponding to the MSY can be obtained Virgin biomass The cost of exploration in proving the reserves per unit resource The cost per unit fishing effort The cost per unit catch The benefit coefficient per unit quantity of each kind of natural resource 1995 Code of Conduct for Responsible Fisheries Catch per unit effort The utilization rate of the fixed amount of reserves The estimated time for egg maturation The expected time for a fishing vessel to enter the fishery Driving force-state-response Referred to as demand elasticity Ecosystem Approach to Fisheries Enhancement carrying capacity options The demand elasticity coefficient European Environmental Agency The supply elasticity coefficient Ecologically sustainable development Fishing mortality coefficient Fishing effort The fish increment in period t Fishing mortality coefficient corresponding to the optimum yield Food and Agriculture Organization Framework for the Development of Environment Statistics Fishing mortality coefficient at age i  1 in period t Fishing-in-balance Framework for Indicators of Sustainable Development The average number of fishers in fleet m

Abbreviations

FLTAY FMCY FMEY FMSY fMSY FOY g G GCMs GDP GEF GNP GPI h H(t) HCRs Hmaxi HSi(t) i ICES IOC-UNESCO

ISD ISEW ISSCAAP ITQ IUCN IWC K ki L L1 L1i

xv

Fishing mortality coefficient corresponding to the longterm average yield Fishing mortality coefficient corresponding to the maximum constant yield Fishing mortality coefficient corresponding to the maximum economic yield Fishing mortality coefficient corresponding to the maximum sustainable yield The fishing effort corresponding to the MSY can be obtained Fishing mortality coefficient corresponding to the optimum yield The order of the delay, which represents the Gamma probability density function parameter The amount of growth General circulation models Gross Domestic Product Global Environment Facility Gross national product Genuine progress indicator The risk coefficient The amount of increase in the current period Harvest control rules The maximum number of eggs laid by the spawning population i The estimate of the eggs laid by the spawning population i at time t The annual interest rate The International Council for the Exploration of the Sea The Intergovernmental Oceanographic Commission of the United Nations Educational, Scientific and Cultural Organization Indicators of Sustainable Development Index of Sustainable Economic Welfare The International Standard Statistical Classification of Aquatic Animals and Plants Individual transferable quota The International Union for Conservation of Nature International Whaling Commission The environmental carrying capacity The growth parameter of species i Average body length Asymptotic body length The maximum body length of species i

xvi

LAC Lc50 LF¼0 Lij Lim50% Lim75% Lm50 LMC LTAY LTC M MAC MAGEi MBAL MBP MC MCMC MCY MEC MEEC MER MEY Mi  1 (t) MNPB MOC MPAs MPC MPL MPR MPRC MPS MR MSC MSCY MSOC MSR MSY MTL MTPR MUC MVE MVP

Abbreviations

Long-run average cost Body length at first capture Average body length when there is no exploitation The length of the fish of species i at age j The body lengths of fish caught by fleet m when the residual rate of the fish reaches 50% The body lengths of fish caught by fleet m when the residual rate of the fish reaches 75% Body length at first sexual maturity Long-run marginal cost Long-term average yield Long-run total cost The natural death coefficient The marginal cost The maximum observed age in population i Minimum biological acceptable level Maximum biological production Marginal cost Markov chain Monte Carlo Maximum constant yield Marginal external cost Marginal external environmental cost Marginal external revenue Maximum economic yield Natural mortality coefficient at age i  1 in period t The marginal net private benefits Marginal opportunity cost Marine protected areas Marginal private cost Marginal output Marginal private revenue Marginal production cost Material product system Marginal revenue The marginal social cost Maximum social yield Marginal social opportunity cost Marginal social revenue Maximum sustainable yield Mean trophic level Marginal time preference rate Marginal user cost Marginal value of fishing effort Marginal benefit curve

Abbreviations

MWTP N ND NDP Ni(t) NNP OC OECD OSY OY p pij Pr PSR PV q Q Qd Qs r R R(t) R0 RETijm

Ri(t) Rmaxi RNi(t) RRCs s S(t  1) S(t) SAC SATC SCOPE SCOR SD SDG

xvii

Marginal willingness to pay The fixed number of years of benefit The amount of natural death Net domestic product Resource amount at age i in period t Net national product Opportunity cost The Organisation for Economic Co-operation and Development Optimum sustainable yield Optimum yield Price of the species The price of species i at specification (or age) j The average profit rate for the exploration department Pressure-state-response Present value Catchability coefficient The total quantity of the beneficiary fishery resource The quantity of demand The quantity of supply Intrinsic rate of increase in the population Amount of recruitment The amount of decrease in the current period The basic rent of a certain fishery resource The residual rate of fishing gear for fleet m’s fishing gear for species i at age j, which can be found by using the curve for fishing gear selectivity The recruitment of population i The maximum observed value of recruitment The random variable of normal distribution Real resource costs The grade correction coefficient of the resource The stock at the end of the previous period t or at the beginning of the period t The stock at the end of period t Short-run average cost Short-run average total cost the Scientific Committee on Problems of the Environment The Scientific Committee on Oceanic Research Social demand Sustainable Development Goals

xviii

SEEAF Si si SMC SNA SP SPD SS STC TAC tave TAZARA tc TC tc50 TFC tm50 toi tr TR TRB2 TRBl TVC tλ Ui UNCSD UNEP UNSTAT UV Vm W1 WCED WWF xj Y Y(t) Y0.1 Y1(t) Y2(t) Ymax

Abbreviations

System of Integrated Environmental and Economic Accounting for Fisheries Survival rate of the group at age i The age at which population i first matures Short-run marginal cost System of national accounts Prey Predator Social supply Short-run total cost Total allowable catch average age Tanzania-Zambia Railway Age at first capture Total cost Age at first capture Total fixed cost Age at first sexual maturity The theoretical age when the body length of species i is zero Age at recruitment Total revenue The revenue from the catch of the B2 population The revenue from the catch of the B1 population Total variable cost Maximum age Decision variable, that is, the shadow price The United Nations Commission on Sustainable Development The United Nations Environment Programme The United Nations Statistics Division Ultraviolet Input in the delay process (the number of fishing vessels for catching the target species) Asymptotic body weight World Commission on Environment and Development World Wildlife Fund Each type of natural resource Yield ( fish catch) Catch in period t Optimum yield The yield of Fleet 1 at time t The yield of Fleet 2 at time t Maximum allowable catch

Abbreviations

YMBP Z Z*

Z1

γ γ 1(t), γ 2(t), . . ., γ g  1(t) γ k(t) γtg(t) δ ξ π π(t) πm(t) ρ φ

xix

Maximum biological production yield The target value (ecological and economic benefits, and so on) The ratio of the optimal population number to the environmental carrying capacity K, which is the optimal resource amount at equilibrium The ratio of the population number B1 in an open fishery when the profit is zero to the environmental carrying capacity, which is the resource amount at equilibrium during free entry to fishing operations The ratio of the discount rate to the intrinsic rate of increase in the population, which is referred to as the bioeconomic growth rate are instantaneous rates The output of the delayed process, that is, the number of eggs hatched at time t The output in the delay process (the number of fishing vessels entering the fishery) The discount rate constant The proportion of export catch of species i caught by fleet m Profit The profit function Cumulative economic profit The average rate of profit for the invested capital A positive coefficient (fleet dynamic parameter) that represents the long-term dynamic changes in the fleet (short-term decisions are not taken into account)

Contributors

Xinjun Chen College of Marine Sciences, Shanghai Ocean University, Lingang New city, Shanghai, China Qi Ding Yellow Sea Fisheries Research Institute, Chinese Academy of Fishery Sciences, Qingdao, Shandong, China Gang Li College of Marine Sciences, Shanghai Ocean University, Lingang New city, Shanghai, China Huajie Lu College of Marine Sciences, Shanghai Ocean University, Lingang New city, Shanghai, China

xxi

Chapter 1

Introduction Xinjun Chen

Abstract Fishery resources are the material basis for the development of fishery economy. Considering the factors of biology, society, economy, employment, and so on, realizing the optimal allocation of fishery resources is an important condition to ensure the sustainable utilization of resources. Fishery resource economics is a subject of how to realize the optimal allocation of fishery resources. It is not only an important branch of Applied Economics but also an important branch of fishery resource science. It is an interdisciplinary subject. This chapter is the introduction, focusing on the basic concept, research content, and development process of fishery resource economics. The main contents include: (1) the concepts, classification, and basic characteristics of natural resources as well as the concepts and characteristics of fishery resources; (2) a brief introduction on the development of resource economics as well as the development history and current state of fishery resource economics; (3) a systematic description of the research contents, research methods, and research system of fishery resource economics; and (4) an analysis of the relationship between fishery resources and national economic development as well as the significance and role of fishery resource economics. Through the study of this chapter, it is helpful to understand the purpose and significance of learning fishery resource economics, the basic concept, research content, and development status of fishery resource economics. Keywords Fishery resource economics · Resource economics · Characteristic of fishery resource

X. Chen (*) College of Marine Sciences, Shanghai Ocean University, Lingang Newcity, Shanghai, China e-mail: [email protected] © China Agriculture Press 2021 X. Chen (ed.), Fisheries Resources Economics, https://doi.org/10.1007/978-981-33-4328-3_1

1

2

1.1 1.1.1

X. Chen

Concepts, Classification, and Characteristics of Natural Resources Concepts of Natural Resources

Resources usually refer to “all elements in nature and human society that are transformed to produce benefits for humans.” With the emergence of population, resource, and environmental issues and the continuous development of and improvement in the resource economic system, specific concepts related to resources have gradually formed in resource economics. Based on the concept of “resources” from the book, Resource Economics—An Economic Approach to Natural Resources and Environmental Policy, written by the well-known US resource economist Alan Randall, the following aspects are emphasized: (1) resources are substances discovered by humans, have uses, and generate value; (2) resources are a dynamic concept, that is, the changes in information, technology, and relative scarcity can all turn previously valueless substances into resources; and (3) although substances produced by humans through a combination of resources, capital, technology, and labor contain the components of resources or have certain features of resources, these substances cannot be called resources because the emphasis of resources is on the originality or naturalness of the substances. Therefore, in resource economics, “resources” actually refer to natural resources. In 1972, the United Nations Environment Programme defined natural resources as follows: “under certain time conditions, the general term for natural environmental factors that are able to generate economic value to improve the current and future welfare of humankind.” In Encyclopedia Britannica, natural resources are defined as “natural products that humans can utilize and the environmental functions that produce these components. The former includes land, water, the atmosphere, rocks, minerals, forests, grasslands, mineral products, oceans, etc., and the latter refers to solar energy, the environmental functions of the ecosystem, the functions of the physical and chemical cycles of the earth, etc.” Some scholars in China have defined natural resources as resources that exist naturally in nature and that have not been processed by humans, such as land, water, living things, energy, minerals, etc. Although people have different depths and breadths of understanding of natural resources, there are still many common points. These common points include the following: (1) natural resources are substances or energy that can be provided for human utilization or create current or future welfare for humans within a certain time and space; (2) natural resources are spoken of in connection with human utilization; and (3) natural resources are a comprehensive and dynamic system connected with society, the economy, and technology, and the scope of natural resources also increases day-by-day with the development of human society and the advancement of science and technology. In summary, of the aforementioned, natural resources are “the sum of natural substances and natural energy that are able to generate ecological value or economic benefits to improve the current or the foreseeable future quality of life for humans under certain social, economic, and technological conditions.”

1 Introduction

3

It is necessary to emphasize that natural resources do not only include material resources, but they also include the functions that are constituted by these material resources, such as natural cycles, the food chain, and so on, which are referred to as functional resources; therefore, natural resources comprise material resources and functional resources. The emphasis on the demand for material resources and functional resources differs in different stages of the development of human society. With the advancement of resource and environmental sciences as well as people’s further study on the relationship between resources and the environment, those environmental factors or conditions that can directly bring a certain utility and satisfaction to the public, such as beautiful landscapes and aquatic ecological environments, can also be regarded as resources, that is, environmental resources. Environmental resources have increasingly shown their importance in the present stage of development.

1.1.2

Classification of Natural Resources

Due to the extensiveness and multisuitability of natural resources, people’s understanding of natural resources varies in depth and breadth. However, due to different application purposes and research foci, there are various methods for classifying natural resources. Additionally, due to the diversity in the types of natural resources and the differences in characteristic functions and uses, when studying issues such as the exploitation, utilization, protection, and management of natural resources, it is necessary to classify natural resources scientifically in order to utilize the strengths of natural resources based on their characteristics, functions, and roles, to overcome and avoid their shortcomings and to reasonably optimize the allocation of various resources and functions, thereby realizing the sustainable use and effective management of natural resources. In resource economics, classification is generally carried out according to the existing form, renewability, controllability, sustainability, and mobility of natural resources.

1.1.2.1

Classification According to the Existing Form of Natural Resources

According to the existing form, natural resources can usually be divided into land resources, climatic resources, water resources, mineral resources, biological resources, environmental resources, and so on. 1. Land resources refer to the terrestrial part of the Earth’s surface, which is composed of soil, landforms, rocks, vegetation, hydrology, and other factors, and includes plains, hills, mountains, the Gobi Desert, ice, snow, and so on. 2. Climatic resources include sunlight, temperature, moisture, air, and other elements.

4

X. Chen

3. Water resources include precipitation, surface water, groundwater, freshwater, seawater, and other resources. 4. Mineral resources include petroleum, coal, various metals, rare metals, and various other minerals. 5. Biological resources include plants, animals, microorganisms, and other resources, which can be divided into forests, forages, fishes, and other resources. 6. Environmental resources include environmental elements formed by natural substances and energy that have resource functions, such as notable mountains and large rivers, unique topography, landforms, geological tectonic regions, and other elements of the landscape environment. Classification according to the existing form of natural resources allows people to more intuitively recognize and understand the roles and functions of natural resources, which help in carrying out investigations, evaluations, exploitation, utilization, and protection of natural resources.

1.1.2.2

Classification According to the Renewable Features of Natural Resources

In resource economics, the most common and the most meaningful classification is based on whether natural resources have regenerable or renewable features, and they are generally divided into two major categories: nonrenewable resources and renewable resources. 1. Nonrenewable resources are also referred to as nonregenerable resources or exhaustible resources. The characteristics of this type of resource are fixed reserves (stocks), i.e., reserves continue to decrease as people exploit and utilize the resources, which will eventually be exhausted. This type of resource mainly includes mineral products and petroleum, natural gas, and so on; due to the extremely slow formation process of these resources, usually tens of thousands of years or even hundreds of millions of years, they can be considered nonrenewable for the present age and the foreseeable future. This means that their resource reserves will become less and less with time and that the portions that have been utilized and consumed cannot be regenerated or reproduced. This category of resources can also be further divided into two types: those that no longer exist once they are utilized, such as coal, petroleum, natural gas, and other fuel substances, and those that do not completely disappear after being utilized although their own quantities have decreased, such as copper, iron, and other metals. 2. Renewable resources are also known as regenerable resources or inexhaustible resources. The characteristics of this type of resource include the regeneration or sustainable replenishment of reserves through natural processes or under human participation. According to renewable characteristics, these resources can be further divided into two types. The first involves resources for which the renewable capability is unaffected by human behavior, such as solar energy, wind

1 Introduction

5

energy, rainfall, tidal energy, and so on; these resources can cycle or flow and thus are also called constant resources or flow resources. This type of resource not only occurs in large quantities in nature but also cycles endlessly and does not decrease in terms of quantity due to being utilized. The second involves resources that can self-reproduce, but there is a critical point in their renewal or recovery capability; this type of resource mainly refers to biological resources such as fishes, forests, forages, wild animals and plants, and so on, as well as soil fertility. However, as long as this type of resource is properly utilized and protected and does not exceed the critical point of its renewable capability, then the resource can recover and regenerate to become an inexhaustible resource. In contrast, in a situation of unreasonable exploitation, utilization, and protection and if reserves are reduced to below critical levels due to excessive utilization, then resource regeneration and renewal capabilities can be impeded, and the reserves will continue to decrease. Classification carried out based on the renewability features of resources has important guiding significance for the formulation of different resource exploitation and utilization strategies. On the one hand, people are reminded that they must pay attention to the reduction in or depletion of nonrenewable resources, which will impede the sustainable development of the economy; for this reason, it is necessary to conserve and utilize these resources in the most effective way. On the other hand, people realize that only through moderate utilization and appropriate protection can the continuous regeneration and development of renewable resources be realized, thereby sustainably supporting social and economic development and social progress.

1.1.2.3

Classification by Resource Control Mode

Based on different modes of control and management implemented by people, natural resources can generally be divided into two major categories: owned resources and common property resources. 1. Owned resources are also known as controlled access resources. The characteristics of these resources include clear owners who are able to control and regulate the use of resources through law or ownership, such as land ownership by a certain farmer, farm, or company and state-owned mines, forests, nature reserves, and so on. For these resources, because the farmer, farm, company, or state have ownership of the resources, they are able to regulate the mode and intensity to which the resources are utilized; therefore, this type of resource often receives ample reasonable utilization and protection as well as proper management, which realizes the sustainable utilization of resources. 2. Common property resources are also known as open access resources. The characteristics of these resources include no clear owners, or if there is a legal owner, the power of the owner cannot be exercised; therefore, any group or individual can enjoy these resources freely. The most typical examples are high seas fishery resources and air. In addition, some resources appear to be owned

6

X. Chen

resources, but they are also common property resources within a certain scope. For example, to other countries, fishery resources distributed in the exclusive economic zone of a certain country are the exclusive resources of another country, but within the scope of the home country, any province (city) can utilize them; therefore, they are also common property resources. For this type of resource, people often cannot control and regulate their mode of utilization and degree of utilization, and one person’s utilization of the resource cannot exclude the utilization of this resource by others. The consequence is often overexploitation, which thereby causes the resource to decline until it is exhausted. Therefore, the control and management policies a country or region adopts for the resources of the home country and home region directly affect the allocation mode, utilization intensity, and utilization sustainability of these resources. 1.1.2.4

Classification According to the Sustainability of Resources

According to the relative speed of natural resource renewal and human utilization as well as the degree of intervention in the renewable process of resources by humans, natural resources are generally divided into three categories. 1. Sustainably utilized resources—The quantity of this type of resources is very large and is basically unrelated to the current level of human utilization, such as solar energy, wind energy, tidal energy, and other macroclimate resources. 2. Nonsustainably utilized resources—The formation and renewal (regenerable) processes of this type of resource are extremely slow, much slower than the speed of exploitation and utilization by humans, and the quantities of these resources are limited. Exploitation and utilization lead to shortages in this type of resources, such as gold, silver, copper, and other metals and minerals and coal, petroleum, natural gas, and other fossil fuels. 3. Dualistic resources that fall between sustainable utilization and nonsustainable utilization—This type of resource occupies most of the total quantity of natural resources, and whether it can be sustainably utilized depends to a large extent on the utilization mode and degree of utilization by humans. For example, fishery resources are a renewable resource, but they can only continue to have offspring through reproduction. Once a fish species become extinct, there will never be a possibility of renewal. At present, due to overfishing by humans, the number of fish species that are declining and endangered is continuously increasing. As another example, the soil is generated from rocks, but the soil formation process is extremely slow. Under temperate climate conditions, the formation of a layer of soil with a thickness of 1 cm requires approximately 100 years. In rocky outcrops where rocks are bare, thousands of years or even tens of thousands of years are required to form agricultural land, but once that land is lost through rainfall erosion, replenishment in a timely manner is difficult. It can be seen that for these sustainably utilized and nonsustainably utilized natural resources, people cannot regard renewal or natural replenishment as the mainstay for sustainable utilization but should protect and manage it during exploitation and utilization.

1 Introduction

1.1.2.5

7

Classification According to the Mobility of Resources

According to mobility, natural resources can be generally divided into stock resources and flow resources. The characteristics of stock resources include certain limits on the quantity that can be finally utilized, even though we do not yet know at present what this limit is for some resources. Stock resources can also be divided into two categories: “consumed after use,” such as various fossil fuels, and recyclable, such as most metals. Flow resources can also be divided into two categories: flow resources that are independent of human activities, such as tidal energy, wind energy, and so on, and flow resources that can be regenerated infinitely when the use does not exceed their reproduction or renewal capability, such as biological resources; these resources often have a critical point, that is, a minimum amount of resources to maintain survival.

1.1.3

Basic Characteristics of Natural Resources

Natural resources are an indispensable material basis for social production and life. Different natural resources have different characteristics, and their roles and uses in production are also different, but there are some common characteristics or laws. A correct understanding and mastery of these common characteristics are of very important significance to the proper handling of the relationship between the exploitation and utilization of natural resources and economic development and to the reasonable allocation, protection, and management of natural resources. Generally, the basic characteristics of natural resources manifest through integrity, territoriality, versatility, limitation in quantity, and limitlessness in development potential.

1.1.3.1

Integrity

Various natural resources are interconnected and mutually restricting, and they constitute a unified body of natural resources, wherein changes occurring in one of the elements will inevitably cause corresponding changes in other factors and even cause changes in the entire natural resource system or even collapse. Using fishery resources as an example, marine fishes are an important component of the marine ecosystem. Changes in one species may lead to changes in the number and species of related species. For example, in the sea areas of the Atlantic Ocean, due to the exploitation of baleen whales, the abundance of krill has changed. This evidence reflects the interconnections and mutual restrictions of various natural resource elements. They are connected under different temporal and spatial conditions according to different proportions and different relationships, and different natural resource ecosystems form due to different combinations of structures.

8

X. Chen

The integrity of natural resources also manifests through the interconnection between humans and natural resource systems. Once natural resources become the object of human utilization, people become a component of the “human-natural resource system.” Humans exploit and utilize natural resources under certain economic and technological conditions, and this process also affects the environment and the large system comprising humans and natural resources. The integrity of natural resources requires us to have a comprehensive and global concept when formulating strategies for their exploitation and utilization, that is, the exploitation and utilization of natural resources in a certain area should be the comprehensive exploitation and utilization of the natural resource ecosystem. The exploitation and utilization of a particular natural resource and the planning and implementation of its utilization mode and intensity must take into account the combined states, limiting conditions, and enduring ability of other resource elements that are interconnected with the natural resource. To this end, basic research on environmental capacity, renewal capability, land carrying capacity, and so on must be strengthened to provide a basis for the scientific and reasonable exploitation and utilization of natural resources.

1.1.3.2

Territoriality

Due to the characteristics of the relative positions of the Earth and the Sun and their changes in movement and the distribution of land and sea on the Earth’s surface and the differences in topography, landforms, and geological conditions, the nature, quantity, quality, and combined features of natural resources have obvious territoriality. The best example of this regional difference is the division of the five zones of Earth. There are substantial differences in the status of natural resources between each zone. For example, the equatorial zone is rich in hydrothermal resources, plant growth is extremely lush, and animal species are abundant; comparatively, the temperate zone has fewer hydrothermal resources, less plant growth, fewer animal species, and the frigid zone has the fewest of these resources among the five zones. Different natural resource distribution and combination features have different bearing capacities, and they directly affect the exploitation and utilization of resources by humans. The distribution of fishes in the world also has certain regional boundaries, and all fishes have water environments suitable for their survival. They can usually be divided into marine fishes and freshwater fishes. Marine fishes can generally be divided into ocean fishes and continental shelf fishes, and continental shelf fishes can also be divided into coastal, offshore, and open sea fishes. Furthermore, according to the near-surface mean annual isotherms, fishes can be divided into polar cold-water fishes, cold temperate water or cool temperate zones fishes, warm temperate water fishes, and subtropical fishes and tropical or equatorial water fishes. According to the vertical distribution, fishes can be divided into pelagic and demersal fishes. These fishes have formed their own relatively stable marine ecosystems in their respective marine environments.

1 Introduction

9

The territoriality of natural resources makes their scarcity manifest more significantly, and “competitive” features are derived from this. Due to the territoriality of natural resources, there are differences in the modes and species of various natural resource exploitation, thereby marking cultural and social life with the brand of territoriality. For example, coastal fishermen rely on the fishing industry and are good at fishing. Therefore, in addition to addressing universal problems, research on natural resources must also study the unique phenomena and laws of each place as well as the historical development of culture. The territoriality of natural resources tells us that in the process of exploiting and utilizing natural resources, special attention must be paid to adapting to local conditions, giving full play to the advantages of the natural resources in each region, promoting strengths and avoiding weaknesses, reasonable allocation, and preferential utilization.

1.1.3.3

Versatility

Natural resources generally all have multiple uses. For example, land resources can be used for agriculture, and they can also be used for industry, transportation, and other purposes as well as for improving people’s living conditions. Fish can be used directly for food and for esthetic purposes, leisure, and so on; they are also an important link in the marine ecosystem. The versatility of natural resources mainly occurs because the components constituting natural resources are diverse within a large ecosystem; therefore, their functions are multisuitable. However, natural resources composed of different substances can still have similar physical, chemical, biological, and economic characteristics and thus have the same natural resource functions. The versatility of limited and scarce natural resources has become one of the basic premises for the existence of the economics discipline. It is precisely because the versatility of natural resource use exists that the question of how to optimally assign limited resources to different uses has emerged. If a type of natural resource has only one use and each resource can only be put into a certain specific production process and cannot be put into other production processes at the same time, then there would be no natural resource allocation and optimal utilization issues. The versatility of natural resources or the multisuitability of functions objectively determines the competitiveness of the same natural resource between different utilization modes and the substitutability between different natural resources in the same utilization mode. Competitiveness and substitutability of natural resource allocation require that we obtain the maximum benefits or social welfare of limited natural resources on the one hand; on the other hand, they also require that we minimize total cost in natural resource inputs through substitution between resources that have the same function under the premise of achieving established allocation goals. In addition, the versatility of some natural resources is compatible with simultaneous utilization. For example, water resources can be used for aquaculture, and at the same time, they can also be used for sightseeing, water sports, and so on.

10

X. Chen

The versatility of natural resources or the multisuitability of functions has provided not only the possibility for people to develop multiple industries but has also reminded people that they can carry out comprehensive exploitation and utilization of natural resources in a region according to the degree of versatility and characteristics of the natural resources in order to obtain the best comprehensive benefits of natural resource allocation. Therefore, when humans exploit and utilize natural resources, overall tradeoffs are required. In particular, when we are studying a comprehensive natural resource system, we must give full play to the versatility of the natural resources and realize the maximization of comprehensive benefits according to the principle of unifying ecological benefits, economic benefits, and social benefits as well as the principle of unifying short-term goals and long-term goals.

1.1.3.4

Limitations in Terms of Quantity

Under specific time and place conditions, the quantity of any natural resource is limited; not only is the available quantity limited, its reserves are also limited. At the same time, under certain social and economic conditions, due to being limited by scientific and technological levels and conditions of humans, the capability, scope, and species of natural resources for exploitation and utilization are also limited. Therefore, limitation or scarcity has become the most basic characteristic of natural resources. In addition, due to the uneven spatial distribution of natural resources as well as competition in the utilization of natural resources, the manifestation of natural resource scarcity is even more obvious, such as severe decline in China’s offshore fishery resources. When the total demand for natural resources exceeds the total supply, the resulting scarcity is referred to as “absolute scarcity”; when the total supply of natural resources is still able to satisfy the total demand but there is local scarcity caused by uneven distribution, the resulting scarcity is referred to as “relative scarcity.”

1.1.3.5

Limitlessness in Development Potential

Although natural resources are limited in terms of quantity, from the viewpoint of development, the potential of natural resource exploitation and utilization is unlimited. On the one hand, the renewability and cyclicity of natural resources are relatively unlimited, and they can be sustainably utilized as long as they are properly protected; on the other hand, with the continuous improvement in scientific and technological levels, the species and varieties of natural resources, as well as the breadth and depth of exploitation and utilization, continuously expand; in this way, the sources of natural resources can be enlarged. By continuously cultivating improved varieties, the utilization rate of existing natural resources increases, and limited resources are utilized to limitlessly unleash the potential in production and

1 Introduction

11

service functions. The limitlessness in the potential of natural resource exploitation and utilization is the material basis for the sustainable development of human society and the economy. In summary, the most essential characteristics of natural resources are usefulness and scarcity, which determine how people should fully utilize resource usefulness and how scarcity should improve through scientific and technological advancement, reasonable utilization and allocation, and so on. With the development of science and technology and the deepening of people’s understanding of nature, the concepts and scope of natural resources will inevitably be further deepened and developed.

1.2 1.2.1

Concepts and Characteristics of Fishery Resources Concepts and Categories of Fishery Resources

Fishery resources, also known as “aquatic resources,” are the material basis for the development of the aquatic products industry and one of the important sources of human food and high-quality animal protein. In Cihai, fishery resources refer to “the quantity of various economic animals and plants (fish, shellfish, crustaceans, sea mammals, algae) held in store in water areas, including some that are mature for fishing and some in preparation for fishing that are not yet mature.” In addition, with the increasing progress in human society, science and technology, and means of production, the exploited species, exploited sea areas, and exploited water layers of fishery resources are also continuously expanding, and the utilization modes are also continuously developing. According to distribution in water areas, fishery resources can be divided into inland water fishery resources and marine fishery resources, wherein marine fishery resources are currently the most important fishery resources in human exploitation and utilization. According to statistics from the Food and Agriculture Organization (FAO) of the United Nations, the global capture production is currently 90–95 million tons, of which marine capture production is between 78 and 83 million tons, accounting for 85–90% of the total capture production. There are numerous species of fishery resources. The main categories are fish, crustaceans, mollusks, algae, and mammals, and there are great differences in the numbers of each group. Among fishery resources, fishes are the most abundant; there are more than 20,000 species worldwide, with 2800 recorded in China; however, only approximately 100 species are fished worldwide. Crustaceans mainly refer to shrimps and crabs; mollusks mainly include bivalves and cephalopods; cephalopods include squids, long-finned squids, cuttlefish, and octopuses; and algae include kelp, laver, and so on. According to the different water layers where they are located, marine fishery resources can be divided into (1) demersal fishes that mainly inhabit the bottom layer and are usually caught by trawling, with production, mainly Gadidae and Merlucciidae, accounting for approximately 40% of the global marine fishery

12

X. Chen

production; (2) rocky fishes, such as grouper, that inhabit rocky reef areas and are mainly caught by angling; (3) coastal pelagic fishes, i.e., species that inhabit the middle and upper layers of the continental shelf sea areas, mainly Clupeidae, Engraulidae, Carangidae, and Scombridae; and (4) oceanic pelagic fishes that mainly inhabit the surface layer of the photic layer of continental slopes and ocean areas, such as tuna.

1.2.2

Natural Characteristics of Fishery Resources

Fishery resources are a natural resource, but they are different from inexhaustible natural resources such as tidal energy and wind energy and are also different from exhaustible and nonrenewable natural resources such as minerals. They are a renewable (or regenerable) biological resource, and most species have cross-regional and wide-ranging mobility. Therefore, fishery resources have their unique characteristics and law of change. In-depth analysis and research on the characteristics of fishery resources, including natural, biological, and economic aspects, have very important significance for the sustainable utilization and scientific management of fishery resources. In addition to the common characteristic of limitation (scarcity) that natural resources have, fishery resources usually also have the following characteristics: 1. Renewability. Fishery resources are a renewable resource with the ability to self-reproduce. Through the reproduction, development, and growth of the population, fishery resources are able to continuously renew, and the population numbers continuously replenish, which maintains the population numbers at a certain level to achieve equilibrium through self-regulation. If there are suitable environmental conditions and human exploitation and utilization are reasonable, then the population numbers can multiply from generation to generation, continuing to provide humans with high-quality animal protein and food. However, if the environmental conditions for growth experience natural or man-made damage or suffer heavy fishing and overfishing by humans, the self-regeneration capability of the population will reduce, and the equilibrium of the ecosystem will be damaged, leading to a decline or even exhaustion of the population numbers. 2. Migratoriness or mobility. Except for a few sessile aquatic organisms, the vast majority of fishery resources migrate and move in the water. This is a difference between fishery resources and other renewable biological resources such as grasslands, forests, and so on, and represents one of the most significant features that distinguish fishery resources from other natural resources. Generally, the range of movement of crustaceans is relatively small, and the range of movement of fishes and mammals is comparatively large. In particular, the range of movement for the anadromous salmon and oceanic fishes can reach thousands of kilometers. Many fishes migrate to nearshore sea areas when spawning, swim toward the open sea after spawning, and live in different sea

1 Introduction

13

areas at different developmental stages. In addition, many fishery resource species inhabit the water areas under the jurisdiction of multiple countries or regions throughout their entire life cycle. For example, juveniles develop and grow in the exclusive economic zone of a certain country, but adult fishes migrate to the exclusive economic zone of another country or to the high sea areas outside exclusive economic zones to grow. 3. Common sharing. Except for territorial seas and exclusive economic zones, a very large part of the ocean is not divided by national boundaries. Even in the case of territorial seas or cross-regional rivers, there are generally no clear demarcation lines for provinces and cities or states and counties, and so on. Fishery resources are migratory (mobile); therefore, in a certain water area, for a certain fishery resource, or even the same population, joint exploitation and utilization occurs by several countries or regions. Because it is difficult for people to limit management to a certain sea area and, similarly, a certain fisherman cannot prevent others from fishing in a certain area, there is a nonexclusive utilization or consumption feature. This is a typical shared resource. Shared resources are nonproprietary, and nonproprietariness is a weakening of property rights, which leads to low efficiency in resource utilization. In this case, price can neither play a coordinating role in the assignment and utilization of fishery resources between users nor provide stimulation for the exploitation of fishery resources, the protection of fishery resources, and the improvement of income. The allocation results are the excessive exploitation and utilization of fishery resources and seriously insufficient investment in terms of fishery resource management and protection and improvement of the production capacity of fishery resources. 4. Perishability of the catch. If the catch is spoiled, the utility and use value of wealth is completely lost. Even if there is no spoilage, if the freshness of the catch decreases, then the utilization effect of aquatic products is substantially reduced. Therefore, in an era without measures to maintain freshness, the operational sea areas and the scope of aquatic product circulation were greatly restricted. Fishing production was limited to coastal sea areas, and the consumption of aquatic products was also limited to coastal areas. With the development of freezing technology, the oceanization of operational fishing grounds, the widening of circulation areas, and the large-scale storage of processing materials have been promoted, creating conditions for the large-scale development of marine fisheries and thereby promoting the large-scale exploitation and utilization of offshore and ocean fishery resources. 5. Volatility. In addition to being acted upon by human fishing activities, the quantity of fishery resources is also affected by meteorology, the hydrological environment, and other natural factors. There are numerous unforeseeable factors, and the volatility in the amount of resources is substantial. Abnormal changes in water temperature, current, and other factors also create enormous harm to fishery resources, such as the drastic decline in the yield of Peruvian anchovies caused by the El Niño phenomenon. Due to the volatility of fishery resources, uncertainty and greater risk are involved in fishing production.

14

X. Chen

6. Integrity. Certain fishery species and other species with which they are mutually dependent, as well as the various natural environmental conditions in which they exist, are both interconnected and mutually restricting. Changes in one resource element or environmental condition cause corresponding changes in other related resources. Similarly, human fishing activities also affect the resource status.

1.2.3

Basic Characteristics of Fishery Resource Exploitation

Fishery resources are generally ownerless, allowing open access to fishing. In the case of no restrictions on fishery production activities and complete freedom in production inputs, the following characteristics are observed in the process of exploiting and utilizing fishery resources: 1. Fishery resource species that are economically unrewarding are not utilized, and the fishery resource species with high economic benefits are aggregated for fishing. This situation is particularly obvious in nonselective fishing gear. For example, in shrimp trawling fisheries, the main target catch is shrimp. Due to the high economic value of shrimp, other bycatch, such as some small miscellaneous fish and juveniles, is often discarded. Of course, the limited hold capacity of fishing vessels is also an important factor. According to FAO statistics, the annual global marine fishing discards reach approximately 27 million tons, accounting for approximately 32% of the total capture production. This is caused by people being driven by economic interests. Although these discards have little economic value, they play an important role in the entire marine ecosystem. 2. If one does not utilize fishery resources, others will, and the principle of “ownerless preemption” plays a role, making competition around the catch more intense, which also makes fishing target smaller and smaller. To reach fishing grounds faster than competitors, fishermen increase the power of their own fishing vessels; to obtain more catch than others, they structure their fishing vessels toward maximization and capture individuals before they are mature. In this way, operating fishing vessels continue to increase, and the number of fishing vessels becomes increasingly more numerous, thereby leading to a seriously excessive fishing capacity. Intense fishing competition not only brings serious adverse effects to the protection of fishery resources but also reduces the catch per fishing effort, leading to a decline or even exhaustion of fishery resources. 3. In many developing countries, due to population pressure, decreases in other employment opportunities, and economic underdevelopment, fisheries are often regarded as a last means of employment, and social opportunity costs are very low or even equal to zero. Additionally, because some of the labor force in the fishing industry is isolated from other production processes and in terms of market technology, it is difficult to move the labor force and funds appointed to marine fishery production. In addition, due to the low quality and education levels of the fishermen, the possibility of fishermen leaving the fishing industry and engaging in other occupations is also limited to a certain extent.

1 Introduction

15

4. In the case of free access to fishing, the marine fishing industry is a type of “stock” fishery. Because fishermen can freely and openly access fishing, in the years with a good catch yield, there is a large number of fishermen rushing into the fishing industry and building new vessels or updating fishing vessels, and it is extremely easy to access fishing. During these times, the cost of building a fishing vessel increases. However, due to the uncertainty and volatility of fishery resources, it also becomes difficult for fishermen who want to withdraw from the fishing industry in years with a poor catch yield, and the price of fishing vessels being sold decreases substantially with the poor resource status; therefore, an “easy entry, difficult exit” phenomenon emerges. In addition, the fixed costs of building a fishing vessel are quite high, the sunken assets are large, the period of use is long, and the damaging effect on fishery resources is serious and lasting.

1.2.4

Externalities in the Process of Fishery Resource Exploitation

Externality, also known as the spillover effect, external influence, or heterodyne effect, refers to the situation in which the actions and decisions of one person or one group of people cause damage or benefit to another person or group of people. Economic externalities are the nonmarketization effects of the economic activities that economic entities (including manufacturers or individuals) create for others and society. That is, when members of society (including organizations and individuals) are engaged in economic activities, their costs and consequences are not completely borne by the actors. They can usually be divided into positive externalities and negative externalities. Positive externalities are the activities of a certain economic individual participant that benefit others or society, for which the beneficiaries do not need to pay. Negative externalities are the activities of a certain economic individual participant that cause damage to others or society, but the person who has caused the external diseconomy does not bear the cost for it. In the process of fishery resource exploitation, the characteristics of externality are usually also present. Its externality refers to every external influence generated by a fisherman, and this influence is not included in the accounting of their economic costs. Its externality can also be divided into positive and negative aspects, but it is usually negative. When fishermen can freely enter and fish a certain fishery resource, negative externalities appear. In this type of fishery, a voluntary mutual cooperation agreement usually does not exist, often a single fishing vessel is used as the decisionmaking unit, and the respective maximum economic interests are used as the goal. In this case, the exploiter of the fishery resources does not consider the external effects he or she has generated on other exploiters. In most marine fisheries, there are usually three types of externalities, that is, externalities generated due to a decrease in the amount of resources, externalities generated due to operational crowding, and externalities generated due to fishing gear.

16

X. Chen

1. Externalities generated due to a decrease in the amount of resources (stock externalities)—These externalities are manifested as follows. When a new operating fishing vessel enters a certain fishery, due to the entry of this new fishing vessel, the ability of other fishing vessels to utilize the fishery resources will decreases, which thereby also increases the fishing costs of the other fishing vessels. Because the newly entered operating fishing vessel does not consider this cost and only considers its private costs per fishing voyage (that is, internal costs), it has neglected the external costs it imposes on other operating fishing vessels due to the comparatively small population numbers. 2. Externalities generated due to operational crowding (crowding externalities)— These externalities refer to the following: When all operating fishing vessels are gathered in a certain fishing ground, the marginal fishing costs increase; that is, operational crowding externalities are generated. The externalities depend on the scope of the fishing ground and the quantity of the catchable population. This externality not only increases marginal fishing costs but also adversely affects other fishing vessels in the fishing ground through issues such as safe production and the mutual influence of fishing vessels. 3. Externalities generated due to fishing gear (fishing externalities)—These externalities can also be divided into technological externalities, ecologically based externalities, and techno-ecological externalities.

1.2.4.1

Technological Externalities

Technological externalities refer to the dynamic changes in the amount of resources in target fish species and the corresponding bycatch species that have occurred because of the change in population structure due to fishing operations, which thereby generate a negative effect on other fishermen and affect the amount of resources in nontarget fish species. There are two types of technological externalities, that is, sequential externalities and incidental externalities. Sequential externalities—When artisanal and commercial fleets exploit different generations of the same fishery resource at the same time, due to the mutual influence between one another, sequential externalities are generated. For example, artisanal fleets carry out fishing in coastal water areas inhabited by juveniles, while industrialized fleets usually operate in deepwater areas in the open sea to fish for schools of adult fish. In this way, the increase in the fishing capacity of the artisanal fleets lead to overfishing of the recruitment stock; therefore, the utilization rate of resources by industrialized fleets declines in later stages, generating negative externalities to the industrialized fleets. Similarly, the increase in the fishing capacity of the industrialized fleets reduces the spawning population and affects the recruitment stock, generating an effect on the utilization rate of the artisanal fleets. Incidental externalities—These externalities refer to when interdependent fisheries in a fishing operation (set as Fishery A and Fishery B) use nonselective fishing gear (for example, the bycatch species for Fishery A is the target species of Fishery B). The bycatch caught by Fishery A reduces the amount of resources that constitute

1 Introduction

17

the target fish species for Fishery B. For Fishery A, the negative externalities generated are unaccounted for, which constitutes incidental externalities. This situation is most seen with shrimp trawling and demersal fisheries. For shrimp trawling fisheries, the bycatch usually involves other demersal fish species, which generates negative externalities for fleet fishing demersal species.

1.2.4.2

Ecologically Based Externalities

Ecologically based externalities can also be divided into externality under competitive coexistence conditions, externality by competitive release, and trophic-based externality. Externality under competitive coexistence conditions—Assuming there are two competing fish species that constitute the target species for different fisheries and that two fleets use different fishing intensities, the breadth and direction of the marine ecosystem would change thus generating an effect on the relative amount of resources in the two fish species. Assuming there are two fisheries, A and B, and competing species, S1 and S2 (they coexist and live when not exploited), if the intensity of fishing species S1 increases (Fishery A), the amount of species S2 increases (Fishery B). In this way, Fishery A generates a positive external effect on Fishery B, which constitutes externality under competitive coexistence conditions. Externality by competitive release—Assuming there is no human intervention, the competitively subordinate species S2 is pushed out by the dominant species S1. An increase in the fishing intensity of Fishery A decreases the amount of S1, leading to an increase in the amount of S2 and making its catch also increase. In this way, Fishery A generates a positive external effect on Fishery B, that is, externality by competitive release. Trophic-based externality—The relationship between predator (SPD) and prey (SP) also constitutes another type of externality. Assuming there is a species that complies with the predator–predator relationship of the Lotka-Volterra equation, increasing the fishing intensity by Fishery A (with the prey SP as the target fish species of Fishery A) leads to a decrease in the amount predator SPD (as the species for which Fishery B fishes), generating a negative externality to Fishery B. Similarly, an increase in fishing intensity by Fishery B and an increase in the amount of the prey species generate a positive external effect on Fishery A, that is, trophic-based externality.

1.2.4.3

Techno-Ecological Externalities

When fishing gear interferes with the habitat of the target species and other coexisting species (the target fish species of other fisheries), technologically and ecologically based externalities are generated. These externalities frequently occur with bottom trawling fisheries. For example, damage to the demersal biological

18

X. Chen

habitat would reduce the possibility of the renewed clustering and replenishment of fishes, but the quality of the fishing ground (such as viable space, food utilization rate, and so on) may possibly offset the effect of this externality.

1.2.5

Other Economic Characteristics of Fishery Resources

1.2.5.1

High Exclusion Costs

The essential characteristics of fishery resources (such as migratoriness, mobility, free access, and so on) determine the high cost of fishery management; that is, in fishery management, extremely high costs are required to exclude other fishermen from using a certain fishery resource at the same time. Under the system of open access to fishing, due to the high degree of uncertainty in the quantity of fishery resources, it is impossible for a fisherman to cause captured individuals to be larger and more valuable in the future and to obtain more benefits by prolonging the growth of individual fish because there is a possibility of those fish being caught by other fishermen during the growth process. In other words, by reducing his own fishing intensity, an individual fisherman cannot affect the quantity of fishery resources unless all or most fishermen agree to stop their fishing behavior. Therefore, each fisherman increases his or her fishing intensity, which generates high exclusion costs. Traditional methods for avoiding high exclusion costs include the establishment of effective organizational structures (such as a system of property rights, community-based common management methods) and workable management methods. In the current fishery resource management methods, there are at least four methods and approaches that can be used to solve the problem of high exclusion costs: realize the privatization of resources through the assignment of individual quotas; stipulate the size and composition of the catch and fishing intensity through government intervention; implement community-based fishery management systems; and integrate management methods for the aforementioned measures.

1.2.5.2

Social Traps in Fisheries and Free Rider Behavior

In the exploitation, utilization, and management of fishery resources, if there is no agreement on catch limits, the result of reducing the catch rate of one fisherman is the reduction in fishing costs for other fishermen, but without increasing his or her economic benefits (because in the case of open access to fishing, the exploitation of fishery resources eventually develops to the bioeconomic equilibrium point, that is, the position where total income is equal to total cost). Therefore, every fisherman increases his or her fishing intensity and catch rate, which damages the fishery resources, thereby generating long-term effects that are unfavorable to all fishermen. According to Schelling (1978), this constitutes a social trap in the exploitation and

1 Introduction

19

utilization of fishery resources because the short-term goals and micro-goals of an individual fisherman are inconsistent with the long-term goals that he/she and other fishermen expect. The short-term and micro-goals of fishermen are to obtain more catch yield as much as possible to increase their marginal benefits, while the longterm macro-goal (social goal) is to achieve maximum sustainable yield. In practice, uncertainty about the future available level of a fish population determines that longterm goals are often replaced by short-term marginal benefits.

1.2.5.3

High Transaction Costs

High transaction costs are often involved in the exploitation and utilization of marine fishery resources, which also weaken the effective allocation of fishery resources in terms of time. Usually, the transaction costs include information costs, enforcement or policy costs, and contractual costs. 1. Information costs Fishery resource management often requires extremely high information costs. The information costs come from scientific research input to different disciplines, that is, biology, ecology, statistics, and social economics, and so on. Such scientific research is needed for monitoring changes in fish population dynamics and population size, the marine environment, catch yield, and fishing effort as well as changes in time preferences generated due to market demand and fluctuations in fishery resources. The increase in fishing intensity is usually not accompanied by an increase in the amount of scientific and fishery information, but it leads to the emergence of poor management and overfishing, thereby increasing fishing costs and a corresponding reduction in resource rents. Due to the uncertainty that most natural system, biological, social, political, and economic factors have, which makes this situation more complicated, the number of unprofitable resource utilizers, the possibility of a population decline, and the disappearance of economic rents are greatly increased. 2. Enforcement costs Because the property rights of fishery resources are difficult to allocate and determine, the enforcement of fishery management or the implementation of policies requires high costs. In many cases, the scope of fishery management and fishery measure enforcement is extremely wide (such as oceanic fisheries); at the same time, fishery resources are easy for third parties to access in some coastal water areas (recreational fishermen can manually collect fish growing in intertidal zones). Therefore, the cost of enforcing fishery management is very large, and the effect is often not obvious. When such situations occur, the unenforceable right often becomes an empty right. High enforcement costs and low fishing operation costs have already led to a decline in many coastal fishery resources. 3. Contractual costs Assuming that fishermen obtain the right to exploit and utilize certain fishery resources through legal approaches, these exploitation rights are often obtained

20

X. Chen

through collective forms (such as fishery groups). In this case, the issue of contractual costs appear. Because a certain amount of cost is required to nurture and establish this organizational form, it is necessary to determine who will pay for this cost (the fishermen or the state). In a country and region without trade organizations (associations, fishery groups, and so on) and who exploit and utilize fishery resources through a large number of individual shipowners, it is extremely difficult to arrive at a certain contract through agreement, and the required contract and treaty costs are very high.

1.3

Development of Fishery Resource Economics

1.3.1

Evolution of Resource Economics

1.3.1.1

Emergence and Development of Resource Issues

The birth of any discipline results from the need to answer a specific question, and this question is often generated in the process of the development of human society. The resource issues encountered during human social and economic development and the increase in resource economic issues are the basic prerequisites for the emergence of resource economics.

Emergence of Resource Issues Resource issues or resource crises have always been an issue of most concern to all countries of the world and their scholars since the early twentieth century. Although they are raised more as negative issues of modern economic development, resource problems occurred in ancient times. For example, in the ancient Babylonian civilization, the irrigation system in the Mesopotamia region between the Tigris and Euphrates rivers failed to exploit water resources due to damage from the war, leading to soil salinization and loss of productivity, which still affects economic development today; the region’s cereal yield is only one-tenth of the normal yield. Viewed from modern European civilization, resource issues have also occurred before and generated serious effects on society and the economy at that time. For example, starting in the fourteenth century, Europeans used whale oil for indoor lighting because whale oil burned smoke-free and it was also very easy to catch whales; therefore, it became a precious fuel at the time. In the seventeenth century, due to the rapid development of the fishing industry and the overfishing of whales, the number of whales had greatly decreased, resulting in a drastic increase in whale oil prices, and a whale oil crisis occurred. The whale oil crisis was resolved only after people discovered coal gas and natural gas. Resource crises have only emerged in large numbers in the process of modern economic development since the twentieth century. After entering the twentieth

1 Introduction

21

century, especially after World War II, the speed of economic development became faster and faster. The unprecedented expansion of the economic scale led to a surge in the number of resource inputs, and the resource stock decreased sharply at an astonishing rate. The increasingly weak resource foundation along with a population explosion and environmental pollution together constitute a threat to the future survival and development prospects of human society. These resource issues manifest as follows. (1) Due to population growth, which has caused a rapid increase in the demand for resources, the contradiction between the supply capacity of resources and human demand has become sharper and sharper. In more than 100 years, the global population has soared by five billion, and it has now reached more than seven billion. Moreover, the speed of growth is faster and faster, and accordingly, the speed of growth in resource consumption is also accelerating. (2) The world is facing a serious energy shortage and resource exhaustion crisis. For example, 60% of regions worldwide have an insufficient fresh water supply, and more than 40 countries and regions have water shortages. (3) Large-scale exploitation of resources, inappropriate utilization modes, and excessive consumption have caused increasingly serious environmental damage, pollution, and ecological imbalances. Problems caused by resource consumption, such as water and air pollution, have not only made many natural resources lose renewal capability and become exhausted, but the environmental amenities people demand has also been lost, decreasing quality of life and even causing bodily harm. In short, the resource issues faced by humans are very serious. Problems such as overexploitation and unreasonable utilization of resources have also caused environmental problems to become increasingly prominent. Resource and environmental crises have become increasingly severe, forcing people to care increasingly more about resource issues and environmental issues and to continuously find effective approaches to solve resource problems and environmental problems.

Resource Economic Issues Resource economic issues are a series of problems based on people’s understanding of resource problems and proposals, from the perspective of economics, regarding reasonably and effectively exploiting and utilizing natural resources in order to satisfy people’s various ever-growing needs. Many problems are involved in the process of exploiting and utilizing natural resources by people. From the perspective of economic analysis, the following questions must be addressed. 1. What is the relationship between natural resources and social and economic development? To what extent do natural resources determine social and economic development? Can technological progress overcome the constraints of natural resource limitations on the economy? 2. How can limited natural resources be utilized economically and effectively? How can the effectiveness between different utilization modes for natural resources be

22

X. Chen

compared? How can the relationship between natural resource utilization, economic development, and environmental carrying capacity be balanced? 3. How can regional resource exploitation and utilization strategies be formulated, and how can regional resource advantages be connected with product advantages and economic advantages? 4. What effects will current resource economic policies generate in the future? The continuous exploration of all these issues has spurred the birth and development of resource economics, a new discipline in applied economics.

1.3.1.2

Emergence and Evolution of Resource and Environmental Economics

As stated above, in the continuous exploitation and utilization of natural resources, humans have generated many resource issues; additionally, abundant knowledge and experience have accumulated through solving these problems. That is, when people utilize natural resources and develop social production, they begin to study resource economic issues, and with the increasingly serious population growth and resource problems, they have further increased research on resource economic issues, thereby creating conditions for the emergence of resource economics. The study of resource economic issues can be traced back several thousand years. Ancient humans exploited natural resources, and there is no shortage of studies exploring such activity. However, research on resource economic issues and the formation and development of resource economics is a process of gradual forward development and step-by-step process. The systematic study of resource economic issues did not become a reality until capitalism. Resource economics became an independent discipline in the 1920s. Viewed from historical development stages, before the emergence of contemporary resource economics, the research on resource economic issues has roughly experienced three stages. 1. The first stage is from ancient society to the precapitalist era In the early period of this stage, due to the sparse population, the scope, scale, and depth of human exploitation and utilization of natural resources were extremely limited. Coupled with the low level of science and technology, the basic mode for exploiting and utilizing resources was “adaptation-utilizationrequest.” Additionally, due to the relative abundance of natural resources and little intensity in exploitation and utilization, the pressure on natural resources and the degree of damage to the environment were also very low. Therefore, the relationship between man and nature was more harmonious, and resource problems and resource economic issues rarely emerged. For example, in ancient times, people living along the coast used simple fishing gear to carry out manual operations in coastal water areas, and the catch was mainly for maintaining livelihood and food, without overfishing fishery resources. However, there were some regions and countries in which, due to the rapid increase in population, nature could not provide sufficient living materials and

1 Introduction

23

products for human demand, and humans were forced into overexploitation and predatory utilization of natural resources; the ecological environment was damaged, leading to further food shortages, especially biological resources. At this time, people had no choice but to consider how to treat nature and how to reasonably exploit and utilize natural resources to adapt to nature; thus, the simple view of “protect ecology based on experience and adapt utilization based on natural resources” emerged. This was mainly manifested in the writings and doctrines, which were rich in academic value, on agricultural resources and economic studies by some scholars in ancient China, ancient Greece, and the Roman era. The most important thoughts on ancient resource economics involve research results after the Zhou and Qin dynasties in China. The Chinese ancient book I Ching has doctrines on “yin-yang and the five elements” and “unity of heaven and humanity” for use in explaining the mysteries of nature and the relationship between man and nature, regarding heaven, earth, and man as a whole, and it was believed that as long as one adapted to nature and reasonably utilized nature, one was able to have an abundant harvest of the five grains; otherwise, one would be subjected to retaliation by nature, affecting the development of human society. Under the guidance of such thoughts, the holistic paradigm of heaven, earth, and man was used to regard man and nature and the utilization of resources. Guan Zhong, the Prime Minister of the State of Qi during the Spring and Autumn Period, thought that starting from the goal of developing the economy, enriching the state, and strengthening the military, one should protect the mountains, forests, rivers, and lakes and their biological resources, and he opposed excessive logging. Xunzi of the Spring and Autumn Period and Warring States Period protected natural resources as a strategy for administering state affairs and ensuring national security, paying particular attention to obeying the seasonal laws of ecology and attaching importance to the sustainable preservation and continuous utilization of natural resources. These are the embodiment of ancient simple thoughts on sustainable development. Additionally, they are also important thoughts for protecting natural resources and for utilizing natural resources in a timely and moderate manner. The above discussion is a concentrated reflection on the traditional view of resource economics at this stage in China, providing a simple source of thoughts for subsequent research and development in resource economics. 2. The second stage is from the germination and emergence of resource economics to the emergence of land economics in the 1920s This period was a very crucial period for the study of resource economics. During this period, the development of economics provided tools for the emergence and development of resource economics, which also became an important branch of applied economics. The study of resource economic issues was more affiliated with the economics discipline. In economics, the pioneer in the study of resource economic issues was William Petty, the founder of asset stages in classical political economics in seventeenth century Great Britain. He put forward the assertion that “labor is the father of wealth and land the mother.” In the

24

X. Chen

eighteenth and nineteenth centuries, David Ricardo, a well-known representative of the British school of thought in classical economics, and von Thunen, a wellknown German agricultural economist, respectively established the differential land rent theory and the agricultural location theory. The differential land rent theory can be described as follows: with the increasing scarcity of land, inferior land is also put into the agricultural production process, and the cost of agricultural products increases with the expansion of the production scale. This assertion was developed into the “Ricardo model.” The latter put forward the “agricultural location theory,” also known as the “location land rent theory,” through his own personal operation of a farm, which improved and enriched the land rent theory and land economics theory. After that, proletarian economists Marx and Engels conducted extensive research on land and other resource issues. In addition, A. Marshall, a British economist, made a special contribution to the economic activities of land, which was mainly reflected in his definition of land and the systematic analysis he conducted. He believed that “land refers to all the materials and the forces that nature gives freely for man’s aid in land, water, air, and light and heat.” The above representatives are the pioneers who opened up resource economics and early systematic research on resource economic issues. During this period, land was still the most important resource for economic development. They mainly carried out pioneering research on land economic issues and regarded land as a natural resource, focusing research on its economic significance and economic issues. Therefore, one can think of the study of resource economics mainly originating from economics and continuing to develop with the emergence of early resource economics-land economics. By the 1920s, with the emergence of geoscience, biology, ecology, and other disciplines, land economics as an independent discipline became independent from economics. The book coauthored by well-known US economists R. T. Ely and E. W. Morehouse, Elements of Land Economics, was published in 1924 and became the symbol of the emergence of early resource economics. Ely became the founder of land economics. Ely inherited Marshall’s definition of land and believed that “the meaning of the word land, in economic terminology, includes more than the mere surface of the earth; it includes all natural resources—forests, minerals, water.” Therefore, we can regard Elements of Land Economics, published by Ely and Morehouse, as early resource economics, which gradually gave rise to “natural resource economics” and “resource economics” in the modern sense. 3. The third stage is the development and improvement of resource economics, from the 1920s and 1930s to the 1970s and 1980s, and the emergence of resource and environmental economics. From the 1920s and 1930s to the 1960s, at the same time as the development of land economics, because some economists continued to open up new fields of research, natural resource economics and resource economics appeared successively. In 1931, US economist Harold Hotelling published The Economics of Exhaustible Resources, which raised the issues of resource protection and the assignment of scarce resources, and it was regarded as another symbol that

1 Introduction

25

resource economics was independent of economics research. In 1954, H. S. Gordon published the paper The Economic Theory of a Common-Property Resource: The Fishery. With the increase in the study of resource economics, many economists defined economics as the science that studies the utilization and assignment of scarce resources. With increasingly numerous works related to resource economics, many colleges and universities in Western countries successively established resource economics majors or provided specialized courses. Many economists, such as O. Lange and L. Robbins, even regarded the exploitation and utilization of resources as a synonym for economics. During this period, research on resource economic issues in the United States, the United Kingdom, and other countries and regions had increasingly become the core of the study on the functions of their social and economic systems. From the late 1960s to the 1970s, due to the increasing seriousness of population, resource, and environmental issues, the study of Western resource economics produced a new field. Its main symbol was the emergence of environmental economics. Environmental economics emerged under the backdrop of increasingly serious global environmental pollution and the appearance of environmental resource scarcity. It mainly uses the principles of economics, especially welfare economics, to study the economic issues in the interrelationship between economic development and environmental protection. Environmental Economics, coauthored by US-based J. J. Seneca and M. K. Taussig in 1974, is considered to be the first monograph on environmental economics in the world. Afterwards related disciplines, such as ecological economics, also emerged. The emergence of environmental economics and ecological economics generated a shift from a simple study of resource economic issues to a comprehensive study of population, resource, environmental, and ecological issues in order to solve complex resource and environmental economic issues and explore the future fate of the development of human society. In the early 1970s, D. H. Meadows was commissioned by the Club of Rome to publish The Limits to Growth, which stirred up the West. British economist Goldsmith published the masterpiece A Blueprint for Survival in 1972, and a later publication, Only One Earth all compiled threads of population, resource, and environmental issues together for additional investigation. This trend greatly affected the study of resource economics and caused the merger of resource economics and environmental economics; as such, resource and environmental economics emerged in the late 1970s and early 1980s. For example, Alan Randall published Resource Economics—An Economic Approach to Natural Resource and Environmental Policy in 1981 and pointed out: “Natural resource and environmental economics applies methods of economic theory and quantitative analysis to solve public policy problems such as the supply, allocation, assignment, and protection of natural resources and environmental amenities.” Resource economics does not only study the allocation of scarce resources but also environmental economic issues. In 1981, US-based Anthony C. Fisher published Resource and Environmental Economics. Subsequently, the study of resource economics in Western countries involved a comprehensive study of

26

X. Chen

resource and environmental issues, and most of its teaching materials used “resource and environmental economics” or “environmental and resource economics.” At the same time, the former Soviet Union also attached great importance to the study of resource economics. In 1982, T. S. Khachaturov published the book Natural Resource Economics, which discussed the issue of planned and reasonable utilization of natural resources from the perspective of ecological economics and focused on the principles and methods for the reasonable utilization of limited resources. These were all important advances in research on resource economics. In China, before liberation in 1949, courses in Land Economics had been offered at universities; in addition to using Elements of Land Economics by Ely et al. and his later Land Economics as textbooks, Decui Zhang also compiled Land Economics. However, after liberation in 1949, due to the influence of the former Soviet Union, which did not consider land and resource problems to be economic issues in a stateowned country, the teaching and study of land economics were interrupted and not restored until the 1980s. In addition, the study of resource economics and resource and environmental economics was still in the beginning stage. However, with the increasingly prominent relationship between China’s population, resources, and environment, the study of resource economics continued to deepen, and some works that established the discipline of resource economics were successively published.

1.3.2

Current State of Development in Fishery Resource Economics

The development of the entire discipline of resource economics, especially after the theory of sustainable development was put forward, has reached a comparatively mature stage. However, the study of fishery resource economics is still in a stage of development and improvement. Fishery resources are often analyzed as a typical case of “renewable resources” or “common property resources” in general resource economics. On the one hand, the study of fishery resource problems and their economic issues generally started later than did the disciplines of land economics and resource economics; on the other hand, due to the particularity of fishery resources themselves, characteristics such as mobility, common sharing, and other aspects make the study of economic issues in fishery resources extremely complicated. According to the development history of fishery resource economics, its development process can be divided into four stages: from ancient society to the precapitalist era; before the 1950s; from 1950s to the 1980s; and after the 1990s.

1 Introduction

1.3.2.1

27

From Ancient Society to the Precapitalist Era

This era represents the emergence period for simple thoughts on fishery resource economics. In ancient China, the great thinker Mencius criticized the practice of “draining the pond to catch all the fish,” which also became an epigram that was handed down. The well-known thinker Confucius wrote “the Master angled, but did not use a net. He shot, but not at birds perching,” which advocates fishing with a rod with only one hook instead of multiple hooks and shooting at birds in flight only, not birds in the nest (Sayings from the Analects of Confucius). During the Spring and Autumn Period and the Warring States Period, there were already thoughts on protecting pregnant and spawning birds, animals, fish, and turtles to benefit “sustainable use,” and there were decrees placing regular bans that closed mountains for afforestation. Therefore, the concept of “sustainability” was generated from an analysis on the utilization of renewable resources, such as fishery resources, and has had a long history in China. The emergence of this simple thought on fishery resource economics provided the basis for the future protection and reasonable utilization of fishery resources and the development of fishery resource economics.

1.3.2.2

The Precapitalist Era to before the 1950s

This stage involved the study of theories on fishery resource economics from the perspective of pure biology. In this period, the problem of overexploitation of fishery resources was not obvious, and fishery resource problems and their economic issues were not prominent. Humans began to record contents such as the morphology and habits of some aquatic animals and plants before the common era, but it was not until the mid-nineteenth century that surveys and studies of fishery resources started to be carried out in an organized and purposeful manner. In the mid-nineteenth century, a decline in fish yield appeared in Russian rivers. To ascertain the reason that caused the decline, K. M. Bap et al. surveyed fishery resources in six water areas, including the Baltic Sea, from 1851 to 1870. In 1883, well-known British biologist Huxley led a fish resources survey in the North Sea, and the survey concluded that fishing had little effect on fish resources. This viewpoint was called “the theory of no hidden marine fish resources.” This viewpoint generated adverse effects on the subsequent exploitation, utilization, and management of fishery resources. By the end of the nineteenth century and the beginning of the twentieth century, research work on fishery resources was more active. As represented by Heincke, Peterson, Hjort, and others, different theories and doctrines based on their own research results can be roughly divided into the three main doctrines: reproduction, scarcity, and fluctuation. For reproduction theory, fish resources are similar to the principal, and the catch is similar to interest. Heincke believed that fishing quotas should be stipulated so that fishing does not affect the principal. The range of movement of fishery resources, especially fish, is often greater than the water areas under the jurisdiction of a country. Therefore, to study and manage

28

X. Chen

fishery resources well, international cooperation is necessary for success. The International Council for the Exploration of the Sea (ICES), officially established in 1902 in Copenhagen, the capital of Denmark, is the world’s first international organization to study aquatic resources. The organization carried out biological research, such as the effects of the marine environment and fishing on fish resources. At the beginning of the twentieth century, Soviet scholar T. I. Baranoff first utilized advanced mathematical methods to study fishery resources. In a paper he published, On the Question of the Biological Basis of Fisheries (1918), he proposed a mathematical model for calculating yield. This result was of very high reference value for subsequent research on fishery resource economics. British scholar E. S. Russell (1931, 1939) published three important treatises. While establishing a general model of the changes in the number of fishery resource groups, he also provided in-depth descriptions and studies on the general course of fishery resource exploitation and utilization, overfishing, and other topics. In particular, the Russell principle proposed in 1931 summed up the four factors that affect fish population numbers—recruitment, growth, natural death, and fishing death. On the basis of the research by Baranov (1918) and Thompson and Bell (1934), Beverton and Holt (1957) successfully applied it to the von Bertalanffy growth equation and established the Beverton-Holt (B-H) model for yield per recruitment in 1957, which was broadly and effectively applied to single-stock assessments. On the basis of an S-curve study on fish population growth by Graham (1935), Schaefer used bighead flounder and yellowfin tuna in the northern North Pacific Ocean as examples and established a model of residual yield (Schaefer 1954). Cushing (1968, 1971, 1974, 1975, 1981) conducted many studies related to the dynamics of fishery resources and their ecology. However, the methods and theories in these studies mainly focused on singlespecies problems. With the continuous improvement in human capability in the exploitation of fishery resources, problems such as multispecies fisheries emerged, and the traditional theories and methods of the past were not fully applicable. Research on fishery resource problems was considered purely from a biological perspective. Some biomathematical models such as the Schaefer model, the Ricker model, and the Beverton-Holt model were used to assess the amount of specific fishery resources and the maximum sustainable yield.

1.3.2.3

Emergence and Development of Fishery Resource Economics from the 1950s to the 1980s

In 1954, H. S. Gordon introduced the concept of economic benefits and costs in the exploitation, utilization, and management of fishery resources. Connecting together the natural ecological processes of living things and the economic processes in resource exploitation, he proposed the concepts of “bioeconomic equilibrium” and maximum economic yield (MEY) and their methods and established the economic theory of open or public fisheries. This theory represents a milestone in the study of fishery resource economics.

1 Introduction

29

Afterwards, many scholars, such as Gulland (1977, 1983), Clark (1985), Cunningham et al. (1985), Anderson (1986), Hannesson (1993), and so on, proposed fishery resource economic theories and research methods from economic and social perspectives combined with the biological characteristics of fishery resources, providing a policy and theoretical basis for the sustainable use of fishery resources. C. W. Clark successively published articles such as “The Economics of Overexploitation,” “Economically optimal policies for the utilization of biologically renewable resources,” “Bioeconomic Analysis of Two Species,” and others. In 1976 and 1985, Clark published two monographs, Mathematical Bioeconomics: The Optimal Management of Renewable Resources and Bioeconomic Modelling and Fisheries Management. In 1977 and 1981, L. G. Anderson successively published The Economics of Fisheries Management and Economic Analysis for Fisheries Management Plans. In 1985, Cunningham et al. published the monograph Fisheries Economics: An Introduction. Griffin and Grant established a bioeconomic model of fishery resources with shrimp fisheries as the object of study; in addition to studying the changing relationship between biomass and the fishing efforts of the fleets, it also involved the supply–demand relationship, monthly rent, and other factors. After that, Blomo et al. (1978) applied this bioeconomic model to the shrimp fisheries in Galveston Bay and constructed a nonlinear optimization program on this basis that compared changes in the corresponding rent, total income, and cost under different management measures and proposed management measures and development suggestions for the shrimp fisheries based on the assessment results of the model. In the 1980s, Hannesson began to conduct in-depth studies on various aspects of fishery resource economics, such as an analysis on the discount rate effect of the optimal exploitation and utilization of renewable resources, a theoretical and empirical analysis of bioeconomic production function in fisheries, catch quotas and the amount of permitted catch, and other aspects, and published a monograph in 1993, Bioeconomic Analysis of Fisheries. Using the Schaefer bioeconomic model as the basis, Clark (1985) analyzed the effect of discount rates on the MEY of Antarctic fin whale fisheries and preliminarily established a dynamic bioeconomic model. The study held that the discount rate has an obvious effect on the exploitation and utilization strategies for Antarctic fin whales. Additionally, it was found in the analysis that a population with a small intrinsic rate of increase is sensitive to the discount rate, but a population with a large intrinsic rate of increase is not sensitive to the discount rate. In a bioeconomic model, Clark (1985) also explored the influence of the ecological effect and different fleets or fishing gear on resource allocation.

1.3.2.4

Rapid Development and Improvement in Fishery Resource Economics after the 1990s

Analysis of the Current State of Foreign Research In the 1990s, there were new developments in fishery resource economics, particularly in terms of bioeconomic modeling. In 1993, Hannesson published the

30

X. Chen

monograph Bioeconomic Analysis of Fisheries. Promptly, Defeo and Seijo (1999) established a bioeconomic model on the basis of the yield-mortality model. The study held that relative to the maximum sustainable yield (MSY) and in terms of its corresponding mortality as the management goal, it seems safer to use biological maximum production (BMP) and its corresponding fishing mortality as the management goal. After that, Seijo et al. (1998) constructed a dynamic bioeconomic model based on the Beverton-Holt age structure model, which explained the effect generated by the age at first capture on the amount of resources, yield, economic rent, and fishing effort; this result could not be expressed in the Gordon-Schaefer bioeconomic model. At the same time, Seijo et al. (1998) also more systematically developed the bioeconomic modeling problem of multiple fish species operations and carried out simulations, laying the foundation for subsequent related research work. McManus (1997) used the Gordon-Schaefer bioeconomic model to launch research on coral reef fisheries in Southeast Asia. He thought that trawling was the main cause of large-scale damage to coral reef fisheries in tropical regions and suggested reducing fishing efforts by at least 60% to ensure the optimized utilization of coral reef fisheries. During this period, the FAO of the United Nations successively compiled a series of bioeconomic analysis models, such as BEAM1 (Biology and Economic Analysis Model), BEAM2, BEAM3, BEAM4, and BEAM5 software. In the twenty-first century, research on the bioeconomic model of fishery resources developed rapidly, which was mainly reflected in increasingly more factors being considered in the model, especially in the results for the optimized allocation of resources simulated under different management strategies. For example, Pezzey et al. (2000) combined the fishery resource management measures in marine protected areas (MPAs) and constructed a sociobioeconomic model to study the equilibrium catch of fishery resources and their resource management strategies under maximum profit; this model is similarly applicable to marine demersal fishes. Smith et al. (2005) introduced Bayesian statistical methods in a bioeconomic model, established a dynamic bioeconomic model based on Bayesian theory, analyzed the fishery resource status in the Gulf of Mexico, and used the Markov chain Monte Carlo (MCMC) algorithm to analyze the effect of the establishment of MPAs on fish growth and their allowable catch, which provided a reference for the formulation of fishery management strategies. Domíguez-torreiro and Surís-regueiro (2007) combined game theory in economics with a bioeconomic model to carry out bioeconomic analysis on the transboundary Atlantic sardine (Sardina pilchardus) fishery jointly exploited by Spanish and Portuguese fleets. The study held that only under the premise of allowing the provision of side payments could the fishery producers of both countries cooperate in the joint exploitation and utilization of the sardine resource; in this way, it was possible to spur both countries into reaching a fishery cooperation agreement in order to increase economic benefits, providing a reference for the formulation of management strategies on the issue of transboundary fishery sharing. Kulmala et al. (2007) combined the biological, economic, and social factors involved in the individual transferable quotas (ITQs) of Baltic herring

1 Introduction

31

(Clupea harengus membras (L.)) fisheries to establish a comprehensive socialbiological-economic model and studied the optimal fishery management strategy for Finnish herring fisheries. Using the Lotka-Volterra predator-and-prey model as the basis, Das et al. (2009) combined marine environmental factors to establish a new comprehensive bioeconomic model. The study held that the Pontryagin’s maximum principle should be utilized to discuss the optimal harvesting strategy in fisheries with predator–prey relationships.

Analysis on the Current State of Research in China In China, there is still a gap in research on fishery resource economics compared with that in developed countries. In 1983, Zhou and Qiu translated the monograph Mathematical Bioeconomics: The Optimal Management of Renewable Resources by Canadian scholar Clark. It was the first book in China about renewable resource utilization and optimal management theory. In the 1980s, Ye and Zhu (1984) carried out a bioeconomic analysis on Spanish mackerel fisheries and used the GordonSchaefer and Fox bioeconomic models to discuss issues such as the economic benefits, energy, and employment of Spanish mackerel fisheries in the Yellow Sea, East China Sea, and Bohai Sea. The maximum economic benefit, optimal energy consumption, and optimal economic catch of the Spanish mackerel fisheries under different management goals were estimated and compared to thereby give corresponding management suggestions. Deng and Ye (1990) compiled the book Shrimp and Its Resource Management in the Bohai Sea and the Yellow Sea; taking shrimp as an example and using the Ricker model as the basis, two elements, fishery cost and fishery depth, were considered in studying the social and economic issues in shrimp fisheries related to the Bohai Sea autumn flood. Specifically, the model was utilized to explore economic benefits, energy consumption, and social employment and to find their optimal values, but the discount rate was not considered. Based on a bioeconomic model, Wang and Xiu (1995) combined economic factors and discount rates to study the effect of cost prices and discount rates on China’s management of shrimp and shrimp fisheries. Ye and Huang (1990) utilized a dynamic bioeconomic model to analyze and compare the short-term benefits and long-term benefits and provided an approximate method for determining the discount rate through mathematical derivation. In 1995, Professor Xiangguo Zhang from Shanghai Fisheries University translated the monograph Bioeconomic Analysis of Fisheries by Norwegian scholar Hannesson. According to the bioeconomic model for open fisheries, Chen (2002) analyzed how the relationship between species generated an effect on the optimized allocation of mackerel resources in the East China Sea, and his research results provided a reference for the scientific management of mackerel in offshore China. Liu and Chang (2006) analyzed the stability of the dynamic bioeconomic model for fisheries. In the model, the growth of fishery resources and fishing effort as time, the amount of resources, prices, and other factors were taken into account. Through the perturbation equation of the nonlinear model near the equilibrium point, local stability was

32

X. Chen

analyzed, which had a certain guiding significance for studying the law of change for the bioeconomic model and the formulation of management policies. Based on the Gorden-Schaefer static bioeconomic model, Chen (2006) theoretically explored the effect generated by fishery subsidies on China’s offshore fishing effort and resource status. Chen and Zhou (2002, 2003), and Chen (2004) established a theory and method for evaluating the sustainable utilization of fishery resources and used the East China Sea as an example to carry out research on the evaluation and early warning for the sustainable utilization of fishery resources. Lu (2010) carried out a bioeconomic analysis of the North Pacific squid (Ommastrephes bartramii) using the equilibrium values of the open fishing ground and the present value maximization fishery and simulated the dynamic changes in the amount of its resources and fishing effort; Zhang et al. (2009, 2010) established a bioeconomic model and resource exploitation strategy for mackerel in the East China Sea and the Yellow Sea under a static state; and Wang et al. (2011, 2012) studied the optimized allocation of mackerel resources in the East China Sea and the Yellow Sea and exploitation strategies and resource rent in a discount rate situation. Wang et al. (2013) designed multiple fishing schemes based on biological, economic, and social goals with different weights, established a comprehensive biological-economicsocial model for mackerel in the East China Sea and the Yellow Sea, and compared their short-term, medium-term, and long-term economic benefits and social benefits as well as the status of fishery resources under different management schemes. Using the Gordon-Schaefer bioeconomic model as the theoretical basis, Liu et al. (2014) utilized the production data and related economic data of Chinese squid fishing vessels in the Northwest Pacific Ocean and used ecological benefits, economic benefits, and social benefits as the data to establish the optimized allocation of squid resources, established a sociobioeconomic model for squid, and simulated the short-term, medium-term, and long-term fishery resource status, economic benefits, and social benefits of squid under different alternatives, which provided a reference basis for the scientific formulation of fishery management strategies for squid in the Northwest Pacific Ocean. Fishery resource exploitation and its optimized allocation is an open systematic project that involves not only the fishery resources themselves but also social, economic, political, and other factors. Therefore, the optimized allocation model for fishery resources has changed from single-objective to multiobjective optimized allocation and has gradually evolved from simple biological models, such as Schaefer’s and Fox’s yield models, to complex dynamic bioeconomic models. In the process of constructing the bioeconomic model, the dynamic parameters considered have also increased gradually, such as multiple fish species, multiple fleets, environmental changes, and climate change as well as social employment, market supply, and other factors. The interactions of these dynamic parameters and their uncertainty have made the research contents of bioeconomic models for fishery resources become very complicated. With the development of computer simulation technology, there is a deeper understanding and grasp of the characteristics of fishery resources. Although bioeconomic models of fishery resources have become increasingly more complex, scientists are still able to combine the uncertainty of various

1 Introduction

33

factors and simulate the effect of different fishery management measures and changes in the controllable factors on the optimized allocation of fishery resources through computer simulation technology, thereby providing fishery managers with a basis for decision-making. Bayesian theory, optimal control theory, game theory, decision theory, and so on, have been widely applied to bioeconomic models. A framework for the discipline of fishery resource economics has formed.

1.4

Research System of Fishery Resource Economics

Fishery resource economics is an important branch of applied economics, and its objects of study are fishery resources and fishery resource economic issues. A discipline system usually refers to the theories, methods, and knowledge system of a discipline, including the derived source and nature of the discipline, research objects, definitions and tasks, research objectives, contents and research methodologies, and so on. Because it originated from economics, it is a branch discipline of economics, and the nature of the discipline is social sciences. Therefore, the principles and methods of economics should be used to study fishery resource economic issues. Viewed from the emergence and development process of resource economics, the field and scope of research in resource economics is quite extensive, which has laid a generous foundation for the development of the discipline of fishery resource economics. However, to further improve and develop this discipline, it is necessary to make clear its objects of study, research contents, and research methods, and the establishment of a relatively independent and clear research system has important significance.

1.4.1

Objects of Study for Fishery Resource Economics

The perceptual objects of study for fishery resource economics are fishery resources and their exploitation and utilization. However, fishery resource economics is not a study of the fishery resource system and the natural laws and technological systems in its exploitation and utilization, but it is a study of the interactions between humans and fishery resources in the process of resource exploitation and utilization and a clarification of the objective laws of these relationships, that is, the economic laws of fishery resources. In other words, fishery resource economics is centered on the contradiction between the demand of human economic activities and the supply of fishery resources; it is focused on studying fishery resource problems and fishery resource economic issues related to this contradiction that occur in the movement process and the reflected economic relationships and on clarifying the reasons for the fishery resource economic issues and the theoretical principles of the approaches to their solutions, thereby revealing the objective laws of the allocation of fishery

34

X. Chen

resources in different regions and at different times in order to coordinate the relationship between the utilization of fishery resources and economic development and to realize the sustainable development of the fishery economy. Therefore, we can define fishery resource economics as “a discipline that utilizes the basic principles of economics to study the laws for current and future optimized allocation of fishery resources and the issues with its realization in the contradictory process between the demand of human economic activities and the supply of fishery resources.” Fishery resource economics mainly resolves how a society assigns its fishery resources between now and the future and how to assign the benefits generated by resource allocation decisions among all members of society, analyzes existing problems in the allocation of fishery resources and their economic causes, proposes various schemes and policy tools for solving these problems, and evaluates the benefits and costs of these schemes and policies and their effects on various aspects.

1.4.2

Research Content of Fishery Resource Economics

The fundamental tasks of the study of fishery resource economics are to clarify the objective laws of fishery resource economic issues and their changes on the basis of a correct understanding of the interrelationship between human exploitation and utilization and fishery resources and between fishery resources and economic development, to reveal the general laws and approaches for realizing the optimized allocation of fishery resources through the coordination of the relationship between the exploitation and utilization of fishery resources and economic development and for realizing the sustainable development of the fishery economy. The three themes of efficiency, optimality, and sustainable development run through the entire research process of fishery resource economics. Starting from the research tasks of fishery resource economics, the research contents involved in this book involve the following five aspects. 1. The relationship between the exploitation and utilization of fishery resources and social and economic development—This specifically includes: (1) understanding the concepts and basic characteristics of fishery resources; (2) the status and role of fishery resources and their exploitation and development in economic development; (3) fishery resource problems and their economic issues; and (4) the tasks of and methods for studies on fishery resource economics. 2. Basic principles of resource economics—As an important branch of economics, resource economics should make full use of economic analytical methods and establish a unique thinking system and basic analytical methods in connection with its own particular perceptual objects and objects of study, thereby forming the basic principles of the discipline. This mainly includes costs and benefits, basic principles for the optimized allocation of natural resources, the environment, and sustainable development. The basic principles of resource allocation

1 Introduction

35

depend on economics, especially the progress of microeconomics and institutional economics, and provide a theoretical foundation and methodological guidance for the allocation of different resources. 3. Allocation of fishery resources and their optimized utilization—The main contents include: (1) the allocation goals for fishery resources and the basic methods of optimized allocation; (2) the optimized allocation of resources for a single fish species and its model; (3) the optimized allocation of fishery resources and its model under the influence of ecology and technology; (4) the effect of discount rate on fishery resource allocation and its determination method; (5) the effect of fishery supply and demand on fishery resource allocation; and (6) the optimized multiobjective allocation of fishery resources. 4. Asset accounting of fishery resources and the evaluation of their sustainable utilization—Human demand for fishery resources is continuously increasing, which requires a corresponding expansion of the depth and breadth of natural resource exploitation and utilization. To this end, the accounting of fishery resources and the evaluation of exploitation projects and sustainable utilization need to be carried out. Due to the uneven geographical distribution of fishery resources, their quantity, quality, exploitation conditions, and degree of ascertainment vary from place to place. To scientifically, fully, and reasonably exploit and utilize various fishery resources, it is necessary to not only account for the quantity and quality of fishery resources themselves, as well as prices, but also necessary to perform corresponding evaluations on various aspects related to the exploitation of fishery resources, such as the distribution of fishery resources, exploitation conditions, economic value, environmental impact, sustainable development potential, and other aspects. 5. Exploitation and utilization systems and management of fishery resources—The research tasks of fishery resource economics are not only to study the optimal allocation of fishery resources but also to study objective approaches to the realization of optimized allocation and to realize the sustainable utilization of fishery resources and sustainable economic development. The realization of fishery resource allocation directly involves issues in terms of the economic institutional arrangements of fishery resource utilization and the use of economic management tools. Therefore, research on how to realize the effective allocation of fishery resources through institutional arrangements and utilization management adjustments has become one of the important contents of fishery resource economics.

1.4.3

Research Methods for Fishery Resource Economics

Overall, the research methods for fishery resource economics include (1) system analysis methods, that is, methods that combine synthesis with analysis; they are based on the whole with a focus on synthesis, and specific analyses are carried out on the basis of synthesis; (2) method that combine static analysis with dynamic

36

X. Chen

analysis; (3) methods that combine macroanalysis and microanalysis; and (4) methods that combine qualitative analysis with quantitative analysis. Taking a wide view on the emergence and development of resource economics, it uses economic theories and quantitative analysis methods to solve fishery resource exploitation and utilization issues, optimized allocation, resource protection and management, and so on; the theoretical basis on which it is based is microeconomics, the analytical method used is mainly the optimization theory, from mathematics, and the production function theory is the intermediary between the two.

1.4.3.1

Microeconomic Analysis Methods

Resource economics has established its own theoretical and methodological systems mainly based on the theoretical basis and analytical methods of microeconomics. From consumer theory, to firm theory, to market equilibrium theory, they are all basic theories and analytical methods of fishery resource economics. With the rise of welfare economics, fishery resource economics has also used theories and analytical methods of welfare economics to solve the problems related to imperfect markets and inefficient resource allocation, such as economic efficiency and social welfare theories, the judgment criteria and evaluation methods of various policy choices (such as the social welfare function, the Pareto security method, the benefit-cost method, etc.), the analytical methods of property rights theory, and so on.

1.4.3.2

Mathematical Analysis Methods

Like other economics fields, mathematical analysis methods in fishery resource economics are used to establish abstract models based on abstract and hypothetical conditions, establish function relationships for optimized resource allocation, and find optimization schemes for resource exploitation and utilization by deriving mathematical function relationships, thereby solving problem related to optimized resource allocation. This is one of the remarkable characteristics of fishery resource economics.

Theory and Methods of the Production Function Resource scarcity and the optimal allocation of resources are actually problems of solving for numerical extrema. For this reason, mathematical methods must be used to solve them, and the primary analytical tool is the production function. The so-called production function is the quantitative relationship between the input and output of resource elements, and a specific function model is established to provide a basis for calculating the profit maximization of inputs in resource elements. The production function theory includes the production function, cost function, and profit

1 Introduction

37

function. Assuming we use two resources, K and L, to produce the product Y, then the corresponding function forms are: Production function: Y ¼ f(K,L ). Cost function: C ¼ γK + ωL. Profit function: π ¼ pY – (γK + ωL). wherein γ, ω, and p are the unit prices of K, L, and Y, respectively.

Optimization Theory and Methods Optimization in terms of economics refers to the utilization of limited resource inputs to obtain the maximum output. The mathematical expression of the problem is how to find the maximum value of the objective function under certain constraints. Resource economics must study what utilization principles to adopt for different types of resources in order to obtain the maximum net income, which determines the important role that the optimization theory plays in resource economics. There is no resource economics without the optimization theory. The core problem with the optimization theory is solving for the extrema. The solution for a general extrema problem can be described by the following mathematical form: Objective function: Max

X1 , X2 , ^

Xn

fΦ ¼ f ð X 1 , X 2 , ^ X n Þ g

The constraints are: gi ð X 1 , X 2 , . . . , X n Þ ¼ 0

i ¼ 1, 2, . . . , m

Once the objective function and constraint formula for solving the problem are established, we can find the extrema of the objective function by finding the necessary conditions for the extrema to exist (that is, the partial derivatives of the extrema points of the objective function are zero) and find the amount of resource input at this time, that is, the amount of optimal input. In addition, to solve the optimization problem, mathematicians have also proposed methods such as dynamic optimization, linear programming, and nonlinear programming. Thus, we can utilize optimization methods, from static to dynamic and from linear to nonlinear, to solve complex resource economic problems. At the same time, game theory has been increasingly more widely applied to the analysis of resource utilization systems as well as in the analysis of cross-regional or transboundary resource exploitation and utilization issues.

38

1.4.4

X. Chen

The Role and Significance of Fishery Resource Economics

Fishery resource economics is a discipline that studies the issues of the optimized allocation of fishery resources and how to realize allocation. The role and significance of carrying out research in fishery resource economics mainly manifest in the following ways: 1. Through the study of fishery resource economics, we fully understand the essential characteristics of fishery resources and the reasons that fishery resource problems and their economic problems are generated, which provides a scientific basis and basic theories for the sustainable exploitation and utilization of fishery resources. 2. Through the study of fishery resource economics, we master the optimized allocation model for fishery resources under various situations and analyze the results of fishery resource allocation under different exploitation strategies, which provide a scientific basis and basic theories for the sustainable exploitation and utilization of fishery resources. 3. As an important branch of natural resource economics, improving the discipline of resource economics provides a basis for the allocation and sustainable utilization of renewable resources that feels reasonable. 4. In a situation in which the world’s fishery resources are generally declining or overutilized, carrying out research in fishery resource economics helps to improve and develop fishery management methods and measures and provides a theoretical basis for the sustainable exploitation and utilization of fishery resources.

References Anderson LG (1986) The economic of fisheries management, Revised and enlarged edition. The John Hopkins University Press, Baltimore Baranov FI (1918) On the question of the biological basis of fisheries. Nauchn Issled Ikhtiologicheskii Inst Izv 1:81–128 Beverton RJH, Holt SJ (1957) On the dynamics of exploited fish populations. Fish Invest London Ser II 19:1–533 Blomo V, Stokes K, Griffin W et al (1978) Bioeconomic modeling of the Gulf shrimp fishery: an application to Galveston Bay and adjacent offshore areas. South J Agric Econ 10(1):119–125 Chen JY (2002) An empirical study on utilization patterns of Chub mackerel resource in the East China Sea-a bioeconomic analysis of interspecific relationships. University of Taiwan. (in Chinese) Chen XJ (2004) Evaluation theory and method of sustainable utilization of fishery resources. China Agriculture Press. (in Chinese) Chen JN (2006) The impact of fishery subsidies on the sustainability of fishery resources. Ocean University of China. (in Chinese)

1 Introduction

39

Chen XJ, Zhou YQ (2002) Grey relative correlation evaluation of sustainable utilization of fishery resources. J Fish China 4:331–336. (in Chinese) Chen XJ, Zhou YQ (2003) Evaluation of early warning system for sustainable utilization of fishery resources based on BP model. Chin Fish Econ 3:23–25. (in Chinese) Clark CW (1985) Bioeconomic modelling and fisheries management. John Wiley & Sons, New York Cunningham S, Dunn M, Whitmarsh D (1985) Fisheries economics: an introduction. Mansell Publishing Ltd., London Cushing DH (1968) Fisheries ecology: a study in population dynamics. University of Wisconsin Press, Madison Cushing DH (1971) Upwelling and the production of fish. Adv Mar Biol 9:255–334 Cushing DH (1974) A link between science and management in fisheries. Fish Bull 72:859–864 Cushing DH (1975) Marine ecology and fisheries. Cambridge University Press, Cambridge Cushing DH (1981) Fishery biology. University of Wisconsin Press, Madison Das T, Mukherjee RN, Chaudhuri KS (2009) Harvesting of a prey-predator fishery in the presence of toxicity. Appl Math Model 33(5):2282–2292 Defeo O, Seijo JC (1999) Yield–mortality models: a precautionary bioeconomic approach. Fish Res 40(1):7–16 Deng JY, Ye CC (1990) Shrimp and its resource management in the Bohai Sea and the Yellow Sea. China Ocean Press. (in Chinese) Domíguez-Torreiro M, Surís-Regueiro JC (2007) Cooperation and non-cooperation in the Iberoatlantic sardine shared stock fishery. Fish Res 83(1):1–10 Graham M (1935) Modern theory of exploiting a fishery and application to North Sea trawling. J Cons Int Explor Mer 10:264–274 Gulland JA (1977) Fish population dynamics. John Wiley & Sons, London Gulland JA (1983) Fish stock assessment: a manual of basic methods. John Wiley & Sons, New York Hannesson R (1993) Bioeconomic analysis of fisheries. Fishing news books. Blackwell, Oxford Kulmala S, Peltomäki H, Lindroos M et al (2007) Individual transferable quotas in the Baltic Sea herring fishery: a socio-bioeconomic analysis. Fish Res 84(3):368–377 Liu ZF, Chang ZY (2006) Stability analysis of simple fishery bio-economic dynamic model. Fish Econ Res 3:2–5. (in Chinese) Liu JL, Chen XJ, Li G et al (2014) Bio-economic model and management strategy of Ommastrephes bartramii fishery in northwest Pacific Ocean. Acta Ecol Sin 34(17):5040– 5051. (in Chinese) Lu SH (2010) Bioeconomic analysis of Ommastrephes bartramiii in the Northwest Pacific Ocean. National Sun Yat-sen University. (in Chinese) McManus JW (1997) Tropical marine fisheries and the future of coral reefs: a brief review with emphasis on southeast Asia. Coral Reefs 16(1):121–127 Pezzey JCV, Roberts CM, Urdal BT (2000) A simple bioeconomic model of a marine reserve. Ecol Econ 33(1):77–91 Russell ES (1931) Some theoretical considerations on the ‘overfishing’ problem. J Cons Int Explor Mer 6:3–20 Russell ES (1939) An elementary treatment of the overfishing problem. J Cons Int Explor Mer 110:5–14 Schaefer MB (1954) Some aspects of the dynamics of populations important to the management of commercial marine fisheries. Bull Inter-Am Trop Tunna Comm 1:27–56 Schelling TC (1978) Micromotives and macrobehavior. W.W. Norton & Company, New York Seijo JC, Defeo O, Salas S (1998) Fisheries bioeconomics-theory, modeling and management. FAO Fisheries Technical Papers 368 Smith MD, Zhang J, Coleman FC (2005) Bayesian bioeconomics of marine reserves. Am Agric Econ Assoc:1–22

40

X. Chen

Thompson WF, Bell H (1934) Biological statistics of the Pacific halibut fishery. 2. Effect of changes in intensity upon total yield, and yield per unit gear. Rep Int Fish Comm 8:48 pp Wang WB, Xiu LH (1995) Effects of economic factors and discount rate on shrimp fishery in China. Fish Sci 14(3):3–9 Wang YL, Chen XJ, Li G (2011) Dynamic bio-economic model of Chub mackerel in the East China Sea and Yellow Sea based on discount rate. Res Sci 33(11):2157–2161. (in Chinese) Wang YL, Chen XJ, Li G (2012) A preliminary study on the rents of Chub mackerel fishery resources in the East China Sea and Yellow Sea. J Shanghai Ocean Uni 21(6):1046–1052. (in Chinese) Wang CJ, Chen XJ, Li G (2013) Study on optimal allocation of Chub mackerel based on bioeconomic and social comprehensive model in the East China Sea and Yellow Sea. J Shanghai Ocean Univ 22(4):623–628. (in Chinese) Ye CC, Huang B (1990) Mathematical and theoretical biology: resource assessment and management. China Agriculture Press. (in Chinese) Ye CC, Zhu DS (1984) The best economic effect of Japanese Spanish mackerel fishery. J Fish China 8(2):171–177. (In Chinese) Zhang GW, Chen XJ, Li G (2009) Bioeconomic model and management strategy of Chub mackerel in the East China Sea and Yellow Sea. J Shanghai Ocean Univ 18(4):447–452. (in Chinese) Zhang GW, Chen XJ, Li SL et al (2010) Bioeconomic model and management strategy of Scomber japonicus in the East China Sea and Yellow Sea based on multi-fleet operation. Resour Sci 32 (8):1627–1633. (in Chinese)

Chapter 2

Basic Principles of Resource Economics Xinjun Chen and Gang Li

Abstract Fishery resource economics is not only a part of Applied Economics but also a part of natural resource economics. It is the application of the theories and methods of Applied Economics and natural resource economics in the optimal allocation and sustainable exploitation and management of fishery resources. As a person engaged in the research and study of marine fishery science and technology, he usually does not have the basic knowledge of economics and natural resource economics. Therefore, in this chapter, we will briefly introduce the general concepts, basic theories, and research methods of economics and natural resource economics, and put forward the relationship between resources, environment, and sustainable development, so as to make a foundation for further study in the future and provide the theoretical basis for the optimal allocation and scientific management of fishery resources. The main contents of this chapter are: (1) introducing the static and dynamic cost-benefit analysis in the basic theory of economics; (2) introducing the basic principle of rational allocation of natural resources, the basic method of profit maximization and resource allocation; (3) describing the relationship between resources, environment, and sustainable development, putting forward the reasons for the problems of resources and environment, and focusing on the basic theory, basic principles, basic characteristics, and realization ways of sustainable development. Keywords Resource Economics · Economics · Fishery resource economics · Sustainable development

X. Chen (*) · G. Li College of Marine Sciences, Shanghai Ocean University, Lingang Newcity, Shanghai, China e-mail: [email protected]; [email protected] © China Agriculture Press 2021 X. Chen (ed.), Fisheries Resources Economics, https://doi.org/10.1007/978-981-33-4328-3_2

41

42

2.1

X. Chen and G. Li

Costs and Benefits

2.1.1

Static Cost and Benefit Analysis

Economics is the study of how a society uses scarce resources to produce valuable commodities and to assign those to different individuals. The core ideas of economics are material scarcity and the effective utilization of resources. In general, the foundation of economic theories is laid on the assumption of “maximization” and that everyone will select the option that is most favorable to oneself under limitations. Economics is the study of decision-making by rational people. Decision-making is choosing between different schemes, and people make decisions between revenue and losses. When there are multiple options, the goal of rational people is always to maximize the net revenue (equal to revenue minus loss). If we use value to measure loss and revenue, then loss is referred to as cost and revenue is referred to as benefit, resulting in the simplest form of a cost-benefit analysis. If we choose from several resource allocation schemes at the same time point, then this method is referred to as the static efficiency criterion. If a certain resource allocation maximizes the net benefits of resource use, then this allocation of resources satisfies the static allocation criteria.

2.1.1.1

Cost Analysis

The Meaning of Cost and the Cost Function Cost refers to the various expenses in production, that is, the sum of the remuneration paid for the various production factors used. The composition of cost is complex and very difficult to measure accurately. Due to different accounting systems, there will be different methods of calculating cost. In terms of economics, the meaning of cost can generally be understood from the following aspects. Explicit Cost and Implicit Cost Explicit cost refers to the various actual expenditures in production. Implicit cost is a subjective loss for a producer to engage in a certain activity, without external manifestation. Implicit cost is often explained by opportunity cost. Opportunity cost refers to the loss of potential revenue generated by a resource, for a resource that has multiple uses, used in other areas after a producer choosing to use it for one area generated the maximum revenue. For example, if someone has CNY 10,000, if these funds are deposited in a bank, CNY 1000 in interest can be obtained in 1 year; and if the individual opens a restaurant, the income in 1 year can be CNY 1200; if the individual buys stocks, CNY 1500 of dividends can be obtained; naturally, the individual will choose to invest in stocks. At the same time, the individual must

2 Basic Principles of Resource Economics

43

give up the income of CNY 1200 that may be obtained by opening a restaurant; therefore, the opportunity cost for the individual to buy stocks is CNY 1200. Accounting Cost and Economic Cost Accounting cost is the actual spending in production, which can be reflected in the books and is also referred to as explicit cost. Economic cost is an expected cost. It is the sum of the explicit cost and the implicit cost, that is, economic cost ¼ accounting cost + opportunity cost. Cost in economics refers to economic cost. This relationship exists between cost and output: from the best element combination points, the number of combinations for (L, K) can be determined; from the production function Q ¼ f (L, K), the output Q under this combination can be obtained; and c ¼ pl  L + pk  K can be determined from the isocost curve. One can see that the unique relationship between the output Q and the cost c can be determined according to the best combination point (L, K) of each element. This relationship is referred to as the cost function; that is, c ¼ f(Q).

Short-Run Cost Analysis In short-term production or investment, there are fixed factors of production and variable factors of production, therefore, correspondingly, there are fixed costs and variable costs. Short-Run Total Cost (STC) 1. Total fixed cost (TFC) TFCs are costs paid by a manufacturer for the fixed inputs that cannot be changed in the short run, which mainly include land rent, interest, depreciation and maintenance expenses for factory buildings and equipment, property taxes, insurance premiums, salaries for standing senior management personnel, and so on. Because the number of fixed production factors does not vary with the changes in output, the number of fixed costs is fixed and does not change with changes in output. Even if a manufacturer stops business and does not produce anything, it still has to pay its fixed costs (Fig. 2.1). The TFC line is a straight line parallel to the horizontal axis, with an intercept on the vertical axis (Fig. 2.1). 2. Total variable cost (TVC) TVCs are costs paid by a manufacturer for the variable inputs it uses, which mainly include wages for production workers, raw material costs, fuel and power costs, and so on. Because the number of variable production factors changes with changes in output, variable costs also change with changes in output and have a certain regularity (Fig. 2.2). Before the output reaches Q1, because the efficiency of various production factors is gradually realized, the TVC increases with a decreasing rate, but the TVC increases with an increasing rate between Q1 and Q2. When the output reaches Q2, the TVC increases infinitely (Fig. 2.2).

44 Fig. 2.1 TFC curve

X. Chen and G. Li C

C0

0

TFC

Q

Fig. 2.2 TVC curve

Fig. 2.3 TC curve

3. Total cost (TC) STCs are all costs consumed in the production of a certain amount of product, which is equal to the sum of the fixed costs and the variable costs. The STC increases with the increase in output; it manifests as a curve rising from the lower left to the upper right, starting from the vertical axis intercept C0; that is, the TVC curve and the TFC curve are added together to obtain the STC curve (Fig. 2.3).

2 Basic Principles of Resource Economics

45

Fig. 2.4 Distribution graph of the AFC curve

Short-Run Average Cost (SAC) The SAC refers to the average unit production cost, which is equal to the TC to output ratio. Average Fixed Cost (AFC) The AFC refers to the fixed cost consumed per unit of product, which is equal to the TFC to output ratio. Its formula is: AFC ¼ TFC=Q Because the TFC is unchanging, the AFC decreases with the increase in Q, and it manifests on the graph as a curve that declines from the upper left to the lower right (Fig. 2.4). Average Variable Cost (AVC) The AVC refers to the AVC consumed per unit product, which is equal to the TVC to output ratio. Because the TVC can be expressed as the product of the element price PL and the element input L, the AVC formula is: AVC ¼ TVC=Q ¼ pl  L=Q ¼ pl =ðQ=LÞ Because the average output of the variable element APL is equal to the total output Q divided by the input of variable element L, the AVC formula can be transformed into. AVC ¼ PL =APL This formula indicates that the AVC and the average output present an inverse relationship. Because the element price PL is unchanging, when the average output increases, the AVC decreases; when the average output decreases, the AVC

46

X. Chen and G. Li

Fig. 2.5 Distribution graph of the AVC curve

Fig. 2.6 Distribution graph of the SATC curve

C

C

SATC AVC D

B E A 0

Q1

I H G

F Q2

Q3

AFC Q

increases; and when the average output reaches the maximum, the AVC reaches the minimum. It can be seen from Fig. 2.5 that the AVC manifests as a U-shaped curve.

Short-Run Average Total Cost (SATC) The short-run average total cost is the STC amortized per unit of product, which is equal to the STC to output ratio. Its formula is: SATC ¼ STC=Q ¼ TFC=Q þ TVC=Q ¼ AFC þ AVC In other words, an average TC curve is obtained by adding up the vertical distances of the AVC curve and AFC curve at each respective output level (Fig. 2.6). When the output is Ql, the AFC is QlB, the AVC is QlA, and QlB + QlA ¼ Q1C, then point C is a point on the average TC curve. When the output is Q2, the AFC is Q2E, the AVC is Q2F, and Q2E + Q2F ¼ Q2D, then point D is another point on the average TC curve. Similarly, many points on the average TC curve can be obtained, and a short-run average total cost curve is formed by connecting them (Fig. 2.6). It can be seen from Fig. 2.6 that the lowest point of the SATC is point I, which is located to the right of the lowest point of the AVC, point F; this shows that the ratio of the minimum average TC to minimum AVC is reached at a greater output (Q3 > Q2). When the output exceeds Q2, the AFC decreases, and although the AVC starts to increase, the magnitude of the increase is not as great as the magnitude

2 Basic Principles of Resource Economics

47

of the decrease. When the output continues to increase to Q3, the increased AVC is offset by the decreased AFC, and the average TC decreases to the lowest point, after which the average TC starts to increase.

Short-Run Marginal Cost (SMC) Marginal cost refers to the total cost increase caused by the last added unit of product, which is equal to the incremental STC (ΔTC) to incremental output (ΔQ) ratio. Its formula is: SMC ¼ ΔTC=ΔQ ¼ ΔTVC=ΔQ þ ΔTFC=ΔQ Because the fixed cost is fixed, ΔTFC ¼ 0; therefore, if the incremental output tends toward zero, the marginal cost is equal to the derivative of the TC or TFC to the output; that is: SMC ¼ dTC=DQ ¼ dTVC=dQ Because the TVC is equal to the product of the input of variable element L and its price PL, the SMC formula can be expressed as: SMC ¼ dðPL  LÞ=dQ ¼ PL  dL=dQ Because the marginal output MPL ¼ dQ/dL, the SMC formula can be changed to: SMC ¼ PL =MPL This formula indicates that the SMC is equal to the element price multiplied by the reciprocal of the marginal output. Because the element price is a constant, when the marginal output increases, the marginal cost decreases; when the marginal output decreases, the marginal cost increases; and when the marginal output reaches the maximum, the marginal cost reaches the minimum; therefore, the SMC presents as a U-shaped curve (Fig. 2.7). Fig. 2.7 Distribution graph of the SMC curve

48

X. Chen and G. Li

Fig. 2.8 Distribution graph of the curves for the relationship between (a) STC and (b) unit cost

Relationship between STC and Unit Cost In Figure 2.8a, on the TVC curve, when the output is Q1, the TVC is Q1A. According to the definition of average cost, the average cost at point A is QlA/OQl, which is exactly the slope of the ray that passes from the origin to point A. Therefore, the average cost is the slope value for the line between each point on the TVC curve and the origin. Viewed from the graph in 2.8a, on this TVC curve, the slope of the ray at point C is the smallest; therefore, the average cost at point C is the lowest, such as point C0 in the graph in 2.8b. Before point C, the slope of the ray goes from large to small; that is, the average cost goes from large to small; after point C, the slope of the ray goes from small to large, and then the average cost also changes from small to large. The two rays at points A and E overlap, showing that the average costs at the two points A and E are equal, such as points A0 and E0 in the graph in b. When the output increases from Q3 to Q4, the TVC increases from Q3C to Q4D. According to the definition of marginal cost, the marginal cost from point C to point D is: Q4 D  Q3 C DF ΔTVC ¼ ¼ ΔQ OQ4  OQ3 CF

2 Basic Principles of Resource Economics

49

When ΔQ ! 0, the marginal cost of point C is the slope of the tangent to point C on the TVC curve. Therefore, the marginal cost is the slope of the tangent at each point on the TVC curve. It can be seen from the graph in 2.8a that the tangent at point C coincides with the OC ray, showing that the average cost is equal to the marginal cost at point C. Because point B is the inflection point, the slope of its tangent is the smallest; that is, the marginal cost at point B is the lowest, matching with point B0 in 2.8b. Before point B, as the output increases, the TVC increases at a decreasing rate, and the slope of the tangent changes from large to small. After point B, as the output increases, the TVC increases at an increasing rate, and the slope of the tangent changes from small to large. Therefore, the change in marginal cost is from large to small, reaching the lowest at point B0 , and then, it starts to increase, intersecting with the lowest point of the AVC at point C0 .

Relationship between Marginal Cost and Short-Run Unit Cost It can be seen from Fig. 2.9 that except for the AFC curve, which continuously decreases, the other three unit cost curves are U-shaped and first decrease and then increase. When the marginal cost is located below the average cost, the average cost is reduced; when the marginal cost is located above the average cost, the average cost is increased; and when the average cost is at the lowest point, the marginal cost is equal to the average cost. In Fig. 2.9, the marginal cost curve for SMC intersects with the curve for AVC at point A and intersects with the average TC SAC at point B. A and B are the lowest points of the AVC and the SAC, respectively. However, point A is located to the left of point S, indicating that the marginal cost curve intersects with the lowest point of the AVC curve at a lower output Q1 and intersects with the lowest point of the average TC curve at a higher output Q2. The reason has been explained previously. At point B, SMC ¼ SAC, and microeconomics refers to it as the “breakeven point,” where there is no excess profit but where economic profit (also known as normal profit) is obtained; therefore, it is also called the “economic energy point.”

Fig. 2.9 Graph of the relationship between marginal cost and short-run unit cost

SMC

C

SAC AVC B

S AFC

A O

Q1

Q2

Q

50

X. Chen and G. Li

Long-Run Cost Analysis In long-term production or investment, a manufacturer has enough time to adjust its volume of all inputs to facilitate production by using the lowest cost. Correspondingly, there is no difference between fixed costs and variable costs in long-term production or investment; there is only long-run TC, long-run average cost, and long-run marginal cost. Long-Run Total Cost (LTC) The LTC refers to the total amount of cost paid in the production of a certain output over a long period of time. It changes with the changes in output and varies due to the different scales of production used. As output increases, it first increases at a decreasing rate and then increases at an increasing rate after the turning point. However, unlike the STC curve, it starts from the origin; this is because there is no fixed cost in the long run. When the output is zero, the TC is also zero. Whereas the STC curve increases from a certain level of fixed cost, when the output is zero, it is not zero but still has a certain fixed cost. In the long run, because the manufacturer has enough time to adjust its volume of use of all inputs, the lowest cost can be used to carry out production, which is to say that the LTC curve is tangent to the lowest point of a list of STC curves (Fig. 2.10). Therefore, the LTC curve is smoother than the STC curve. Long-Run Average Cost (LAC) The LAC is the TC borne per unit of product in the long run, which is equal to the TC divided by the output. From the short-run cost analysis, the average cost curve can be derived from the TC curve. There is a ray from the origin to each point of the LTC curve, and then the slope value of each ray is drawn on a graph to obtain the LAC curve (Fig. 2.11). The LAC curve can also be derived from a group of SAC curves. In the long run, a manufacturer can adjust the production scale according to the size of the required Fig. 2.10 Distribution graph of the LTC curve

2 Basic Principles of Resource Economics

51

Fig. 2.11 Distribution graph of the LAC curve

output. Now, assume that the manufacturer has four production scales to choose from (Fig. 2.11): SACl, SAC2, SAC3, and SAC4 represent the short-run average cost curves of the four (from small to large) production scales, respectively. Which production scale is chosen by the manufacturer depends on the output that the manufacturer plans to produce. When the output is less than Ql, the manufacturer chooses the first production scale to carry out production, as the average SACl is the lowest at this time; when the output is between Q1 and Q2, the manufacturer should choose the second production scale to carry out production, as the average SAC2 is the lowest at this time; when the output is between Q2 and Q3, the manufacturer will choose the third production scale to carry out production, as the average cost SAC3 is the lowest at this time; and when the output is greater than Q3, the manufacturer chooses the fourth production scale to carry out production, as the average cost SAC4 is the lowest at this time. The curved portion below the intersection points of the short-run average total costs corresponding to these four production scales is the LAC curve of the manufacturer; that is, the manufacturer adjusts its production scale in a case where it has only these four scale options, and, thus, always produces the required output at the lowest average cost and is always in the lowest cost status. When a manufacturer can choose among n production scales and n tends to infinity, the LAC curve manifests as a smooth curve, and each point on the curve represents the tangent point (such as A, B, C, D) between the lowest SAC curve and the LAC curve. However, notably, to the left of the lowest point of the LAC curve, the LAC curve is tangent to the left of the lowest point of the SAC curve; to the right of the LAC curve, the LAC curve is tangent to the right of the lowest point of the SAC curve (Fig. 2.11); and only at the lowest point of the long-run cost curve are the lowest points of the two cost curves tangent. The LAC curve, similar to the SAC curve, is also U-shaped and first decreases and then increases, but the causes are different. The former is due to the existence of economies of scale, and the latter is due to the existence of the law of diminishing marginal returns. The former curve is smoother than the latter because the scale can be adjusted.

52

X. Chen and G. Li

Fig. 2.12 Distribution graph of the LMC curve and the SMC curves

Long-Run Marginal Cost (LMC) The LMC refers to the change in the TC caused by a change in the last unit of output in a case where the manufacturer is able to change its volume of use of all inputs. The LMC curve can be derived from the LTC curve; it consists of the slope value of the LTC curve at each output. It can also be derived from the SMC curve. As shown in Fig. 2.12, SACl, SAC2, and SAC3 are three short-run average cost curves representing three different scales, respectively. They are tangent to the LAC curve at El, E2, and E3, respectively, and SMCl, SMC2, and SMC3 are the three SMC curves corresponding to the aforementioned SAC curves. As seen in Fig. 2.12, in terms of the output Ql, the SAC and the LAC are both equal to QlEl. The equal LAC and SAC show that the LTC and STC are also equal and tangent in terms of this output; thus, the LMC and SMC are also equal. In other words, in terms of the output Ql, the SMC is QlEl, and the LMC is also Q1E1’. Therefore, the point El’ is a point on the LMC curve. In a similar way, E2’, E3’, and all other points on the LMC curve can be obtained. Connecting El’, E2’, E3’, and other points together forms an LMC curve. The relationship between the LMC curve and the LAC curve is the same as the relationship between the SMC curve and the SAC curve and is not repeated here. Although the law of change for the long-run cost function and the short-run cost function is the same, the reasons for the change are not the same. The law of change for short-term costs depends on the law of diminishing marginal returns. Because long-term production or investment means that a manufacturer has enough time to adjust its production scale, long-run costs are determined by the law of change in economies of scale.

2 Basic Principles of Resource Economics

2.1.1.2

53

Revenue Analysis

The Concept of Revenue Total Revenue (TR) TR refers to all income obtained by a manufacturer from the sale of a certain volume of product. Its formula is: Total revenue ðTRÞ ¼ average revenue ðARÞ  sales volume ðQÞ ¼ selling price per unit commodity ðPÞ  sales volume ðQÞ

Average Revenue (AR) AR is the average income obtained by a manufacturer per unit product sold, that is, the average selling price of each commodity. Its formula is: Average revenue ðARÞ ¼ total revenue ðTRÞ=sales volume ðQÞ ¼ price per unit product ðPÞ

Marginal Revenue (MR) MR refers to the revenue that can be increased from the sale of each additional unit of product by the manufacturer. Its formula is: Marginal revenue (MR) ¼ TR increment (ΔTR)/sales volume increment (ΔQ). When the sales volume increment ΔQ ! 0, then there is: MR ¼ dTR=dQ

Revenue under Different Price Statuses Revenue in an Unchanging Price Status In a perfectly competitive market, individual manufacturers are price receivers, and they can only sell any number of commodities under an established price condition. As shown in Table 2.1, the increased revenue from a manufacturer adding one unit of output is the price of this unit of output. Therefore, the selling price of a unit of product is equal to both the AR and the MR. In a perfectly competitive market, the consumer is also the price receiver, and he can only buy any number of commodities according to an unchanging market price. Therefore, the demand elasticity at this

54

X. Chen and G. Li

Table 2.1 Revenue situation in an unchanging price status Output (Q) 1 2 3 4 5

Price (P) 10 10 10 10 10

Total revenue (TR) 10 20 30 40 50

Average revenue (AR) 10 10 10 10 10

Marginal revenue (MR) – 10 10 10 10

P TR

10

dd AR=MR=P

0

Q

TR: Total revenue curve; dd: Average cost curve; MR: Marginal revenue curve

Fig. 2.13 Distribution graph of the TR and MR curves. TR Total revenue curve, dd Average cost curve, MR Marginal revenue curve

time is infinite, as shown in Fig. 2.13. It is a straight line parallel to the horizontal axis. Its intercept on the vertical axis is the market price determined by the total supply and demand of the commodity. Moreover, this demand curve is the AR curve and the MR curve of the manufacturer, that is, P ¼ MR ¼ AR.

Revenue in a Decreasing Price Status In an imperfectly competitive market, the price of a commodity depends on the output of the manufacturer, and the market price decreases as the output increases. At this time, the demand curve for the manufacturer declines from the upper left to the lower right (Fig. 2.14). The AR of a unit of product is still equal to the selling price and decreases as the selling price decreases, but the MR decreases faster than the AR (Table 2.2) because if the revenue (MR) brought by the increase in one unit of output is lower than the average level of the original output, then the AR obtained by adding all these revenues together and taking the average anew is obviously lower than the original AR. That is, when the MR is lower than the AR, the AR will decrease. Moreover, even if the MR has decreased more greatly, after it is shared equally on all outputs, it will only cause a comparatively small decrease in the AR. Therefore, as output increases, the AR decreases slowly, but the MR decreases rapidly.

2 Basic Principles of Resource Economics

55

TR: Total revenue curve; dd: Average cost curve; MR: Marginal revenue curve

Fig. 2.14 Distribution graph of the TR and MR curves. TR Total revenue curve, dd Average cost curve, MR Marginal revenue curve Table 2.2 Revenue in a decreasing price status Output (Q) 1 2 3 4 5

Price (P) 9 8 7 6 5

Total revenue (TR) 9 16 21 24 25

Average revenue (AR) 9 8 7 6 5

Marginal revenue (MR) – 7 5 3 1

In a situation with decreasing prices, the increase in TR presents a decreasing trend. When the MR is equal to zero, the TR reaches the maximum; when the MR changes from zero to a negative number, the TR starts to decrease.

2.1.1.3

The Principle of Profit Maximization

The business goal of a manufacturer is not to pursue output maximization or cost minimization but to pursue profit maximization. Of course, this does not mean that the manufacturer always tries to maximize profits under any circumstance (especially in the short run). In addition to profit maximization, the maintenance or expansion of market share, creation or maintenance of a good social image, fulfillment of social responsibilities, maintenance of a satisfactory financial situation, establishment of harmonious employee-employer relations, etc., are also a manufacturer’s goals. However, these goals are nothing more than a means in striving for long-term profit maximization. If a manufacturer cannot obtain profits from production, it will not produce; if there is not enough profit, other business goals are out of the question. Therefore, the supposition that the goal of a manufacturer is profit maximization is reasonable and basically close to the facts.

56

X. Chen and G. Li

Fig. 2.15 Schematic diagram of the distribution of total profit curves based on the (a) TR and TC, and (b) MC and MR

In microeconomic analysis, profit (π) is defined as the difference between TR and TC, and its formula is: Profit ðπÞ ¼ total revenue ðTRÞ  total cost ðTCÞ ¼ TR  ðaccounting cost þ OCÞ ¼ ðTR  accounting costÞ  OC ¼ accounting profit  normal profit Profit (π) in economics refers to excess profit, also called economic profit. Because TR and total cost (TC) are both functions of output, profit (π) can also be expressed as a function of output. The aforementioned formula can be written as: π ¼ πðQÞ ¼ TRðQÞ  TCðQÞ If the difference is positive, then profit maximization has reached a maximum; if the difference is negative, then profit maximization has reached a minimum; that is, the loss is at a minimum. The profit function can also be described graphically. In Fig. 2.15a, the horizontal axis represents output, and the vertical axis represents TC, TR, and TP. TC is the total cost curve, and its shape is determined by the law of diminishing marginal returns. TR is the total revenue curve, and its downward bend is due to diminishing

2 Basic Principles of Resource Economics

57

marginal utility. Due to diminishing marginal utility, the price tends to decrease as the output increases, and TR, which is expressed as the product of price and output, increases in a decreasing proportion. π is the total profit curve, and its shape depends on the distance between the TR curve and the TC curve. When the output increases initially, TC is greater than TR; thus, profit is a negative number. After the output is increased to Ql, the increase in output makes TR greater than TC; thus, profit becomes a positive number. When the output increases to Q2, the distance between TR and TC reaches the maximum; hence, profit also reaches the maximum, which is represented by the highest point F on the profit curve. If the output continues to increase from Q2, the distance between the TR curve and TC gradually decreases, and the total profit also decreases until the output is Q3; then, profit becomes zero again. Subsequently, as the output continues to increase, profit becomes a negative number (Fig. 2.15). From this, when a manufacturer fixes the output at Q2, profit is maximized. At this time, the slope of the tangent (AA0 ) to the TR curve is equal to the slope of the tangent (BB0 ) to the TC curve; thus, the principle of profit maximization is obtained: Marginal cost ðMCÞ ¼ MR This point can also be proven from the total profit function. Because total profit (π) is a function of output, finding the maximum profit is finding the maximum value of the function. Then, according to mathematical principles, π0 (Q) ¼ TR0 (Q)  TC0 (Q) ¼ 0. Therefore, the necessary condition for profit maximization is: TR0 ðQÞ ¼ TC0 ðQÞ; that is, MR ¼ MC;or MR ¼ MC. However, the output Q that satisfies the condition MR ¼ MC cannot necessarily maximize the profit because MR ¼ MC can only show that there is an extremum value for profit at the output level of Q; it may be a maximum value, but it may also be a minimum value. As shown in Figure 2.15b, point E0 is the minimum profit point. Therefore, in order to ensure Q is the output level that maximizes profit, the sufficient condition for profit maximization must also be satisfied: second derivative less than zero. That is, when π0 (Q) ¼ 0, π00 (Q) < 0. Hence, π00 (Q) ¼ TR00 (Q)  TC00 (Q) < 0. That is, TR00 (Q) < TC00 (Q). That is, the rate of change (slope) of MR is less than the rate of change (slope) of MC. Through the above analysis, it is known that the necessary condition for profit maximization is MR ¼ MC and that the sufficient condition is when the slope of the marginal revenue curve MR is less than the slope of the marginal cost curve MC. In Figure 2.15b, although both points E and E0 satisfy MR ¼ MC, only the slope of the marginal revenue curve at point E is less than the slope of the marginal cost curve,

58

X. Chen and G. Li

and the slope of the marginal revenue curve at point E0 is greater than the slope of the marginal cost curve. Therefore, only at the Q2 output level corresponding to point E does the manufacturer’s profit reach the maximum.

2.1.2

Dynamic Cost and Benefit Analysis

2.1.2.1

The Concept of Time Preference

The Concept and Meaning of Time Preference Time preference is the ratio of people’s degree of satisfaction with the present to the degree of satisfaction with the future. The more people dislike the present, the lower their time preference is. Many economists use “time preference” to emphasize the temporal embodiment of individual behaviors driven by various reasons, including the use of it to explain “interest” and “discount.” For example, suppose an individual has the option to consume a certain article at different times (now or later); then, consuming an article in a certain period is not the same as consuming the same article in another period. Even if the price is constant and unchanging, the individual’s degree of satisfaction with his or her consumption at present is still not the same as with consumption later. Therefore, each member of society has a time preference for the consumption of goods at different periods, which can be expressed by using the marginal time preference rate (MTPR). If it is the same for a certain individual to spend 1 USD this year or spend 1.1 USD next year, then his or her per year MTPR is 10%. The MTPR is used to measure the degree of change in the preference rate caused by a slight increase in consumption over time. Its prerequisite is that consumers have different expectation values for consumption in different periods. In fishery production and fishery development, the decision to exert fishing effort is associated with the expectation of fishing units (such as fishing boats and fishing gear) and a firm belief that positive profits or good economic benefits can be generated within the life cycle. As a key factor in fishery investments and fishery development, time is extremely important. The way to solve this problem is to take into account the degree of preference for the consumption of a certain article at different times. In fishery resource exploitation and utilization, time preference may not be static and, instead, change, for the following two reasons: (1) the nature of renewable resources means that over time, their availability will change, and their distribution range has uncertainties; and (2) according to the different types of fishery resources, there are different MTPRs for resource utilizers. For example, a fishery with open access to fishing (open style) usually has a high MTPR because fishery resources have some essential attributes, such as fluidity, high uncertainty, and so on. In this way, stimulation in the short run will increase fishing effort, as fisheries fundamentally do not take into account the future. In industrialized fisheries, during the planning and implementation of fishery activities, their input often cannot be

2 Basic Principles of Resource Economics

59

recovered immediately. Therefore, the life cycle of fishing gear should be taken into account when evaluating the time range of an investment, current and future costs, and income that may be obtained from fishing operations. In addition, in fisheries under a preventive management measure (such as restricting access to fishing), the MTPR is usually comparatively low, the purpose of which is to return the investment and to utilize resources continuously and for a long time.

Time Preference Types The marine fishing industry is used as an example to illustrate time preference types. Suppose a fisherman has to decide how to assign his fishing activities in two periods t1 and t2, and suppose that the fisherman’s income is Q1 in period t1 and that the income is Q2 in period t2, with Q1 ¼ Q2. In Fig. 2.16, Ia is the indifference curve for fisherman A, which represents the time preference of resource use in the two consecutive periods. WW is the time budget value line and W ¼ Q1 + Q2. The slope of WW is 1; this way, on a 1:1 principle, income can be transferred from a certain period to another period. The indifference curve passes through the reference points (common points) Q1 and Q2. If, in the periods t1 and t2, his or her preference for fishing activities is the same, that is, Q1 ¼ Q1a and Q2 ¼ Q2b, then fisherman A’s time preference is neutral, which is referred to as neutral time preference. Now assume there is a fisherman B and a utility function (indifference curve Ib) at two different time periods t1 and t2 (see Fig. 2.17). If the fishing activities can be reassigned in different periods (or the income can be transferred to different periods), fisherman B may transfer some of his fishing activities from t2 to t1, and his or her total income will become Q1b þ Q2b . At this time, fisherman B has a positive time preference or a high MTPR because he or she would rather engage in fishing activities immediately and is unwilling to carry out fishing in a later period; that is, Fig. 2.16 Neutral time preference

60

X. Chen and G. Li

Second year total consumption (Income)

Fig. 2.17 Positive time preference

W

Positive time preference Q2 Q*2b I*b Ib 45° 0 W Q1 Q*1b First year total consumption (Income)

Fig. 2.18 Negative time preference

W

Q*2c

Negative time preference

Q2

I*c Ib

45° 0

Q*1c Q1

W

First year total consumption (Income)

he or she would rather sacrifice future fishing activities or fishing catches in exchange for an increase in the current fishing catch. At this point, Q1 < Q1b and Q2 > Q2b . This type of situation is referred to as positive time preference. If fisherman C (Fig. 2.18) has a negative time preference or a low MTPR, he or she will transfer current fishing activities or fishing catches to be carried out later. This way, his or her income becomes Q*1c + Q*2c. This way, there will be an optimal

2 Basic Principles of Resource Economics

61

time preference for consumption between WW and the indifference curve I c . At this time, Q1 > Q1c and Q2 < Q2c . This type of situation is referred to as negative time preference.

2.1.2.2

Discount Rate

When the time factor is not very important or is not taken into account, static efficiency criteria are very useful when comparing different resource allocation schemes. However, in real life, many resource allocation problems involve choosing between different times and generations. For example, pollutants will accumulate over time; once nonrenewable resources are exploited, they will decrease over time, and the overexploitation of renewable resources will also affect the ability for resources to regenerate, etc. These will all affect the use of natural resources by coming generations. To this end, we need to make decisions on whether to use the resources now or in the future, how much is used now, how much will be used in the future, and so on. What criteria do we use to make decisions when costs and benefits occur in different time situations? To solve this problem, economists have extended the concept of static efficiency to the concept of dynamic efficiency. The concept of dynamic efficiency considers not only costs and benefits but also the effect of time on costs and benefits. Taking into account the effects of time, a method must be created to compare the net benefits that occur at different times. To compare the benefits at this point and at that point, future values are converted into present values to facilitate comparisons. Money has time value. That is, 100 CNY today has a higher value than 100 CNY tomorrow because if 100 CNY is deposited in a bank today, plus interest, it will be more than 100 CNY tomorrow. If the annual interest rate is 10%, a loan of 100 CNY today will become 110 CNY on the same day next year (100 CNY in principal plus 10 CNY in interest). Conversely, if the interest rate is 10%, the present value of 110 CNY in hand next year is 100 CNY. We can use 110/(1 + 0.1) to find the present value of 110 CNY on the same day next year. If 100 CNY is deposited into the bank today and the compound interest calculation method is used, it will be 100  (1 + 0.1)  (1 + 0.1) ¼ 100  (1 + 0.1)2 ¼ 121 CNY in 2 years; then, the present value of 121 CNY in hand after 2 years is 121/(1 + 0.1)2 ¼ 100 CNY. From the above analysis, the present value of the one-time net benefit obtained in the nth year in the future can be determined using the following formula: PVðBn Þ ¼ Bn =ð1 þ r Þn The present value of a series of net benefits obtained in n years in the future (Bi obtained each year from year 0 to year n) is determined using the following formula:

62

X. Chen and G. Li

PVðB0 , Δ, Bn Þ ¼

n X

Bi=ð1þrÞi

i¼0

In the formula, r is the interest rate; the process for calculating the present value is called discounting; therefore, r is also referred to as the discount rate; Bi is the net benefit obtained at time i; and. n is time. The concept of utilizing a discount can be referred to as dynamic efficiency, that is, dynamic cost-benefit analysis. If a resource allocation scheme spanning n periods is dynamic and effective, then in the dynamic cost-benefit analysis, the goal of resource allocation is to make the present value of net benefits obtained in n periods reach the maximum.

2.2 2.2.1

Basic Principles of Natural Resource Optimization and Allocation Basic Principles of Resource Allocation

So-called natural resource allocation refers to the specific embodiment or evolutionary process of the combination relationship between natural resources and between natural resources and other economic elements in terms of temporal structure, spatial structure, industrial structure, and so on. Therefore, natural resource allocation involves the comprehensive utilization of resources; that is, it refers to the combination of one or more types of natural resources and other economic element resources, and this combination relationship has different embodiments in different times, spaces (regions), and industries. Moreover, the allocation of natural resources is realized through certain mechanisms in accordance with certain goals and guidelines. The overall goal of natural resource allocation is the realization of the optimization and sustainable use of natural resources. For this reason, in addition to following the maximization principle in the principles of economics in the process of natural resource allocation, the principle of combining economic benefits, ecological benefits, and social benefits, the principle of rational assignment of interests, the principle of multilevel comprehensive utilization of natural resources, the principle of adapting to local conditions, and so on, should also be followed. In this section, the basic principles in the process of natural resource allocation are specifically expounded upon in terms of time according to the overall goals and main principles of natural resource allocation. Natural resources have different use values at different times, mainly for the following several reasons: (1) at different times, the technical conditions for natural resource exploitation and utilization are not the same; therefore, the efficiency of natural resource exploitation and utilization is also not the same; (2) due to changes

2 Basic Principles of Resource Economics

63

in the state of existence and possession and use costs of natural resources, the value and benefits of natural resources in different periods will differ; (3) at different stages of social and economic development, the level of demand for natural resources is not the same; therefore, there will be differences in the benefits resulting from natural resource allocation; (4) due to the uncertainty of natural resources, including human behavior in different periods during the process of natural resource exploitation and utilization, there are differences in benefits; and (5) due to the basic features of the natural resources themselves, such as scarcity and so on, it necessary to make reasonable time arrangements for their exploitation and utilization. Now assume that a certain type of natural resource uses one unit of this type of natural resource at a certain time t0, the generated value is q0, and at the same time, its corresponding paid cost is c0; then, the net output for this type of natural resource exploitation and utilization is q0  c0. Similarly, the net output at time t1 is q1  c1,. . ., and the net output at time tn is qn  cn. Assume the time difference between t1 and t0 is n years. Because the value of one unit of money is not the same at different times, for this reason, it can be changed to the present value through a discount rate. If the revenue from this kind of natural resource exploitation and utilization in the nth year (qn  cn)/(1 + r)n is greater than the revenue from the present exploitation and utilization (q0  c0), then compared with the present, this type of natural resource should be exploited in the nth year; conversely, it should then be exploited and utilized at present. Assume that natural resources can be used for exploitation and utilization for n years. For the natural resource exploitation and utilization decision-makers, the hope is to make the present net income inflow (PV) reach the maximum through natural resource exploitation and utilization. That is: X ð q  ci Þ q1  c 1 q2  c 2 q  cn i þ^þ n þ n ¼ i 2 1þr ð 1 þ r Þ ð1 þ r Þ i¼0 ð1 þ r Þ n

PV ¼ ðq0  c0 Þ þ In the formula,

i is the ith period of natural resource exploitation and utilization; PV is the total present value of net income; q0 is the value generated from the use of one unit of natural resources in period t0; c0 is the cost generated from the use of one unit of natural resources in period t0; qi is the value generated from the use of one unit of natural resources in period ti; ci is the cost generated from the use of one unit of natural resources in period ti; and, r is the discount rate. The size of the discount rate has an extremely important effect on natural resource exploitation and utilization. Most environmental economists believe that the higher the discount rate is, the more people are encouraged to consume natural resources earlier until exhaustion (some economists also believe that there is no inevitable connection between high discount rates and environmental damage). However, how much is currently being exploited and utilized, and how much is left pending future

64

X. Chen and G. Li

exploitation and utilization? This question can only be determined with the size of the discount rate required. Generally, a reasonable resource exploitation and utilization mode is established on the basis of the sustained use of natural resources. For the long term, the natural resources consumption rate must be balanced with the natural resources regeneration rate. Once the discount rate is higher than the natural resources maximum growth rate, the exhaustion of natural resources is likely. This means that in carrying out natural resource exploitation and utilization activities, people should be especially careful about delay effects brought by the determined discount rate. Policies formulated with excessively high discount rates often run counter to the realization of the goal of intergenerational equity. However, it also cannot be said that the lower the discount rate is, the better. In terms of public investment decisions, the general discount rate may be on the high side, especially for decisions on the assignment of natural resources by period; the social discount rate that is used should be lower than the general discount rate, for the following reasons. (1) Private decisions cannot fully take into account the overall benefits and long-term effects of natural resource exploitation and utilization; the public sector has a greater responsibility in terms of protecting natural resources and safeguarding the long-term interests of humans, and greater weight should be given to the future with the use of a lower discount rate. (2) Natural resource exploitation and utilization and assignment in terms of time often involve intergenerational assignment, and decisions are made by people in the present age. Future generations do not have the ability to protect their own interests and have no right to speak in natural resource assignment decisions, which is especially true when the decisions involve the interests of several generations. Therefore, a lower discount rate should be used consciously to safeguard the interests of future generations. (3) Market interest rates and earnings yields are determined by a variety of factors and often fluctuate. They cannot reflect normal time preferences. Additionally, among the many different interest rates and earnings yields, choosing the one to use as the benchmark to reflect the OC of natural resource utilization is challenging. (4) Market interest rates and earnings yields include the investment risk insurance factors of the private sector. This issue must be taken into account in enterprise decisions, but it can be ignored in social decisions by the public sector because many risks are caused by the transfer of revenue or costs, which have not resulted in loss in terms of society as a whole. Because of the above reasons, many people believe that the public sector should choose a lower social discount rate to reflect the “social time preference” in decisions regarding resource exploitation and utilization.

2.2.2

Social Cost Structure of Resources

When the market price of resources exists, the market is effective for determining the allocation of resources. However, when the market price of resources does not exist or cannot reflect the social cost of resource utilization, the market cannot be used effectively to determine resource allocation. The reason the market cannot be used

2 Basic Principles of Resource Economics

65

effectively to determine allocation is because when enterprises make production decisions, they only calculate the private cost of production according to the market price of resources and do not take into account social costs. For example, paper mills pour wastewater into rivers, which does not increase any private costs in terms of the paper mills but does result in river pollution, affecting downstream fishery production and residents’ diet and health and thus generating social costs. Therefore, when making decisions, society must take into account the full social cost of resource utilization. Social cost is the total OC paid when the whole society engages in certain activities, which is equal to the sum of private cost and external cost: Social cost ¼ private cost þ external cost External costs are the costs of the effects private activities cause externally without bearing. For example, when someone smokes, it causes air pollution; this is part of the social cost, but the person does not bear it; therefore, it is an external cost. Environmental costs are part of external costs. Marginal social opportunity cost (MSOC) is the sum of marginal private cost (MPC) and marginal external cost (MEC). The marginal social cost curve is actually the social supply curve, that is, the cost paid by society to produce one piece of product again. How many products society produces rests with society’s willingness to pay. Society’s willingness to pay is the benefit from producing one piece of product again that society expects to obtain, that is, marginal social revenue, which is equal to private revenue (in the case of public goods, the sum total of private revenues) plus marginal external revenue, wherein the marginal external revenue can be positive or negative. MSR ¼ MPR þ MER In the formula, MSR is the marginal social revenue (MSR); MPR is the marginal private revenue (MPR); and. MER is the marginal external revenue (MER). MSR is a social demand function that represents the price that society is willing to pay to purchase one piece of product again. MSR ¼ MWTP¼DS. MSOC¼SS. In the formula, MWTP is the marginal willingness to pay, and. DS is the social demand curve. MSR is society’s marginal willingness to pay, which is also the social demand curve.

66

X. Chen and G. Li

MSOC is the cost to society for producing one unit of product again, which is also the social supply curve SS. The equilibrium price jointly determined by SS and SD is the full cost price to society. The MEC can also be divided into marginal user cost (MUC) and marginal external environmental cost (MEEC). MUCs are costs generated from the use of nonrenewable resources now rather than leaving them to future generations. Therefore, marginal social cost is composed of MPC, MUC, and MEEC: MSOC ¼ MPC þ MUC þ MEEC In the formula, MPC is the marginal private cost; MUC is the marginal user cost; and MEEC is the marginal external environmental cost. This way, when determining the full cost price to society, the social supply curve and the social demand curve must be taken into account. They may differ from the private supply and demand curves. In the situation of environmental pollution, private costs are often lower than social costs. Because private enterprises in the market only take into account private costs when making decisions, they will produce too many products, resulting in a waste of resources and environmental pollution.

2.2.3

Profit Maximization and Resource Allocation

2.2.3.1

Exploitation and Utilization of a Single Resource

In economics, it is often assumed that in resource exploitation and utilization, the decision-makers use the pursuit of profit maximization as the goal. Assume that the unit output in the exploitation and utilization of a certain type of resource in a region is constant; then, as the amount of exploitation of this type of resource becomes greater, the output will also increase by the same proportion. Set the output in the exploitation and utilization of this type of resource as q, the income obtained as TR, and the price of the resource exploitation product as p; then, TR ¼ p  q. Its cost in the exploitation of natural resource also rests with the output of resource exploitation q; then, the profit π(q) is: πðqÞ ¼ TRðqÞ  TCðqÞ As shown in Fig. 2.19, to realize profit maximization, the decision-makers of resource exploitation and utilization choose the output when the difference between income and cost is at the maximum. Income TR(q) is a curve that shows that output can only increase by relying on reducing the price. The slope of this line represents

2 Basic Principles of Resource Economics

67

C(q): Cost curve; R(q): Income curve; π(q): Profit curve; *

q : Output when profit is maximized; q0: Output when profit is zero (initial)

Fig. 2.19 Short-term profit maximization of resource exploitation and utilization. C(q): Cost curve; R(q): Income curve; π(q): Profit curve; q*: Output when profit is maximized; q0: Output when profit is zero (initial)

the amount of increase in income whenever the output increases by one unit, which is MR. Because cost includes fixed cost and variable cost, TC(q) is not a straight line, and its slope is a measure of the amount of increase in cost for each additional unit of output, that is, MC. Because there are fixed costs in the short term; when the output is zero, TC(q) is positive. When the output is at a low level (less than q0), its profit is negative because its income is not enough to offset fixed costs and variable costs (when q ¼ 0, profit is negative due to the existence of fixed costs). At this time, MR is greater than MC, which means that increasing the output will increase profit. As the output increases, profit will become a positive value (when q is greater than q0) and continue to increase until the output reaches q*. At this time, MR is equal to MC, and the straight-line distance, AB, between income and cost reaches the maximum value. Correspondingly, π(q) also reaches the maximum, and q* is the output when profit is maximized. Once the output exceeds q*, MR is less than MC, with a decrease in profit. At this time, the rapid growth of the TC in production is also reflected. When MR is equal to MC, profit maximization is realized. This rule applies to all ways of resource exploitation and utilization. In short-term resource exploitation and utilization behavior, the amount of capital for resource exploitation and utilization is fixed; thus, its variable input level (such as labor, fuel, etc.) must be chosen to reach profit maximization. The short-term decisions by resource exploitation and utilization personnel are shown in Fig. 2.20. The average revenue curve and the MR curve are both horizontal lines, and the price of the resource exploitation and utilization

68

X. Chen and G. Li MC

Price (CNY/unit output)

60 q1 W1.

Determination of the Maximum Social Welfare Point The maximum social welfare point can be determined by placing the social indifference curve and the total utility possibility curve on a graph. In Fig. 2.24, the social indifference curve W2 is tangent to the utility possibility frontier at point E, and this point represents the only combination point of production, exchange, and assignment at which the social welfare that can be obtained is at a maximum under the constraints of established production factors (established resources), technological conditions, and personal preferences; it represents the maximum satisfaction point under the constraints and is the best combination point of efficiency and equity for the entire society. After finding the maximum satisfaction point under the constraints, one can go back and find the optimal output combination corresponding to the specific utility possibility line that includes this point; according to this output combination, one can also determine the optimal assignment of the product and finally realize the best combination of economic efficiency and fair assignment.

2.3

Resources, the Environment, and Sustainable Development

2.3.1

Resources, the Environment, and Economic Systems

2.3.1.1

Traditional Economic System

The traditional economic system regards the entire economic society as a system. In this system, the environment and natural resources are not taken into account. In the traditional economic system model, there are two basic actors: manufacturers and households. These two actors are linked through product markets and factor markets. This is the more familiar economic system model in microeconomics (see Fig. 2.25). In this economic system, on the one hand, manufacturers produce products and services, sell them to households through the product market, and households pay money to manufacturers. On the other hand, households sell production factors such as land, labor, and capital to manufacturers in the factor market, and manufacturers pay money to households. That is, the entire economic system is connected by the opposite flows of products and money.

78

X. Chen and G. Li Money Factors of production

Manufacturers

Households Products Money

Fig. 2.25 Traditional economic system

Fig. 2.26 Economic and environmental large-scale system

2.3.1.2

Economic-Environmental Large-Scale System

Because economic activity occurs within the Earth and its atmosphere, this system is called the “natural environment” or is referred to as the “resource environment.” Therefore, modern resource and environmental economics always take into account the subsystem of the resource environment when considering the traditional economic system. In fact, there is a complex interdependence between the resource environment subsystem and the economic subsystem. Figure 2.26 simply represents the interdependent relationship between the economy and the environment. Economic activities are in the environment, including production and consumption, both of which come from environmental services. Not all production activities are consumptive, and the output of some production activities is added to the artificial, renewable capital stock, thereby playing a role together with labor in production activities. Waste generated in the production process also goes into the environment. Consumption is the same. Consumption is also the process of direct utilization of

2 Basic Principles of Resource Economics

79

comfort services that flow from the environment to the individual, without the intermediate process of production activities.

Services Provided by the Environment In general, the environment provides four service functions: resource basis E1, waste “sedimentation” E2, comfort base E3, and life support functions E4 (Fig. 2.26). In an economic-environmental large-scale system, the resource basis is the top major service provided by natural resources. There are two main forms of natural resources used in production. Natural resources can be divided into renewable resources and nonrenewable resources according to the related connection between the use of current resources and the capabilities that can be provided in the future. Simply said, renewable resources mainly refer to biomes (fauna and flora), and nonrenewable resources are minerals, including fossil fuels. For the former, the stock at a certain time can be supplemented by natural reproduction. If, within a certain period, the utilization of resources is lower than natural growth, the stock will increase. If utilization or total harvest is synchronized with natural growth, then resources can be utilized limitlessly. This utilization rate is often called “sustainable yield.” A utilization rate greater than the sustainable yield means a reduction in stock. Natural reproduction cannot be carried out for nonrenewable resources, except in geological time. Therefore, in terms of nonrenewable resources, the more that is used now means there will be less used in the future. Other services provided by the environment also include waste “sedimentation,” comfort, life support, and so on. Because the interrelationship between economic activities and the environment is very common and complex, the interactions between the four types of environmental services cause an increase in complexity. An estuary/inner bay is used as an example for explanation, as follows. Assume that there is an estuary/inner bay. It provides a resource basis for local economic development. Fishery activities can be carried out in it, and it can also be a place for waste “sedimentation.” Urban wastewater has to be discharged into it, and it is also utilized for leisure purposes like swimming and boating; it can also be a resource for comfort services. If it is not used for commercial exploitation, as a breeding place for marine species, it has life support functions, but commercial exploitation plays an important role in the marine ecosystem. When the wastewater discharge rate is equal to or less than the assimilation capacity of the estuary, all four of these functions exist simultaneously. However, if the wastewater discharge rate is greater than the assimilation capacity of the estuary, not only would pollution appear, but other functions of the estuary will also be weakened. For example, pollution will hinder the reproduction capacity of fishery resources in commercial exploitation and may lead to the closure of fishing grounds. Because pollution endangers public health, it will reduce the ability of the estuary to support recreational activities. For example, pollution prevents swimming; in addition, pollution may also affect noncommercial marine species, leading to the extinction of species involved in functions of the marine ecosystem.

80

X. Chen and G. Li

Substitution of Environmental Services The natural environment provides four types of basic service functions, and these service functions can be substituted. For example, there are two ways to recycle to substitute environmental functions: first, recycling can reduce demand for the waste sedimentation function; second, as long as the recycled materials can substitute for the mining of resources in the environment, it can reduce the demand on resourcebased functions. The estuary/inner bay can still be used as an example; multistage treatment is possible before wastewater is discharged into the river. According to the degree of treatment, discharges that are able to satisfy the requirements for the assimilation capacity of the estuary can reduce the level of treatment for wastewater. Capital in the form of a wastewater treatment plant can be a substitute for the functions of the natural environment in waste sedimentation, and its degree depends on the treatment level of the wastewater treatment plant. In addition, examples in the field of fishery resource protection show that capital is able to substitute for resource-based functions. For example, placing artificial reefs on the ocean floor can artificially improve the habitat of fish and increase fish productivity; therefore, this is a typical capital substitution for resource basis. In life support functions, many scientists believe that possible substitutions are very limited. However, from a technical perspective, this situation is unclear. Man-made environments that are able to support human life have been created, such as space stations and related equipment that have enabled people to live outside the biosphere. Although time is limited, if it is not too expensive, it is completely possible for humans to build an environment to sustain human existence on the moon and provide certain types of suitable energy sources. However, due to the lack of natural life support functions on the moon, the maintainable population size is bound to be very small.

2.3.2

Resource Scarcity

2.3.2.1

The Concept of Resource Scarcity and its Relationship with Economic Development

The Concept of Resource Scarcity Scarcity is the premise and starting point of resource economics, but there is no strict definition of resource scarcity that is acceptable to everyone. K. W. Easter and J. J. Waelti noted the following: “If a competitive utilization situation for a certain resource exists, then it can be said that the resource is scarce. If a certain resource is so abundant that no one excludes others from utilizing it, no scarcity problem exists.” A. C. Fisher pointed out that scarcity is the cost that must be paid for obtaining the resource, and the measure of the indirect and direct costs of acquiring a unit of the resource is the indicator for the degree of resource scarcity.

2 Basic Principles of Resource Economics

81

Although the perspectives of various formulations differ, it is generally believed that scarcity refers to an economic characteristic of resources. Resource scarcity is proposed along with the natural limitedness of resources. The limitedness of resources is a natural attribute that nature has granted resource elements in terms of quantity and quality; however, the concept of resource scarcity in terms of economics is relative to infinitely diverse demands from the perspective in terms of the supply and demand relationship of resources and economic and technological factors. Therefore, the limitedness and scarcity of resources, strictly speaking, are not the same concepts. Therefore, some economists believe that in a competitive market, any commodity with a price greater than zero is scarce. That is, no matter the resource, there is a scarcity problem, its supply is not limitless, and it cannot be obtained anytime, anywhere. Therefore, we can roughly define resource scarcity as a state caused by the natural limitedness of resources that manifests economically as resources that can be obtained and used only through competition, and its main sign is the existence of a resource market price. Viewed from this definition, scarcity is primarily an economic concept. A concept similar to resource scarcity is resource shortage. The two are related but are not one concept. Resource scarcity is the general intrinsic nature of resources in the economy and society, that is, any resource that cannot be possessed and used by people limitlessly due to the quantitative limitedness of the resource; it is a basic feature that causes the existence and activity of resource values, and it is directed in terms of all resources. Resource shortage is an individual trait of resources; it is a phenomenon of relative short supply in the market in terms of being relative to other resources, which is caused by the unbalanced allocation of resources in different sectors or regions and reflects the degree of supply and the supply and demand situation of a certain resource in the market. There is a relation between resource scarcity and resource shortage. For example, the shortage of a certain resource may cause its exploitation cost to rise, increasing resource scarcity. However, changes in the two will not always be consistent. For resources with scarcity, a shortage phenomenon cannot appear, or the shortage phenomenon can be mitigated through improvements or changes in social and economic conditions; for resources with a small scarcity value, a shortage or aggravated shortage phenomenon will also be caused by ineffective exploitation and utilization that make its degree of availability tend to be tight. Therefore, resource shortage reflects the individual trait of certain resources in a certain period. Resource scarcity also has a time attribute. A long time ago, in terms of human survival and development, it was believed that many resources, such as forests, water, and air, were abundant or not scarce, especially water and air, which could be obtained and utilized additionally without any cost. With the increase in the population and the acceleration of resource exploitation, people have changed their understanding of resources. A large amount of deforestation has made forests become a scarce resource. Water is also no longer a free item. Moreover, the pollution and destruction of environmental elements such as the atmosphere make people also regard clean air and a beautiful environment as important resources— environmental resources. Therefore, resource scarcity is a dynamic concept.

82

X. Chen and G. Li

Resource Scarcity and Economic Development The limitedness of resources owned by a country or region in terms of quantity and quality has caused scarcity in terms of the economy; coupled with the territoriality of distribution, resource constraints are formed, which will thereby generate a great effect on economic development, limiting or stipulating all aspects of economic development and making the economic development of a country or region have obvious features. The effect of resource scarcity on economic development mainly manifests in the following two ways: 1. Resource scarcity restricts the scale and growth rate of economic development. The constraints on the total amount of resources and their degree determine the scale and growth rate of long-term economic development. Due to the increased degree of scarcity in certain individual resources, the resulting resource constraints will inhibit economic development because these individual resources often become a “bottleneck” of economic development. For example, Africa’s scarce water resources have always been an important obstacle of agricultural production and a reason for slow economic development in this region. Viewed from a long-term perspective, with the adjustment of the economic structure and resource alternatives, the constraints on the economy by the scarcity of individual resources will be alleviated or relieved, and, thus, will not become determinants that restrict economic development and growth rate. 2. The different degrees of scarcity of various resources, or resource constraints formed by structural characteristics or imbalances, generate an effect on the development of industry and the formation of the industrial structure. If a country or region has a complete variety and uniform amount of resources, then the country or region may establish an industrial structure with a comparatively complete industrial sector and coordinated development of various industries; conversely, if certain resources are lacking, a comparatively complete industrial structure and system are very difficult to form. In this sense, resource scarcity restricts the choice in economic development mode for a country or region, and certain resource scarcity situations determine a certain economic development mode. However, the changes occurring in the scope, direction, and degree of influence that resource scarcity has on economic development have changed due to the advancement of science and technology. Viewed from the long run, people always overcome resource scarcity through technological advances (discover new resources and implement resource substitution) and development strategy choices, thereby giving impetus to the economy to continuously develop.

2.3.2.2

Measure of Resource Scarcity

Resource scarcity is a relatively dynamic concept, and measuring the degree of resource scarcity and its changing trend is an important issue in resource allocation.

2 Basic Principles of Resource Economics

83

Economists have proposed many research methods and measurement indicators. Generally, it is carried out through physical measurements and economic measurements.

Physical Measure of Resource Scarcity The physical measure of resource scarcity is usually carried out through reserves analysis. Generally, the current reserves of a certain resource are first estimated, and the years that this resource is available for use is calculated according to current and future usage levels, by which means the degree of resource scarcity is measured. It can be seen from the composition of total resources that resources include both confirmed (known) and mining economy and technologically feasible parts, as well as undiscovered and current mining economy and technologically infeasible parts. Moreover, the reserves we stated refer to geologically confirmed resources that can be mined under current expense levels and technological conditions. As for the analysis of renewable resources, especially biological resources, their reserves, and the ratio of reserves usage, not only rest with the discovered resource reserves and the economic and technological feasibility of exploitation and utilization but also rest with the regeneration conditions and regeneration characteristics of the resources themselves, and it is more complicated than the analysis of nonrenewable resources.

Economic Measure of Resource Scarcity The economic measure of resource scarcity occupies a more important position in resource economics. The so-called economic measure of resource scarcity draws support from a set of economic indicators to inspect the relative scarcity situation of resources. These indicators mainly involve the cost of resource acquisition, including resource price, mining costs, rent, and so on. Resource Product Price After studying the price change situation for many resources, Fisher found that the prices of many exhaustible resources generally follow a “U”-shaped orbital change; that is, due to technological backwardness at the beginning, cost and price are comparatively high at the start. Later, due to technological progress in prospecting and exploitation and utilization, the available amount of resources increases, which also reduces the cost of exploitation and utilization, and the prices tend to fall. However, as the discovery of new resources tends to become difficult over time, costs are difficult to reduce, and prices tend to rise. Therefore, prices can, to some extent, measure the resource scarcity situation now and forecast it for the future. For a homogeneous limited resource stock with a scarcity situation that is certain to grow continuously, the relative changes that occur

84

X. Chen and G. Li

in price caused by this scarce growth are not due to differences in the quality of the resource itself (because it is homogeneous) but due to the future available amount of the resource continuously decreasing. If the resource market functions normally, the price of resource products will continue to rise. In real life, as an individual decision on resource exploitation and utilization, for a resource that is obviously about to be depleted, people’s evaluation of the value of the resource will naturally cause them to value its future value caused by the reduction in the stock. From this, the motivation for possessing this kind of in situ resource stock is generated and is reflected in terms of the economy by increased interest rates and heavier discounting; thus, the price of such a resource will have a continuously increasing trend. There are two types of prices that reflect the degree of resource scarcity. One type is the price of the resource product or the actual price, and the other type is the price of the in situ resource, which is also known as rent or mining royalty. The latter will be discussed separately as another indicator of resource scarcity. Moreover, the resource product price, that is, the total cost paid for acquiring a unit of a resource, can be inspected in two ways: the first is the current price of the resource product, that is, the price of the real resource product market, and the second is the relative price of the resource product according to the Ricardian model, which reflects the scarcity situation in terms of resources relative to labor and capital. The latter is only theoretical because it is impossible to determine the role of labor productivity improvement factors, and the relative price of this resource is very difficult to measure in reality. If the prices of resource products increase for a long time, then resource scarcity is growing. Cook’s study in 1979 indicated that since 1900, the price of mercury in the United States has presented exponential growth at a rate of nearly 3.5% and, obviously, that mercury is a resource that is trending toward depletion. Although prices have sometimes decreased during this period as a result of technological progress or economies of scale, in terms of this type of resource that is about to be depleted and for which no substitute resource has emerged, the limited rate of technological progress cannot effectively prevent a long-term rising trend in price. Moreover, in real economic life, not all resource product prices have an increasing trend, thereby reflecting the aggravation or relief in the degree of scarcity of various resources. As another example, due to the decline in resources, the Yangtze River saury (Coilia macrognathos Bleeker) no longer has a fishing season, and its unit price per jin rose to more than 7000 CNY at its height. Resource Exploitation Expenses or Exploitation Costs Because better resources are mined earlier, the cost of exploiting lower grade resources will rise accordingly. The trend of this type of exploitation cost, i.e., increasing with the increase in the cumulative resource exploitation dose, also reflects the degree of scarcity in this type of resource. A higher exploitation cost indicates a scarcer resource. For example, good land and medium land have been used for agricultural production. To expand the scale of agricultural production and satisfy people’s demand for agricultural products, inferior land must be exploited

2 Basic Principles of Resource Economics

85

and utilized, but the cost spent on the exploitation of inferior land is clearly higher than that for good land and medium land. The increase in land exploitation costs reflects the increasing reduction and scarcity of land resources. The level of mineral resource exploitation costs is more able to reflect the degree of scarcity in this type of resource. The level of resource exploitation costs is often affected by technological progress and the effect of scale operation; therefore, more comprehensive and more in-depth analysis has to be conducted to utilize exploitation costs as a quality indicator of resource scarcity. Rent Rent in resource economics refers to the difference between the current price of the resource product and the marginal mining expense; it is also referred to as the in situ resource price, mining royalty, or user cost. Because rent is the difference between the current price of the resource product and the marginal mining cost, it is actually the shadow price of the in situ resource or stock resource; therefore, this indicator can become a more appropriate indicator for measuring resource scarcity. However, the problem is that because the marginal mining cost is difficult to observe and the imperfect market and government regulation and control will distort the resource price, it is very difficult for the rent or mining royalty indicator to accurately reflect the resource scarcity situation. However, in resource economics, the expenses of newly discovered resources (ore deposits) are often utilized in the indirect estimation of the resource rent and used to measure the degree of resource scarcity. In an analysis of the actual annual prospecting costs of petroleum and natural gas in the United States from 1946 to 1971 (all were broken into per barrel of oil), the prospecting cost increased from 0.568 USD/barrel at the start to 1.38 USD/barrel. Therefore, resource prospecting cost is a more effective economic indicator for measuring resource scarcity.

2.3.2.3

Approaches for Relieving Resource Scarcity

The development of human society and economy finds new resources continuously, thereby solving resource scarcity issues and, at the same time, also causing new resources to be scarce due to the rapid development of society and the economy. To realize the sustainable use of resources to realize sustainable development, we must summarize the historical experience of human social and economic development and explore approaches for relieving resource scarcity and alleviating constraints on economic development.

The Role of Technological Progress in Relieving Resource Scarcity Viewed from the history of human social and economic development, any technological change process can be regarded to a large extent as being driven by resource

86

X. Chen and G. Li

scarcity. American economist Nathan Rosenberg once pointed out: “Technological change is a successful answer to a special question raised under a special resource backdrop.” Furthermore, increasingly more studies have confirmed that the price of resources affects the direction of technological change. Conversely, technological progress is also able to mitigate resource scarcity in various ways, thereby giving impetus to economic development. Technological Progress Can Discover New Resource Reserves Discovering new reserves is undoubtedly an important approach for relieving resource scarcity and giving impetus to economic and social development. This point can be analyzed by using petroleum as an example. In 1874, geologists in Philadelphia in the United States had once predicted that the US petroleum reserves could only satisfy the needs of the United States for 4 years. In 1920, a United States Geological Survey report pointed out that the amount of minable petroleum would not exceed seven billion barrels and would eventually be depleted in 1934. By 1934, the confirmed petroleum reserves had increased to 12 billion barrels, and by the mid-1960s, 3.5 billion barrels were produced each year. The world’s petroleum reserves also increased from 9.48 billion tons in 1947 to 91.38 billion tons in 1972, and the depletion period also increased from 22 to 35 years. Practice has proven that the increase in petroleum reserves is to a great extent the result of technological progress, especially technological progress in petroleum prospecting. For all renewable and nonrenewable resources, technological progress has greatly increased the efficiency of new reserve discovery. These technologies include aerial photography technology, geological survey technology, hydrological survey technology, soil and vegetation survey technology, and so on. Technological Progress Can Drive Improvement in the Rate of Resource Utilization The most significant role of technological progress in relieving resource scarcity is to promote the utilization of low-grade resources, the repeated (recycled) utilization of resources, and the comprehensive utilization of the symbiotic components of resources, thereby greatly improving the utilization rate of resources. Technological progress has made increasingly more low-grade resources be exploited and utilized that originally seemed to be economically infeasible to mine and utilize, enlarging the reserves of resources. Because improvement in resource utilization technology (such as reuse technology) and industrial and agricultural production technology has reduced the resource consumption per unit of product output (output value) and improved the rate of resource utilization, the reserves have enlarged, relatively. For example, the same pound of coal that could only generate one degree of electricity at the beginning of this century can now generate 10 degrees of electricity, and coal reserves therefore have relatively enlarged nine-fold. Similarly, through improvements in multiple cropping technology and biotechnology, the yield per unit area for agricultural products has improved, land has relatively been conserved, and the contradiction between people and land has been relieved. In addition, the reuse of

2 Basic Principles of Resource Economics

87

resources, especially progress in waste resource utilization technology, has enabled many waste commodities such as waste paper, metal products, glass, and so on, to be recycled and reused, which has greatly alleviated the demand for the resources on which the production of these commodities depend and relieved the scarcity of these resources. Technological Progress Promotes the Substitution of Scarce Resources in the Production Process Due to the versatility of resources, a phenomenon of mutual substitution exists between resources. Moreover, technological change has impelled the use of less scarce resources to substitute for scarcer resources in the production process. In the twentieth century, an obvious feature of resource substitution in the production process was that renewable resources were continuously substituted with nonrenewable resources. The key factor that caused this kind of reverse substitution is the relative price ratio. For example, historically, petroleum was used as a substitute for whale oil; plastics, copper, and iron were used as substitutes for wood; coal was used as a substitute for firewood, and so on, which all accompanied the discovery of ore deposits and resulted in causing the price of mineral products to be vastly lower than the price of renewable resource products. After World War II, with the rapid change in mining technology, the use of oil pipelines, and the application of new technologies in the field of organic chemistry, the prices of many depletable resource products decreased greatly. Chemical fiber clothing was increasingly substituted for cotton fabrics, fuel power was substituted for animal power in operations, and many natural resources were substituted with petroleum, natural gas, coal, and metal and nonmetal minerals. Moreover, between nonrenewable resource products, the substitution process was also obvious. In a scarce resource environment, effective production substitution that is in line with the direction of human development should involve a transition from nonrenewable resources to renewable resources and from limited resources to constant (unlimited) resources; for example, substitute scarce resources with capital-labor and substitute limited fossil energy (petroleum, coal, natural gas, etc.) with solar energy, tidal energy, geothermal energy, wind energy, and nuclear fusion. In fact, technological progress since the 1980s has already shown good momentum. Technological Progress Can Give the Impetus to the Enlargement of Resource Utilization and Production Scale and Realize Economies of Scale in Resource Utilization The so-called scale economy is a type of nonequilibrium state generated by technological change. In part, because of technological changes induced by changes in element prices, a more economical effect manifests for larger business units. It is mainly believed that because technological progress has changed the proportions of resource combinations, the product and average costs decrease. Realizing economies of scale is a gradual process, but people can always grasp the stage features of

88

X. Chen and G. Li

technological progress to find the most appropriate level of scale operation. The decrease in average cost and the achievement of economies of scale mean that the production of products at the same scale will consume less resources, thereby helping to relieve the resource scarcity situation.

Other Approaches for Relieving Resource Scarcity In addition to technological progress, the relief of local or regional resource scarcity can also be realized by approaches such as increasing the degree of economic openness, improving transportation conditions, and formulating effective price policies. Increasing the Degree of Economic Openness Increasing the degree of economic openness of a region or a country, especially by utilizing bilateral or multilateral trade to enable all countries or regions to unleash their own resource advantages, overcomes the constraints of scarce resources on economic development. For countries or regions that lack resources and need imports, a very effective approach for relieving resource scarcity and advancing economic development is by opening up the economy and carrying out trade, whereas countries with a closed-door policy will instead only increase the degree of resource scarcity and limit economic growth and development, which has been proven by numerous historical facts. Japan, for example, has a land area of more than 377,000 km2, but it has a population of 120 million. Resource scarcity is the number one obstacle related to Japan’s economy. However, after World War II, the “absorptive strategy” adopted by Japan greatly accelerated the degree of economic openness. During the period of economic growth for Japan between 1950 and 1975, it spent a total of 5.8 billion USD to introduce technology and import resources, making Japan the world’s largest manufacturing and export base today for daily necessities industries such as automobiles, ships, and home appliances. Japan imports raw material resources mainly from Asian, African, and Latin American countries. The prices of these raw material resources are low, which is very favorable for their export. For example, between 1951 and 1972, the prices of crude oil and natural rubber imported by Japan decreased by 34% and 110%, respectively, but the exported manufactured goods had an average price increase of 20%. It is exactly this type of realization in the substitution of scarce resources by labor capital and technology through the opening up of the economy and development of trade that gave impetus to the soaring of Japan’s economy. Improve Transportation Conditions Improvement of transportation conditions is an important condition for expanding resource reserves and realizing trade. First, traffic construction and improvements in transportation conditions have made the transportation of large amounts of resources

2 Basic Principles of Resource Economics

89

and the exploitation and utilization of resources in remote areas become possible. For example, the Tanzania-Zambia Railway (TAZARA Railway), which China helped to construct, enables copper deposits in Zambia to be transported to the shores of the Indian Ocean, and improvements in oil pipeline construction technology allowed utilization of petroleum from Alaskan coastal areas. The natural gas pipeline that China is planning to construct from the west to the east is for slowing the energy scarcity situation in the east. Historically, it is reliant on the developed maritime industry that has made many backward countries or regions the raw material supply bases for developed countries in Europe and America for hundreds of years; until today, many countries still rely on foreign raw material bases to maintain their economic growth. Second, improvements in transportation conditions have also reduced the cost of prospecting activities. Because the degree by which people are close to resources has improved, which has made many difficult and highcost prospecting activities become possible, the discovery of more obvious resource reserves will undoubtedly be promoted. In addition, improvements in traffic conditions will enlarge the area of human settlement and activities and will undoubtedly generate a relative balance regionally in the relationship between people and resources and relieve the resource scarcity situation in regions or countries with many people but little land.

Effective Institutional Arrangements and Price Policies Any resource allocation activity is carried out under established institutional arrangements and economic policies. The level of resource allocation efficiency is undoubtedly the logical result of these institutional and economic policies. Therefore, another important approach for improving resource utilization efficiency and relieving resource scarcity is by reforming or adjusting related systems and formulating effective economic policies. Among them, a resource property rights system, the organizational systems of enterprises, and resource price policies play very important roles in resource utilization efficiency. Vague and ineffective property rights relationships allow resources to have a certain degree of common sharing, making such resources often unable to be effectively exploited and be wasted in large quantities, which causes even more numerous renewable resources to lose their ability to regenerate and thus become extinct. Backward enterprise organization lacks economies of scale and restricts improvement in the rate of resource utilization. For example, in the 1980s to 1990s, the annual average for China’s coal resource recovery rate was approximately 30%, and most township and village enterprises had a recovery rate below 20%. These undoubtedly increased the degree of resource scarcity. This also indicates that people’s speed of exploitation or intensity of utilization of resources can be restricted and that economies of scale in resource utilization can be realized through institutional arrangements, such as the establishment of effective resource property rights relationships and modern enterprise organizational systems, thereby relieving resource depletion and further scarcity caused by this.

90

X. Chen and G. Li

2.3.3

Environmental Issues and their Causes

2.3.3.1

The Concepts and Features of an Environment and the Environmental System

The Concept of Environment From an understanding of the meaning of the word, “environment” broadly refers to the space around a central item (or also known as the subject) and the things that exist in the space. In fact, the environment is a very complex concept, and to define it accurately and comprehensively is very difficult. Thus far, the definitions related to the environment can be divided into three kinds, including the “human”-centered environmental view, the “life”-centered environmental view, and the “practicality”-centered environmental view. 1. The “human”-centered view: This viewpoint holds that the central item of “environment” is people; the environment we are studying is the environment in which humans live, and it includes two aspects—the natural environment and the social environment. The natural environment existed objectively before the emergence of human beings, that is, the Earth’s atmosphere, hydrosphere, lithosphere, biosphere, and so on; the social environment is the result of human development, including material production and consumption systems and cultural systems created by humans. The “human”-centered view is a primary environmental view in the world today. However, historically, the “human”-centered view led to the “human supremacy view”; that is, human beings are the masters of all things on Earth. Human beings can arbitrarily dispose of and eliminate other species in the environment according to their own values, and exploit, utilize, and “transform” the environment regardless of the consequences thus causing various environmental disasters and making humans pay heavy costs. 2. The “life”-centered view: This viewpoint holds that the central item of “environment” is the biological world that includes human beings and that there is no clear dividing line between the environment and its central item. What we are studying is the environment in which living things live, and it includes abiotic environments, biomes, and human social environments. “Environment” is a whole composed of various factors that affect the growth, reproduction, and development of living things. Moreover, there is a relationship of mutual connection, mutual influence, and mutual restriction between humans and various species in the biological world, which together compose a whole and relative central item. In essence, this is an ecological viewpoint. While assessing the effect of human actions on their own living conditions, full consideration should be given to the effect on living things, and it should be even more so especially when factors that never existed in nature are imposed on the environment.

2 Basic Principles of Resource Economics

91

3. The “practicality”-centered environmental view: This viewpoint regards “environment” as a complex of physical-chemical-biological, socioeconomic, cultural, esthetic, and other various elements. For example, the Environmental Protection Law of the People’s Republic of China stipulates the following: “Environment as mentioned in this Law refers to the atmosphere, water, land, mineral resources, forests, grasslands, wildlife, wild plants, aquatic plants and animals, famous historic sites, scenic spots for sightseeing, hot springs, health resorts, nature conservation areas, residential districts, etc.” Starting from the needs of actual work, this is a clear list of the elements or objects that should be given protection in the environment; it is the stipulations made for the legally applicable objects and scope of the term “environment” in order to ensure accurate implementation of the law. With the global implementation of human sustainable development strategies, the biology-centered environmental view has been gradually valued by people. Moreover, in the environmental legislation and environmental management documents of various countries and international organizations around the world, most are using the practical environmental view in making specific provisions for the connotations of the environment according to different purposes and objects.

The Environmental System and its Features and Roles The Environmental System The environment is a very large, complex, and changeable open system. It is a whole composed of two large interconnected and interacting systems: the natural environment and the human social and economic environment. The “environment” has all the characteristics, functions, and behaviors of a system; therefore, it can be referred to as the environmental system. The environment is composed of many environmental elements. Environmental elements are the subsystems that constitute the environmental system. They are the basic components that are interconnected and relatively independent in the environment. Each environmental element is also composed of many subelements. The environmental system is the sum of various environmental elements and their interrelationships. Environmental elements can be divided into abiotic and biotic. Abiotic elements are also referred to as physical elements or physical-chemical elements, such as the atmosphere, bodies of water, soil, rocks, urban buildings and infrastructure, and so on; biotic elements refer to lifeforms, such as animals, plants, microorganisms, and so on. Human society is a kind of basic and specific environmental element, and it can also be regarded as a subelement of biotic elements. Various subelements of biotic elements, various abiotic elements, and biotic and abiotic elements act on each other and are closely connected to each other. Therefore, when studying a certain element, it must relate to other elements, which should be comprehensively considered.

92

X. Chen and G. Li

The difference between the two concepts of environmental system and ecological system is that the former regards the environment as a whole that is relatively independent of people; however, the latter regards living things and the environment as a whole and puts particular emphasis on reflecting the interrelationships between biological populations and between living things and the environment. The environmental system has existed since the formation of Earth, and the ecosystem is a system that formed after the emergence of living things. The scope of an environmental system can be global, and it can also be local. For example, a city, region, and river can all be independent environmental systems. An environmental system can also be formed by the interweaving of several elements, such as the air in a water-soil system, the water-soil-living being system, the urban wastewater-soil-wastewater irrigation system for crops, and so on.

Features of the Environmental System The environmental system is complex, diverse, and ever-changing. Although our understanding of the environmental system is still insufficient after the efforts of many generations of scientists, the common features that were explored are still the basis for our research and understanding of the environment, as well as the basis for solving environmental problems. The environmental system has the following features: 1. Integrity. The environment is a unified whole, and each element that composes the environment has its relatively independent integrity, and there is also connectivity, dependency, and conditionality among the elements. When researching and solving large and small environmental problems, we must start from the concept of integrity and fully consider the relationships among various subsystems and their interactions. 2. Regional differences. Regional differences in the environment refer to the different overall characteristics that environmental systems in different geographical locations and with areas of different sizes have on Earth. One must grasp the natural, social, and economic characteristics of the region to study and solve various environmental problems. 3. Variability and stability. The environmental system is under the joint action of natural processes and human social behavior; therefore, the internal structure and external state of the environment continuously change throughout. This type of change is both definite and has randomness, reflecting changes in the state parameters of the system and changes in various factors (interferences) put into the system. This type of change may be beneficial, and it may also be harmful. On the other hand, the environmental system also has a certain regulating ability and is able to compensate and relieve the actions or influences coming from within or from the outside world within a certain limit to keep the environment in a relatively stable state. However, when the spontaneous process of nature and the interference of human behavior far exceed the system’s regulating ability, significant change will occur to the state and even the structure of the system.

2 Basic Principles of Resource Economics

93

4. Resourcefulness and its limitations. The environmental system is the headspring of energy and materials needed for the survival and development of humans and the biological world. The environmental system is the sum of environmental resources. Although environmental resources are very rich and diverse, they are limited. For example, the amount of freshwater resources in the environmental system is limited, and the self-purification capacity of water resources for pollutants is also limited. Environmental systems in different structures and states have different functions that can be utilized by humans and the biological world. For example, the plant species and quantities that can be planted and harvested on land with similar soil quality located in arid areas and rainy areas are different, and rivers with the same flow but different riverbed conditions also have different pollutant-holding capacities.

Roles of the Environment As an example, the fishery environment mainly has three major roles: 1. Provide various natural aquatic biological resources indispensable to human activities—The fishery environment is the material basis for humans engaged in fishery production and fishery activities as well as the basic condition for the survival of various living things. The environment as a whole and each of its component elements are the basis of human survival and development. It can be said that various fishery economic activities started with these initial products as raw materials. Moreover, the amount of aquatic biological resources also determines the scale of fishery economic activities. 2. Carry out absorption and assimilation of waste and waste energy generated by human economic activities (that is, the self-purification function of the environment or environmental capacity)—When economic activities provide people with needed products, there will also be byproducts. Limited by economic conditions and technological conditions, these byproducts cannot be utilized in a short while and are discharged into the fishery environment, becoming waste. The process of absorbing, diluting, and converting these wastes through various sorts and varieties of physical, chemical, biochemical, and biological reactions in the fishery environment is referred to as the self-purification action of the fishery environment. If the fishery environment does not have such a self-purification function, then it will be impossible for humans to imagine the quality and condition of the bodies of water associated with fisheries. 3. Provide spiritual enjoyment in a comfortable environment. The fishery environment is not only able to provide material resources such as fish, shrimp, crab, and shellfish for economic activities, but it is also able to satisfy people’s requirements for comfort, such as leisure fishery, coastal tourism, and so on. Clean water resources are essential elements of industrial and agricultural production, and they are also a basic requirement of healthy and happy lives for people. With the

94

X. Chen and G. Li

economic development and improvement in people’s living standards, people’s requirements for environmental comfort will become higher and higher.

2.3.3.2

Classification of Environmental Problems and their Essence

Classification of Environmental Problems Since the Industrial Revolution, the fishery resources on which we humans rely have been exploited and utilized in an accelerated manner and even overexploited. Although modern science and technology are changing rapidly, humans have yet to find approaches and methods regarding effectively managing their own living environment on Earth. As human society steps into the twenty-first century, many traditional, high-economic value fishery resources have suffered severe damage, biodiversity has been lost in large quantities, and the ecological environment has suffered severe damage. Several major environmental issues of international concern, that is, global warming, the depletion of the ozone layer, and the sharp decline in biodiversity, as well as the reduction in arable land, soil degradation, water and soil loss, desertification, and so on, have become global environmental problems across regions and across national borders, and humans can no longer escape the pressure and challenges brought by the environment. Viewed from the cause of the problems, environmental problems can be divided into two categories: primary environmental problems and secondary environmental problems. The so-called primary environmental problem is also referred to as the first environmental problem; it is an environmental problem caused by factors such as earthquakes, tsunamis, landslides, and volcanic eruptions due to the inherent imbalance in nature. This type of environmental problem is beyond human control, and its impact also cannot be fully predicted by humans. Because human social production activities will have adverse effects on the natural environment, for example, the wastewater, waste gas, and solid waste generated in the course of human production, living will cause changes in the environmental material composition, irrational mining of mineral resources and large-scale engineering construction will cause land subsidence and induce earthquakes, the deforestation of forests and overgrazing of grasslands will cause water and soil loss and desertification, improper agricultural irrigation will cause land degradation, and overfishing will lead to a decline in fishery resources, these phenomena are referred to as the second class of environmental problems or secondary environmental problems. This class of environmental problems is the main topic of current research in environmental science. For the sake of research convenience, the secondary environmental problems can be divided into two types. One type is damage to the natural environment. Environmental damage is an environmental phenomenon in which one or several elements are inappropriately exploited and utilized by humans, making them decrease in quantity and decline in quality, thereby damaging or reducing their environmental effectiveness so that the ecological balance is damaged and certain resources are

2 Basic Principles of Resource Economics

95

depleted, which then endangers human survival and development, for example, soil and water loss, soil desertification, ecological damage and imbalance, overfishing of fishery resources, and so on. The other type is environmental pollution. Because materials and energy that humans discharge to the environment are in excess of the self-purification capacity of the environment, a phenomenon results in which changes occur to the physical, chemical, and biological nature of the environment that are not favorable to the normal survival and development of humans or other living things. If we say that damage to the natural environment is often mainly caused by humans’ excessive request of materials and energy from the environment, in excess of the amount that the environment can provide, then environmental pollution is generated by humans’ discharge of materials and energy to the environment in excess of the environmental capacity. These two situations are interconnected and interact. Severe environmental pollution can result in the death of a large number of living organisms and damage the ecological balance, causing damage to the natural environment, and that damage to the natural environment then reduces the self-purification capacity of the environment, exacerbating the degree of pollution.

The Essence of Environmental Problems The essence of environmental problems is that the speed at which human economic activities request resources exceeds the regeneration rate of the resources themselves and their substitutes, and the amount of waste discharged to the environment exceeds the self-purification capacity of the environment. This is because (1) the environmental capacity is limited and (2) the replenishment, regeneration, and proliferation of natural resources require time. Once the limit is exceeded, it is difficult to recover; sometimes, it is even irreversible. Marine fishery resources also have their sustainable yields, and overfishing will exhaust fishery resources.

2.3.3.3

Causes of Environmental and Resource Problems

Economics pays attention to the reasons behind environmental deterioration and the generation of resource problems. Economists believe that environmental deterioration and resource problems are based on certain reasons in the economic aspects of society and are due to shortcomings in people’s behavior and institutional arrangements. Market and government intervention are the two major means of resource allocation. However, market failures and government failures have become the foremost economic causes of environmental deterioration and resource problems.

96

X. Chen and G. Li

Market Mechanisms and Market Failures The Concept and Types of Market Failure From an economic point of view, a normally working market is usually an effective mechanism for allocating resources between different uses and at different times. However, the normal work of the market requires several conditions: clear property rights of all resources; all scarce resources must enter the market and have their prices be determined by supply and demand; perfect competition; no obvious external effect of human behavior; few public goods; and short-term behavior, uncertainty, and irreversible decisions do not exist. If these conditions cannot be satisfied, the market cannot be used to effectively allocate resources. Most environmental deterioration and inefficient resource use are due to unsound market mechanisms or distorted market mechanisms or are caused by reasons such as a fundamentally nonexistent market. These most serious market failures are summarized in terms of resource use and management as follows: unsafe or nonexistent resource property rights; no market, thin market, and insufficient market competition; external effects; public goods; transaction costs; and uncertainty and short-term planning. Effect of Market Failure on Resources and the Environment Unclear Property Rights Mainstream economics holds that the basic condition for the normal role of the market mechanism is clearly defined, specific, safe, transferable, and enforceable property rights covering all resources, products, and services. Property rights are the precondition for the effective utilization, exchange, preservation, and management of resources and for investments in resources. Generally, in a typical market economy, property rights must be clearly defined. Otherwise, legal disputes and uncertainty in ownership will be generated thus diminishing people’s enthusiasm for resource investment, preservation, and management. For example, if the property rights of rural land and forests are not clear, it may cause farmers to use resources excessively in the short term. If the property rights of fishery resources are unclear, this objectively leads to having no one manage fishery resources when they are overused, or even if there is someone to manage them (such as fishery authorities), they cannot be effectively managed. The most typical example is that after the summer fishing moratorium, fishermen increase the horsepower of fishing vessels, increase fishing capacity, and focus on fishing thus causing a decrease in fishery resources. Property rights must be specific or exclusive, that is, if a certain person owns the property rights to a certain resource, others should not have the same property rights to the same resource. Multiple property rights, no matter how safe, will also diminish an owner’s enthusiasm for resource investment, preservation, and management. If two rational people jointly own a lake, the situation that may emerge is that no one is willing to invest because if one invests, the other partner will share the results of that

2 Basic Principles of Resource Economics

97

investment. If the increased aquatic products one invested in can be fished by the other partner, then what motivation does one have to invest? The partner’s thinking is the same. The premise of joint investment is that all owners agree on the form of investment and the amount of investment. Fishery resources are a highly fluid resource. It is very challenging to determine the exclusive property rights. This objectively also leads to the overuse of the purification capacity of the water environment and the overfishing of fish. Property rights must also be enforceable. Even if property rights are clearly defined, specific, and safe, if they cannot be implemented, they will have no role in the rational utilization of resources. The so-called effective implementation here includes effective supervision of activities that violate regulations and carrying out punishments. Effective punishment must make the expected loss from the penalty for the offender greater than the revenue obtained from breaking the rules. Finally, property rights must be legally transferable. If transfer is not possible, the owner’s enthusiasm for investing in and protecting the resource will diminish. If ownership cannot be transferred, the owner may be unwilling to make a long-term investment. For example, from the perspective of water, if the investor leaves the place of original investment in the future, the investment is nullified, and people will be unwilling to invest long term. Moreover, an effective market mechanism requires that scarce resources be available for the most effective use, and the free transfer of property rights is the approach that guarantees this point. Low Resource Prices First, many natural resource markets at present have not yet developed fundamentally or do not exist fundamentally. The price of these resources is zero; therefore, they are overused and increasingly scarce. Second, although there are markets for some resources, the prices are on the low side; they only reflect the cost of labor and capital and do not reflect the OCs of resource consumption in fisheries, such as the potential costs of fishing grounds or user costs. When the resource price is zero, the resource will be wasted. In addition, the number of sellers and buyers in some resource markets is very small; therefore, the competition between them is very weak. This type of market is referred to as a thin market. This type of market is also considered a market failure. In fact, the prices of many natural resources are on the low side at present, reflecting only labor and capital costs without reflecting the OC of resource consumption in production. Their profits have been overestimated, leading to excessive exploitation and utilization and excessive waste of resources. External Effects in the Use of Resources Externality refers to a favorable effect or unfavorable effect generated by a producer or consumer in the course of their own activities. The benefits brought by such a favorable effect or losses brought by the unfavorable effect are not obtained or borne by the consumer and producer.

98

X. Chen and G. Li

Externality can be divided into two types, positive externality and negative externality. As a typical example of positive externality, the economist Marshall once used the benefits of beekeeper’s bees for fruit farmers as an example. In the example, the beekeeper does not receive the revenue brought by the increase in fruit output due to the bees’ spreading pollen. External effects lead to inconsistency between private costs and social costs, making actual prices and optimal prices inconsistent. This is because social costs do not only include production costs but also include environmental costs. Because environmental costs are outside of market relations, market pricing without taking into account external effects is one of the main reasons for underestimating resource prices. However, in terms of the exploitation of fishery resources, there is a large amount of external diseconomy; a more detailed analysis is made in Chap. 1. In terms of the use of the environmental purification capacity in fishery waters, the polluter often generates overage, polluting the environment and reducing the welfare level of others, but the polluter has not assumed the corresponding responsibility. For example, when upstream farmers use pesticides or upstream industrial enterprises discharge pollution, it will necessarily affect the downstream fishermen’s fishing or fish farming activities and reduce the fishermen’s income.

Public Goods Goods that are not owned by any particular individual but can be enjoyed by anyone are called public goods, such as high seas fish resources. This class of goods has the feature of nonexclusive utilization or consumption; that is, others cannot prevent anyone from consuming the goods for free. For example, a certain fisherman in a high seas fishing ground cannot prevent others from coming to fish. Therefore, in terms of fishery resources, it is a renewable resource and a public good that is not exclusive. In this case, price can neither play a coordinating role in the assignment and utilization of resources between users nor can it provide stimulation for the production or protection of resources and an increase in income. The result of its allocation is overexploitation and inadequate investment in terms of resource management, protection, and improvements in resource production capacity, etc.

Transaction Costs The normal operation of the market is not without costs. Transaction costs are the expenses related to obtaining information, cooperating with each other, and executing a contract in a transaction. Usually, transaction costs are insignificant compared to the benefits of market transactions. However, when transaction costs exceed transaction revenue or there are too few buyers and sellers, it is difficult to establish the market. Without clearly defined property rights, the market cannot be established; with clearly defined property rights, if the transaction costs are very high, there is also no guarantee that the market can definitely be established.

2 Basic Principles of Resource Economics

99

Similarly, there are costs to establishing and executing property rights. If these costs are higher than the revenue brought by property rights, property rights and the markets associated with them will also not be generated. For example, in order to protect fishery resources by establishing property rights, one possible scheme is to parcel out the vast sea to the fishermen, but the cost of doing this is too high, and it is unfeasible. Another scheme involves fishing permits, fishing quotas, and so on; however, the execution cost at sea is quite high. As mentioned earlier, the cost of fishery resource management is also very high. Sometimes, the government can use its power to make the internalized cost of external effects be lower than that of the market, which is one of the reasons governments exist. Uncertainty and Short-Term Planning The protection of natural resources involves the future, and uncertainties and risks exist in the future. The difference between uncertainty and risk is that uncertainty refers to the probability that an unknown outcome may appear. Risk refers to the probability that known possible outcomes would appear. If there is more than one result for an action, then uncertainty exists. There are two types of uncertainty: (1) uncertainty caused by factors that the decision-makers cannot control and (2) uncertainty caused by market failures and an inability to provide price information. The longer the period is, the greater the uncertainty. Generally, uncertainty makes people’s exploitation of natural resources more conservative, which is conducive to the protection and sustainable utilization of resources. The protection and sustainable utilization of natural resources means sacrificing current consumption for future interests. Because people prefer current consumption, future interests are discounted; in particular, high depreciation rates (discount rates) may mean that a certain resource is not preserved. The interest rate is generally used as the discount rate. High interest rates and low resource growth rates may cause a certain species to become extinct. Due to the unique attributes of fishery resources—fluidity and concealment, which make their uncertainty and short-term benefits more obvious—there is greater damage to fishery resources.

Government Intervention and Government Failures Why Government Intervention Is Needed In case of market failure, government intervention is often needed. Market failure is a necessary condition for government intervention, but it is not a sufficient condition because government failure is also possible. Market failure means that it is very difficult for some environmental products and services to establish a market or that it is difficult for the market to operate normally. In case of market failure, government intervention becomes a possible solution. Market failure in the effective allocation of resources provides opportunities and

100

X. Chen and G. Li

reasons for government intervention. In addition, government intervention also requires two conditions: (1) the effect of government intervention must be better than the effect of market mechanisms and (2) the revenue obtained from government intervention must be greater than the cost of the government intervention itself, that is, planning and execution costs and all costs added to other sectors due to government intervention. Theoretically, the purpose of government intervention is to correct market failures through taxation, regulation, and establishment of incentive mechanisms and institutional reforms. If indiscriminate cutting in upstream areas damages forests and causes flooding in downstream areas, then the government should levy taxes on forestry upstream and agriculture downstream to subsidize the replanting of forests in upstream areas. Types of Government Failure Government failure can be divided into four types: (1) distortion of market mechanisms that originally were able to work normally; (2) government interventions that in some aspects were successful but generated external effects on the environment— for example, subsidies for specific chemical fertilizers encourage farmers to select high-yield crop varieties, but they have long-term adverse effects on soil and water resources; (3) the results of government interventions are worse than the results of market failure; and (4) when the market fails and government intervention is needed (revenues are greater than costs), the government does not intervene. Therefore, government failure includes failure to intervene when intervention is needed and includes intervening when intervention is not needed. In addition, according to different levels of decision-making, government failure can also be divided into three categories. (1) Project policy failure—Project policy refers to the government’s policy on public projects and private projects. Public projects are the means by which the government corrects market failures by providing public goods, such as roads, parks, and so on. If the policy is not applied properly, it may become a cause of market distortion. Public projects may crowd out private investment. In addition, investment in some infrastructure projects, such as fishing ports and wharves, may cause major direct effects on the environment and resources. (2) Sectoral policy failure—Sectoral policies involve different economic sectors, especially some sectors related to the environment, such as forest policy, land policy, water resource policy, fishery policy, industrial policy, trade policy, and so on. (3) Macroeconomic policy failure—Monetary, fiscal, exchange rate, and other macroeconomic policies also play important roles in resource allocation and management. Both monetary policy and fiscal policy affect interest rates, and interest rates are macro variables that have an important effect on the microallocation of resources. The higher the interest rate is, the greater the depreciation for the future, the faster the consumption of resources, and the less investment in resource protection. Government regulations on the minimum wage increase labor costs, encourage capital intensiveness, and reduce employment. In places with an abundant labor force, it will cause more unemployed people, which may exacerbate damage to

2 Basic Principles of Resource Economics

101

natural resources. Therefore, the formulation and implementation of any macro policy should take into account its environmental effect.

2.3.4

Basic Theory of Sustainable Development and Approaches for its Realization

2.3.4.1

The Generation and Development of Sustainable Development

Since the 1970s, human beings have put forward a brand-new development model by reflecting on the problems of population, resources, and environment brought about by the traditional economic growth strategy, that is, sustainable development, which is becoming a global strategy for human development. The change in development strategy means a transformation in the ways of economic growth and the mechanisms of resource allocation. The emergence and evolution of the sustainable development theory have experienced a process of deepening the understanding. This theory has gone through roughly four very important milestones, from the generation of the idea and the formation of a theoretical system to being generally accepted by people as a development strategy. 1. The first milestone was the conference on the Human Environment, held in Stockholm in 1972, which emphasized the extensive ecological damage and the multiple aspects of environmental pollution caused by the misuse of resources faced by humankind, the necessity of coordinated development of economy and environment was emphasized. This is the world’s first face of human economic development and the relationship between resources and the environment. Although the conference did not present a clear idea of sustainable development, it did raise awareness of the important role of the resource environment in economic development. The concept of sustainable development emerged from discussions on the relationship between environment and development. The conference was therefore considered to be the first milestone in the emergence of the concept of sustainable development. 2. The second milestone is the World Conservation Strategy: living resource conservation for sustainable development published by the International Union for Conservation of Nature (IUCN) and the World Wildlife Fund (WWF) in 1980. This outline made an appeal that “Human beings, in their quest for economic development and enjoyment of the riches of nature, must come to terms with the reality of resource limitation and the carrying capacities of ecosystems, and must take account of the needs of future generations” (IUCN 1980) thus putting forward this proposition of sustainable development in the earliest international document. 3. The 1987 publication of the research report, Our Common Future, by the World Commission on Environment and Development (WCED), headed by Mrs. Brundtland, is regarded as the third milestone of sustainable development. This

102

X. Chen and G. Li

research report created a clear definition of sustainable development on the basis of an objective analysis of all mankind’s successful experiences and lessons from failures in social and economic development and formulated global sustainable development strategies and countermeasures by the year 2000 and even into the twenty-first century. In this report, sustainable development is a development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It contains within it two key concepts: the concept of “needs,” in particular the essential needs of the world’s poor, to which overriding priority should be given; and the idea of limitations imposed by the state of technology and social organization on the environment’s ability to meet present and future needs (WCED 1987). Therefore, the first requirement of sustainable development is to satisfy the basic needs of all people, especially the poor people in the world, and to ensure everyone can achieve a better life. Second, sustainable development requires that technological conditions and social organizations impose limits on the ability of the environment to satisfy current and future needs; at the least, economic development should not threaten the natural systems that support life on earth: the atmosphere, water, soil, and living things. This idea of sustainable development has been widely accepted and recognized, triggering a heated discussion globally on sustainable development issues, and greatly promoted the formation and maturity of a theoretical system for sustainable development. 4. The fourth milestone is the United Nations Conference on “Environment and Development” for Heads of State that convened in Rio de Janeiro, Brazil, in 1992. At this conference, programmatic documents such as the Rio Declaration, Agenda 21, and the Convention on Biological Diversity were adopted, and a consensus on sustainable development was formed, which recognized that the environment and economic development are inseparable. Agenda 21, adopted at the general meeting, is an extensive action plan that provides a blueprint for action for the global implementation of sustainable development and requires each country to implement it in terms of policy formulation and strategic choices. The convening of the United Nations Conference on “Environment and Development,” as an important milestone, marks that sustainable development has gone from idea and theory toward practice and has become a practical goal pursued jointly by mankind. From economic growth to sustainable development are two great leaps in human understanding. If the transition from economic growth to economic development has led to an expansion of awareness of people from the single economic sphere to the social sphere and the unity of economic and social objectives, then, the emergence of sustainable development has led to the recognition of the role and place of the resource environment in socioeconomic development, the dynamic equilibrium between the resource environment system and the economic system, and the unity of economic, social, and environmental objectives, it is also a breakthrough and development of traditional economics.

2 Basic Principles of Resource Economics

2.3.4.2

103

The Concept of Sustainable Development

Since people have recognized the issue of sustainable development, there has been an extensive discussion on its concept and content. Because the sustainable development involves all aspects of development, it is understood differently from different perspectives.

Several Representative Viewpoints 1. The emphasis is on defining sustainable development from natural attributes, that is, so-called ecological sustainability. It aims to illustrate the ecological balance between natural resources and the extent of their exploitation in order to satisfy the continuously increasing demand for ecological resources brought by development. For example, in November 1991, at the symposium on sustainable development jointly held by the International Association for Ecology and the International Union of Biological Sciences, sustainable development was defined as follows: “protect and strengthen the environmental system of production and the ability to update.” In addition, some scholars proceeded from the concept of the biosphere and thought that sustainable development is seeking an optimal ecosystem to support the integrity of the ecology and the realization of human aspirations so that the human living environment can be sustained. 2. The emphasis is on defining sustainable development from social attributes. For example, in Care for the Earth—A Strategy for Sustainable Living, which was jointly published by the IUCN, the United Nations Environment Programme, and the WWF in 1991, sustainable development is defined as “improving the quality of human life while living within the carrying capacity of supporting eco-systems”(IUCN/UNEP/WWF 1991) which puts emphasis on pointing out that the ultimate foothold of sustainable development is human society, that is, improvements in the quality of human life and the creation of a beautiful living environment. This idea of sustainable development places particular emphasis on social equity as the mechanism and goal for the realization of sustainable development strategies. Therefore, the connotation of “development” includes approaches for increasing the level of human health, improving the quality of human life, and obtaining necessary resources and for creating an environment that guarantees equality, freedom, and human rights for people. 3. Defining sustainable development from economic attributes. It holds that sustainable development encourages economic growth rather than constraining economic growth in the name of protecting the ecological environment because economic development is the foundation of national strength and social wealth. However, the sustainable development of the economy requires not only paying attention to the quantity of economic growth but also paying more attention to the quality of economic growth to realize the coordination and unification of economic development with elements of the ecological environment, not at the

104

X. Chen and G. Li

expense of eco-environment. For example, sustainable development is defined as “making the net benefits of economic development increase to a maximum degree under the premise of protecting the quality of natural resources and the services they provide.” There are also scholars who have proposed the following goal for sustainable development: “the use of resources today should not reduce actual income in the future.” 4. The emphasis is on defining sustainable development from scientific and technological attributes. In the implementation of sustainable development, in addition to policy and management factors, scientific and technological progress also plays an important role. Without the support of science and technology, human sustainable development is out of the question. Therefore, some scholars have extended the definition of sustainable development from the perspective of technological choice, believing that sustainable development involves a shift toward cleaner and more efficient technologies—as close as possible to “zero emission” or “closed” process methods—to reduce the consumption of energy and other natural resources as much as possible. There are also scholars who have proposed that sustainable development is the establishment of processes or technological systems that rarely generate waste and pollutants. They believe that pollution is not an inevitable result of industrial activities but, rather, a manifestation of poor technology and inefficiency. They advocate for technological cooperation between developed countries and developing countries in order to reduce technology gaps and increase the economic productivity of developing countries. At the same time, technologies for more efficient use of fossil energy should be developed on a global scale, safe and affordable renewable energy technologies should be provided to limit emissions of carbon dioxide that contribute to global warming, and appropriate technology options should be adopted, halt the production and use of certain chemicals in order to protect the ozone layer and gradually solve global environmental problems.

Viewpoints Generally Accepted by the International Community Although the above concepts of sustainable development are representative, they are all defined from one aspect and have not been generally recognized by the international community. In 1987, on the basis of a systematic survey and research on the world economy, society, resources, and environment, the WCED, chaired by former Prime Minister of Norway Mrs. Brundtland, presented a lengthy special report—Our Common Future. The report defines sustainable development as follows: development that both satisfies the needs of people in the present age and does not harm the ability of people in future generations to satisfy needs. During the 15th Session of the Governing Council of the United Nations Environment Programme in May 1989, the Statement on Sustainable Development was adopted. In this statement, sustainable development refers to development that satisfies current needs without weakening the ability of future generations to satisfy needs; furthermore, it absolutely does not include the meaning of violating national sovereignty.

2 Basic Principles of Resource Economics

105

Therefore, this Brundtland definition, “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs,” has become a concept of sustainable development that is generally accepted by the international community. Its core idea is that healthy economic development should be established on the basis of ecological sustainability, social justice, and people’s active participation in their own development decisions. The goal it pursues is to satisfy the various needs of mankind so that individuals are fully developed as well as to protect resources and the ecological environment so as not to constitute a threat to the survival and development of future generations.

2.3.4.3

Fundamental Principles of Sustainable Development

Sustainable development, as the new development mode for mankind, if it is to be truly effectively implemented, the following three principles must be followed. 1. The principle of fairness—So-called fairness refers to the equality of opportunity options. The principle of fairness required for sustainable development includes three levels of meaning. The first is the fairness of the current generation, that is, the horizontal fairness between people of the same generation. The second is intergenerational equity, that is, vertical equity between generations. The third is the fair assignment of limited resources. At present, the assignment of limited natural resources is very uneven. 2. The principle of sustainability—The key to the principle of sustainability is that human economic and social development cannot exceed the carrying capacity of resources and environment. Resources and environment are the basis and conditions for human development. Apart from resources and the environment, human survival and development are out of the question. The sustainable use of resources and maintaining the sustainability of ecosystems are the primary conditions for human sustainable development. 3. The principle of commonality—In view of the differences in the culture, history, and development level of various countries in the world, the goals, policies, and implementation for sustainable development cannot be unique. But sustainable development is considered as the goal of global development, the principles of fairness and sustainability embodied therein should have common compliance. Furthermore, to realize this overall goal, joint action must be taken in common globally. Broadly, the strategy for sustainable development is to promote harmony among humans and between humans and nature. When everyone is considering and arranging his/her own action, if s/he can take into account the effect of this action on other people (including future generations) and the ecological environment and can act in good faith in accordance with the principle of “commonality,” then a reciprocal symbiotic relationship can be maintained between humans and between humans and nature, and only in this way can sustainable development be realized.

106

2.3.4.4

X. Chen and G. Li

Basic Features of Sustainable Development

1. Sustainable development encourages economic growth. Moreover, sustainable development not only places importance on growing in quantity but also pursues quality improvements, efficiency improvements, energy conservation, waste reduction, changes in traditional production and consumption modes, and the implementation of clean production and civilized consumption. 2. Sustainable development has to be based on protecting nature and coordinate with the carrying capacity of resources and environment. Therefore, it is necessary to protect biodiversity, maintain the integrity of Earth’s ecology, and ensure that it remains within the carrying capacity of the planet. 3. Human sustainable development has to use the improvements and increase in the quality of life as objective and adapt to social progress. Therefore, sustainable development must address the poverty of the majority of the population. Only the eradication of poverty can generate the capacity to protect and build the environment. Different countries in the world have different stages of development and different specific goals of development, but the connotation of development should include improving the quality of human life, improving the level of human health, and creating an equal and free social environment. The above analysis shows that sustainable development includes ecological, economic, and social sustainability and that they are inseparable. Ecological sustainability is the foundation, economic sustainability is the condition, social sustainability is the objective, and the common pursuit of mankind should be the sustainable, stable, and healthy development of a natural-economic-social complex system.

2.3.4.5

Approaches for the Realization of Sustainable Development

From traditional economic growth strategies to sustainable development strategies, it is necessary to make changes in development goals, modes, and approaches. Starting from the goals of sustainable development and the essential requirements, the basic approaches to sustainable development mainly include bringing environmental and resource value into the national economic accounting system, changing the ways of production and consumption, adjusting industrial and economic policies, maintaining the sustainable use of natural resources, and so on.

Bringing Resource and Environmental Value into the National Economic Accounting System Although the current economic accounting system plays an important role in social and economic development, it also has serious flaws: ① for resources that are neither priced, accounted for, nor depreciated, their value and losses are not reflected as they

2 Basic Principles of Resource Economics

107

should be in the national income or the gross national product (GNP); ② without counting resource stocks and usage, no measurement relationship is established between income increases or decreases and resource exhaustion or proliferation; ③ there is not much representing natural resources and the ecological environment in the national economic accounts; and ④ no reasonable depletion rate is formulated for nonrenewable resources, resulting in an accelerated depletion of resources, and the total profit obtained from economic activities is at the cost of sacrificing the quality of the environment and the interests of future generations. The “external diseconomy” used at will by resources without prices makes the resources drift away to outside of the national economic accounting system, which ignores the input to and depletion of environmental resources and is unable to fully reflect the operating status of the nation. A flawed traditional national economic accounting system does not include the accounting of natural resources and the environment, which is not favorable to realizing the goals of sustainable development. An important measure in the reform of the traditional national economic accounting system is to establish a natural resource and environmental accounting system, such as replacing the traditional GNP or gross domestic product (GDP) with a “green GNP” (that is, sustainable income). There are two main methods for resource and environmental accounting: physical accounting and value accounting. In so-called physical accounting, physical units are used to represent the flow and stock of the environment and natural resources, while in value accounting, a unified currency value is used to measure environmental goods and labor services. Physical accounting and value accounting are not independent of each other. Generally, physical accounting is the premise or basis of value accounting.

Implementing the Industrial Policies of Sustainable Development Adjustment of industrial policies in accordance with the goals of sustainable development to thereby change the traditional national economic system into a new type of national economic system that conforms with the features of sustainable development is the main approach for a country to implement sustainable development. Strategic change mainly indicates structural adjustment under established goals, whereas the main features of the industrial structure for sustainable development are resource conservation and clean production. Its main contents include the following: 1. Establish an ecological agricultural production system and implement an intensive agricultural production system based on improvements to the agricultural ecological environment, with content such as land saving, water saving, renewable energy, popularization of good strains, and increase in unit yield, to promote an ecologically virtuous cycle. 2. Establish a clean production-type industrial production system centered on energy savings and material savings that consider the overall benefits, and

108

X. Chen and G. Li

vigorously implement clean production within enterprises. Through scientific and rationalized product design, raw material selection, process reform, production process management, internal circulation and utilization of materials, and other links, minimize the final pollutants generated by industrial production. 3. Establish a high-efficiency, saving-type comprehensive transportation system centered on saving transportation capacity. 4. Form a life service system with the features of moderate consumption, diligence, and thrift. 5. Establish an environmental protection system with improvement in the quality of the environment and proliferation of renewable resources as the main tasks.

Improving the Modes of Economic Growth and Changing Consumption Traditional economic development often only pays attention to quantitative growth, and economic growth is, to a great extent, at the cost of harming the ecological environment. Without qualitative improvement, pure quantitative growth cannot last. Realizing change in the ways of economic growth from extensive to intensive is key to guaranteeing the coordinated development of society, the economy, resources, and the environment and to realizing the strategic goals of sustainable development. The ways of extensive economic growth not only make it difficult to increase economic quality and benefits but also consume energy excessively and cause excessive utilization of natural resources, and the excessive waste of resources and waste discharge also seriously pollute the environment. Intensive-type growth considers connotative development, puts an emphasis on resource conservation and utilization, and considers efficiency in economic resource allocation. This requires economic development to change from mainly relying on setting up new projects, rashly putting up establishments, and pursuing the extension of quantity to expand reproduction to mainly relying on the connotation of technological advancement and improving the quality of workers to expand reproduction. While earnestly changing economic growth and maintaining the coordinated development of society, the economy, and the environment at the same time, we must also change the ways of consumption and guide people to moderate consumption. So-called moderate consumption is relative to the two consumption situations of excessive frugality and luxury consumption of material goods at a certain productivity level and resource condition. From a vertical perspective, it is a dynamic concept; that is, under different levels of productivity and resource conditions, moderate consumption is not equivalent in quantity; from a horizontal perspective, it is an equilibrium concept that neither begrudges material wealth nor intemperately consumes and misuses material wealth. It can better satisfy the needs of life but does not go so far as the just right of luxury consumption. Overly thrifty consumption and luxurious and wasteful consumption are all harmful. Moderate consumption can save resources and protect the environment, realizing the sustainable use of resources and the environment, which is consistent with the goals of sustainable development strategies. However, a sharp decline in resources,

2 Basic Principles of Resource Economics

109

intensified environmental damage, and severe situations in which human survival and development are threatened have emerged globally are largely related to the intemperate human devouring and consumption of material wealth. Highconsumption societies in some developed countries are consuming far more of the Earth’s resources than the shares they should get. For example, the US population only accounts for approximately 6% of the world’s population, but it consumes 30–50% of the world’s resources. A US scholar pointed out that the effect on world resources by one American is equivalent to that by more than 100 people in poorer countries. Moreover, a lifestyle based on devouring material wealth is spreading in many countries, even in developing countries. To this end, the International Conference on Population and Development held in 1994 made an appeal to all countries that they should reduce and eliminate unsustainable ways of production and consumption and implement moderate consumption. The contents of moderate consumption by and large include the following: a dietary structure dominated by plantbased foods and the development of high-conversion-rate grain-saving animal products and food processing industries; the development of chemical fiber blends to substitute for cotton cloth to alleviate pressure on cultivated land; advocacy for the development of centralized heating and gas supply in cities; and the development of means of transportation mainly via public buses and trolleys, subways, and so on.

Implementation of Natural Resource Protection and Sustainable Use Natural resources are the basis of human existence and social and economic development. The state of abundance and combination of resources, to a great extent, determine the industrial structure and economic advantages of a country and region. The basic approaches to realize the sustainable use of resources are, one, to increase the effective supply of natural resources and, two, to inhibit the demand for natural resources on the ground. The main manifestations are as follows. 1. Make efforts to increase the supply of natural resources—First, resource surveys and prospecting have to be strengthened to locate resources and provide an accurate and reliable basis for decision-making. Second, the cultivation and maintenance of resources must be strengthened. Among natural resources, many are renewable. Through breeding and maintenance, stocks can be effectively increased. In addition, the comprehensive utilization of resources must be strengthened to improve the recovery and comprehensive utilization rates of waste materials, turn trash into treasure, and alleviate pressure on resource exploitation. 2. Inhibit demand for natural resources—Whether or not natural resources on Earth can satisfy the needs of development rests with not only the amount in the total supply of resources but also with the speed by which people exploit and utilize resources. If the demand for natural resources can be effectively inhibited, then the sustainable use of resources will be favorable. In particular for renewable resources, if we can limit the scale of exploitation and utilization to the scope of

110

X. Chen and G. Li

natural renewal capacities, then such resources are indeed inexhaustible. Therefore, curbing the demand for natural resources is the same as expanding the supply of natural resources; they are two approaches for realizing the sustainable use of natural resources. Inhibiting demand certainly does not mean limiting development, but it does for sustainable development. Therefore, inhibition on demand cannot be at the cost of sacrificing development but can only be realized in development. First, natural resources have to be utilized sparingly. The benefits brought by the conservation of one type of resource do not only protect this type of resource but also generate many related benefits. For example, by saving electric power, the consumption of fossil fuels be reduced, the land needed to be submerged due to the construction of hydropower stations and the land required for resettling the migrants can be reduced, and the atmospheric pollution brought by the burning of fossil fuels by thermal power plants and a large amount of generated waste can be avoided. Second, resource substitution has to be developed, including substitution in production and substitution in consumption. Due to the development of science and technology, it is possible for us to substitute one substance by using another substance in production, while protecting the use and quality of the products from being affected at the same time. There have been many successful examples of this type of substitution in history, such as having steel, iron, and cement as substitutes for wood in the construction industry, having plastics as substitutes for metals in electrical appliances, and so on. When a relatively abundant and relatively inexpensive resource can substitute for a certain type of relatively scarce and relatively expensive resource, this kind of substitution has important significance. The demand for scarce resources will be inhibited, thereby extending the time in which it can be utilized. Substitution in consumption is the substitution of a certain type of product with another type of product that can similarly satisfy the travel requirements of people, while also saving fuel consumption greatly and reducing the demand for energy at the same time.

Establishment of a Macrocontrol System for Sustainable Development The adjustment of economic policies to make economic policies conform with the goals of sustainable development is to use economic levers such as finance, price, credit, interest, taxation, and so on to affect and regulate social production, assignment, circulation, and consumption, limit activities that damage the environment, and promote the reasonable exploitation and utilization of natural resources to realize sustainable development. 1. Financial policy. Finance has an important constraining relationship with the optimal allocation of resources. It is necessary to give full play to the constraining mechanisms of finance on resources and to establish effective financial policies that tilt toward environmental protection. The first is to control the allocation scale of resources through the total amount of money and credit to reduce the total amount of resource consumption while controlling the total amount of pollutants

2 Basic Principles of Resource Economics

2.

3.

4.

5.

111

discharged at the same time to alleviate environmental pressure. The second is to promote the adjustment of the resource allocation structure and increase allocation benefits by regulating loans. In particular, input in environmental protection activities should be increased to ensure the necessary credit scale. The third is to play a guiding role in the optimal allocation of resources through regulations and to give preferential policies to economic and social activities that are beneficial to environmental protection. Fiscal policy—The fiscal mechanism is an important means of regulating the assignment of national income. The first is to bring funds for environmental protection into the government’s fiscal budget. The second is to establish special subjects for environmental protection income and expenditures at all fiscal levels and to gradually increase the proportion of fiscal expenditures at all levels for environmental protection. The third is to establish a fund system for environmental protection. Taxation policy—Under market economy conditions, taxation is the main mandatory means for a country to participate in the assignment of national income and obtain fiscal revenue. The assignment relationships of the state, enterprises, and individuals are mainly reflected in the form of taxation. Countries can use a variety of flexible ways, such as categories of taxes (categories of fees), tax rates, tax increases, reductions, and exemptions, and so on, to adjust various contradictions in the operation of the economic, social, and environmental systems. Therefore, tax policies should tilt toward environmental protection, and a set of preferential tax policies that are favorable to sustainable development should be formulated. The first is to increase or decrease tax categories, the second is to adjust the tax threshold, and the third is to regulate the tax rate, giving play to the powerful regulatory role. Price policy—The low-priced and uncompensated use of natural resources is the real economic reason for resource damage and loss. Therefore, it is necessary to modify the prices of the resources themselves and commodities to make them reflect the true value of natural resources and the environment. Pollution permit system and trading policy—As the representative of society and the owner of environmental resources, the government can sell power to discharge certain pollution. Polluters can buy this power from the government. Additionally, the right to pollute can also be exchanged between polluters who hold the right to pollute. This trading policy for the right to pollute is an alternative method for converting environmental resources into a market commodity and bringing it into the price mechanism. It more effectively controls the effect of social and economic activities on the quality of the environment. When economic activities increase and new sources of pollution increase, polluters must purchase a reserved emission load or an emission load allowed for selling from the government or other polluters with low treatment costs, thereby ensuring that the total pollution load does not change and ensuring the quality of the environment.

112

X. Chen and G. Li

References IUCN (1980) World conservation strategy: living resource conservation for sustainable development. Gland WCED (1987) Our common future. World commission on environment and development. Oxford University Press, Oxford IUCN/UNEP/WWF (1991) Caring for the earth: a strategy for sustainable living. Gland, Switzerland

Chapter 3

Bioeconomic Model for a Single Species of Fish Xinjun Chen, Gang Li, and Huajie Lu

Abstract In the current fishery stock assessment model, the model with a single species is the most commonly used. In a commercial exploitation fishery, the intensity of resource exploitation (such as the number of fishing boats) depends not only on the quantity of fishery resources, but also on the cost of fishing, the price of catch species, social employment, aquatic product market, and even the demand of the state for animal protein. Therefore, the exploitation and utilization of fishery resources is a systematic project, its factors in the economy, society, and other factors need to be considered. In this chapter, starting from the basic theory of fishery stock assessment, the law of population change in fishery resources, and the basic model surplus production model and dynamic comprehensive model are analyzed in brief. We expound the bioeconomic optimal allocation and its model of single fishery resource in three cases, i.e., static (without considering discount rate), dynamic (considering discount rate), and market effect (considering price change). Gordon-Schaefer model, fleet distribution delay model based on Smith model, age structure model, and other bioeconomic models are described in detail in this chapter. At the same time, the following fisheries such as Scomberomorus niphonius in the Yellow sea, fin whale in the Antarctic, bighead flounder in the Pacific, and Chinese prawn in the Bohai sea are analyzed as examples. Keywords Single species · Bioeconomy model · Surplus yield model · Age structure model

X. Chen (*) · G. Li · H. Lu College of Marine Sciences, Shanghai Ocean University, Lingang New city, Shanghai, China e-mail: [email protected]; [email protected]; [email protected] © China Agriculture Press 2021 X. Chen (ed.), Fisheries Resources Economics, https://doi.org/10.1007/978-981-33-4328-3_3

113

114

3.1

X. Chen et al.

Basic Theory of Fishery Resource Assessment

3.1.1

Changes in Quantity of Fishery Resources and the Basic Model

3.1.1.1

Basic Reasons for Changes in Population Numbers

There are many reasons that affect changes in resource quantities but viewed from the basic concepts, they can generally be summed up as the biological characteristics of the fish species themselves as well as the restrictions of living environment factors and man-made factors, such as fishing. Fish species factors include reproduction, growth, and death, among others, and environmental factors include water temperature, salinity, food organisms, interspecific relationships, and harmful organisms, among others. Reproduction is restricted by the fecundity of the parent population, fertilization rate, and the survival rates of the fish eggs and larvae. Growth is affected by the density and age composition of the population resource and the bait and hydrological conditions of the external environment. Death includes natural death and fishing death, and natural death includes death caused by factors such as predators and diseases. The interrelationships between the population and the species also affect changes in population numbers. In the case of comparatively poor bait conditions, some fish species feed on their own eggs and larvae, and different species feed on the same bait, generating interspecific food competition and affecting the food security of the population, and thus result in changes in population numbers. Fishing is one of the main factors that affect changes in fish population numbers. To acquire balance, appropriate fishing allows the population that is reduced in numbers to be compensated by the population that is replenished. Overfishing disrupts the balance because of the inability of a resource to compensate for losses, causing population numbers to decrease greatly, that is, resource damage. Generally, changes in population numbers result from changes in the comparative relationship between the degree of recruitment and the degree of reduction in a population. The reasons that cause changes in the comparative relationship between the two can be classified basically into two categories: natural factors and man-made factors. Many factors are contained in the two major categories, and some factors have effects on both recruitment and reduction. In summary, there are five major factors that affect changes in quantity of fishery resources: resource recruitment, growth, natural death, and man-made and environmental factors.

3 Bioeconomic Model for a Single Species of Fish

3.1.1.2

115

Basic Law and Model of Changes in Population Numbers

Not only are there numerous factors that affect changes in population numbers, but they are also complicated. Changes in population numbers often result from the synthesis of various factors. Fishing is one of the main factors that affect changes in fish population numbers. To acquire balance, appropriate fishing allows the population that is reduced in numbers to be compensated by the population that is replenished. Overfishing disrupts the balance because of the inability to appropriately compensate, which causes the amount of a resource to decrease greatly. This is the “unsustainable utilization” of fishery resources to which people usually refer. In 1931, the well-known U K fishery resource specialist Russell summed up the basis of research on fishery theory by Soviet scholar Baranov and systematically summarized the research on changes in quantity of fishery resources. Russell noted, “the intensification of fishing can increase the catch, but after reaching the maximum limit, the more intense the fishing, the greater the decrease in catch.” To this end, he proposed a basic model of changes in resource quantities according to four factors that increase and decrease the numbers of a resource group. Four factors (natural death, growth, fishing, and recruitment) that affect changes in the number of fishery resource groups and their changes in numbers are displayed in Fig. 3.1. The expression for the basic model of changes in resource quantities proposed by Russell is: Bðt þ 1Þ ¼ Bðt Þ þ R þ G  ND  Y

ð3:1Þ

In the formula, B(t) represents the resource biomass of the available resource groups at time t; B(t + 1) represents the resource biomass of the available resource groups at time t + 1; and R, G, ND, and Y represent the amount of recruitment, the amount of growth, the amount of natural death, and the yield (that is, the fish catch), respectively, within the time interval from time t to time t + 1. From the above formula, when Y < (R + G  ND), the amount of the resource increases; that is, B(t + 1) > B(t); when Y > (R + G  ND), the amount of the resource decreases; that is, B(t + 1) < B(t); and when Y ¼ (R + G  ND), the amount of the resource remains in balance; that is, B(t + 1) ¼ B(t).

Replenishment

Catchable group

Natural death

Growth Replenishment Growth

Natural death Catchable group

Yield

Fig. 3.1 Changes in the number of available fishery resource groups. Note: The upper figure is when there is no fishery; the lower figure is when there are fisheries

116

X. Chen et al.

The prey resource group, because natural death and fishing cause its numbers decrease, relies on recruitment by juvenile fish growing into specifications that allow it to be fished and compensation by the growth of existing fish in the resource group. Without fisheries (unexploited), to achieve balance, the amount of resource growth obtained through recruitment and growth compensates for the reduction caused by natural death. With the fishing and exploitation of fishery resources, another item of loss in resources is added, that is, added death due to fishing, which reduces the number in groups for fishing and causes a shift in age toward a lower age group; finally, when fishing increases to the maximum scale allowable by fishery conditions, a new balance is established. In such a case, the fish catch attains a new balance due to changes in one or more important factors (natural death, growth, and recruitment).

3.1.1.3

Relationship among Stock, Increment, and Yield

Fish replenish their species through continuous self-reproduction, thereby providing the possibility for the sustainable use of fish resources. However, as a regenerable resource, fish cannot regenerate forever in any situation. For example, to be able to persist, a certain species of fish must maintain a certain group number or stock (amount of resource). If the stock level is lower than the minimum viable population, then the species will become extinct. The stock level for a certain type of fish is determined by the proliferation ability that the species has in terms of biology and by the level of fishing. The fish stock level in period t directly affects the amount of fish that may be fished in period t + 1; and the amount of fishing in period t + 1 directly affects the fish stock level in period t + 2, and so on. Therefore, the fishing amount affects the flow of fishery resources in the future. The aforementioned relationship usually can be expressed by using the following mathematical formula: dBðt Þ ¼ F ½Bðt Þ  Y ðt Þ dt

ð3:2Þ

In the formula, B(t) is the fish stock in period t; F[B(t)] is the fish increment in period t; and Y(t) is the yield in fish caught in period t. The relationship between fish stock levels and their increments is shown in Fig. 3.2. In Fig. 3.2, the abscissa represents the stock, and the ordinate represents its increment; in the range from B to B*, the increment increases from left to right as the stock continuously increases, and beyond B*, the increment decreases as the stock increases. When the stock is at B0, the increment is 0 because, in the beginning, the bait in the ocean (or rivers and so on), such as plankton, is comparatively abundant, and the reproductive conditions are comparatively good. Therefore, at this point, as the stock increases, the increment also increases. However, when the

3 Bioeconomic Model for a Single Species of Fish

117

Increment

Y2

F(B*)

Y1 O

B

B2

B*

B1 B0

Stock

B2, B1, B*, and B0 are the resource stocks; Y1 and Y2 are the hypothetical amounts of fishing; F(B*) is the increment

Fig. 3.2 Relationship between fish stock and increment. B2, B1, B*, and B0 are the resource stocks; Y1 and Y2 are the hypothetical amounts of fishing; F(B*) is the increment

stock exceeds B*, because the average amount of feed bait, such as plankton, that each fish can obtain is gradually reduced at this time, the increment decreases as the stock increases. When the stock is at the B0 level, the stock level is in a natural state with no man-made interference. At this time, the natural growth rate is equal to natural mortality, and an equilibrium state is reached; therefore, B0 is also referred to as the natural equilibrium point. When a situation with extremely good (or bad) natural conditions is occasionally encountered, the stock level temporarily exceeds (or falls below) B0; and when natural conditions return to the state of a common year, the stock level returns to the B0 state; that is, the stock level fluctuates around B0. In Fig. 3.2, B is referred to as the minimum viable population in biology. If the stock level of B moves to the right, then development is in the direction of B0; if it moves to the left, then development is in the direction of population extinction. When the increment of the stock level is equal to the amount of fishing, the state of sustainable use can be maintained at this level. For example, when the stock is at B*, the amount of fishing is exactly equal to F(B*) and the stock can be maintained continuously at B*. Then, F(B*) represents the increment when the stock is at B*; at this time, the increment reaches a maximum, and B* is usually referred to as the stock for the maximum sustainable amount of fishing. Now, assume that when the amount of fishing is Y1 (Fig. 3.2), it intersects with the increment curve at B1 and B2. From biological characteristics, which side is more stable among stock B1 or stock B2? First, when the stock level is above B1 and below B0, the amount of fishing Y1 > the increment. To ensure that the amount of fishing Y1 is greater than the incremental part, one can only rely on the capital of the current stock; then, the stock in the next period will be reduced, and the stock will eventually become B1. Second, when the stock level is between B2 and B1, the increment > the amount of fishing Y1, and the incremental part that is not fished is added to the stock in the next period (becoming part of the stock in the next period). In this way, the stock in the next period increases and eventually becomes the stock at B1. Because the

118

X. Chen et al.

current state of the stock of fish is often restored to B1, B1 is usually referred to as the absolutely stable equilibrium stock in biology. Third, when the stock level is between 0 and B2, the stock decreases to below B2, and the amount of fishing Y1 > the increment. To ensure the amount of fishing Y1, one can only rely on eating the capital of the current stock. In this way, the stock in the next period will be reduced, ultimately causing this population to develop in the direction of extinction. Once the stock moves to the left of B2 (the direction of decrease), it cannot be restored to the original state, and it will continuously decrease. At B2, although the amount of fishing Y1 can be realized, the stock is in unstable equilibrium, as referred to in biology. In summary, if the amount of fishing is controlled to within 0 to F(B*) in Fig. 3.2 and the stock is controlled to within B* to B0, the steady equilibrium state of the fish stock will certainly be reached. However, when the amount of fishing is Y2 > F(B*), as shown in Fig. 3.2, extinction will be the ultimate result.

3.1.1.4

Population Growth Model of Fishery Resources— Logistic Model

As mentioned above, factors that affect the growth of fish populations include internal factors and external factors. Internal factors mainly refer to fecundity and mortality, and external factors include biological factors and abiological factors. Biological factors mainly refer to competitors or predators, and abiological factors mainly refer to constraints in terms of the physical environment, such as light, water temperature, and ocean currents, among others. There are many models for the growth of biological populations, for example, the geometric growth model, the exponential growth model, the logistic growth model, and the random growth model. However, for fishery resources, the most commonly used growth model is the logistic growth model. Generally restricted by the food, space, or other available resources in the marine environment, the growth of fish population numbers will trend to a finite value. In other words, the reproductive rate and mortality of each individual fish will be affected by population density. This limitation is determined by the resource situation under specific environmental conditions, i.e., the environmental carrying capacity. The environmental carrying capacity can be applied to a population growth model in which the population increases but the growth rate decreases. When the population size is equal to the environmental carrying capacity, population growth stops, but the population number remains unchanged. Then, the change in fish population numbers can be expressed as:
 dB B ¼ rB 1  ¼ F ðBÞ dt K In the formula, B is the population number; r is the intrinsic rate of increase in the population; and.

ð3:3Þ

3 Bioeconomic Model for a Single Species of Fish

119

K is the environmental carrying capacity. The aforementioned equation is a logistic model for population numbers. The change in population numbers over time can be represented by an S-shaped curve. However, due to limitations by the environmental carrying capacity K, for a resource group that is not exploited and utilized, its resource amount will increase until B1 (Fig. 3.3). Fig. 3.3 Schematic diagrams of the distribution of the population growth model (Seijo et al. 1998). (a) Relationship between the amount of resource growth dB/dt and the resource amount. (b) Relationship between resource amount and time (year). (c) Relationship between the amount of resource growth dB/dt and time

(a)

(b)

(c)

120

3.1.2

X. Chen et al.

Surplus Production Model

The surplus production model is also called the equilibrium yield model or the comprehensive production model; it is one of the main models for fishery resource assessment and management. This model takes the population or resource group as the research and analysis unit, and it clarifies the relationship of balance between the sustainable yield and maximum sustainable yield of a resource group and fishing effort, fishing mortality, and resource group size. The provision of data it requires is only the fishery statistical data for multiple years of fish catch Y and the fishing effort f or the catch per unit effort (CPUE); the biological data for the resource group is not needed. Therefore, for resource groups without age composition data or for which age is difficult to identify, such as short-lived tropical fish, it is more appropriate to apply this type of model. The assumptions for this model mainly include the following: 1. In a given limited ecosystem, due to the limited space and bait guarantees, the growth of any resource group in terms of resource biomass will gradually stop after it approaches the maximum carrying capacity of the ecosystem, and its resource amount is the maximum carrying capacity B1 of the environment; and. 2. The value of B1 approaches the original resource amount for this resource group (or population), that is, the resource biomass when it is not exploited.

3.1.2.1

Schaefer Model

In a state in which a fishery resource is exploited and utilized, Schaefer (1954) assumes that the fishing yield can be expressed using the following formula: Y ðt Þ ¼ qfBðt Þ

ð3:4Þ

In the formula, f is the fishing effort; and. q is the catchability coefficient, which represents the yield caught by the amount of per unit fishing effort. Then, the resource amount for a certain population over time can be expressed using the following formula: h i dB B ¼ rB 1  Y dt K

ð3:5Þ

When the population number reaches a balance, that is, when dB/dt ¼ 0, the amount of death generated by nature and fishing can be compensated by the increase in the growth of individuals in the population and the amount of recruitment. Then, the equilibrium yield can be expressed using the following formula:

3 Bioeconomic Model for a Single Species of Fish


 B Y ¼ rB 1  K

121

ð3:6Þ

Y B þ ¼1 rB K Substitute Formula (3.4) into Formula (3.6): qfB B þ ¼1 rB K Thus, the sustainable (equilibrium) resource amount (Beq) can be expressed as a function of fishing effort:  Beq ¼

 qf K 1 r

ð3:7Þ

Under a given fishing effort, a corresponding amount of resource Beq will be generated, and there is an inversely proportional relationship between the two. Substitute Formula (3.7) into Formula (3.4), and the formula for equilibrium yield can be obtained:   qf Y ¼ qfK 1  r

ð3:8Þ

Formula (3.8) represents the functional relationship for the long-term yield of fisheries. This model is referred to as the Gordon-Schaefer model, which presents as a parabola, with fishing effort as the abscissa and fishing yield Y as the ordinate. When the population number reaches an equilibrium state, the yield Y corresponding to a given level of fishing effort f is the sustainable yield. As the fishing effort f increases, the sustainable yield will increase to the maximum sustainable yield (MSY), after which it continues to decrease as the fishing effort f increases (Fig. 3.4). Now, we will derive the MSY and its corresponding fishing effort fMSY. After derivation of Formula (3.8), the following formula is obtained: dY 2q2 fK ¼ qK  ¼0 df r Solve the above formula, and rearrange it:

122 Fig. 3.4 The yield-fishing effort curve (Schaefer model)

X. Chen et al.

Y MSY

0

fMSY

Fishing effort

2q2 fK ¼ qK r Then, f ¼

qKr 2q2 K

Therefore, the fishing effort corresponding to the MSY is: f MSY ¼

r 2q

ð3:9Þ

Substitute Formula (3.9) into Formula (3.8): Y¼

qKr q2 Kr 2  2q 4q2 r

Then, the maximum sustainable yield YMSY is: Y MSY ¼

Kr 4

ð3:10Þ

Similarly, the amount of resource BMSY and the fishing mortality coefficient FMSY corresponding to the MSY can be obtained: BMSY ¼

B1 2

ð3:11Þ

3 Bioeconomic Model for a Single Species of Fish

F MSY ¼

3.1.2.2

123

KB1 2

ð3:12Þ

Fox Model

This model is a revision of and a supplement to the Schaefer model. Because the MSY for the analysis of the status of many fisheries is not at B1/2, this model uses the exponential relationship of CPUE to f as a representation (Fig. 3.5); that is, assume Y ¼ KB(ln B1  ln B): ln

Y ¼ ln C  df f

Y ¼ Cedf f Y ¼ Cfedf

ð3:13Þ

Derive Formula (3.13), and make it zero; then the MSY and its corresponding fishing effort fMSY can be obtained: MSY ¼

C de

f MSY ¼ Additionally, obtain

Fig. 3.5 The yield-fishing effort curve (Fox model)

1 d

ð3:14Þ

124

X. Chen et al.

F MSY ¼ qf MSY ¼

CPUEMSY ¼

q d

ð3:15Þ

MSY C ¼ f MSY e

ð3:16Þ

BMSY is then obtained by deriving the model assumption Y ¼ KB(lnB1  ln B) BMSY ¼

B1 e

ð3:17Þ

In each of the aforementioned formulas, C and d are undetermined coefficients, and e is the base of the natural logarithm. The coefficients C and d are estimated using the regression relationship for the linear negative correlation of ln Y=f to f according to multiple years of fishery statistical data. Then, the MSY and fMSY equivalent of the fishery can be estimated.

3.1.3

Dynamic Pool Model

3.1.3.1

Beverton-Holt Model

This model is abbreviated as the B-H model. Its assumption, in addition to the fish species studied in the aforementioned conditions, is that individual growth must be at a uniform rate, that is, the exponential coefficient for the relationship between body length and body weight is b ¼ 3. Moreover, the von Bertalanffy growth equation can be used to fit individual growth patterns, and growth parameters have been obtained by estimation, including the values for l1, W1, k, and t0. Furthermore, the age at entry into the fishing grounds must be known or obtained in advance, that is, the age at recruitment (tr), the maximum age (tλ), the natural death coefficient M, and the present values required to judge the current status of the fishery—the fishing mortality coefficient (F) and the age at first capture (tc). The B-H model is in accordance with the generational process from recruitment to disappearance (that is, from tr to tc to tλ) (Fig. 3.6); derived from the changes in the numbers and weight of recruitment, growth, and death, its mathematical model is as follows: 1. Number of fish in the catch per unit recruitment  Y N =R ¼ FeMρ

1  eðFþM Þλ FþM

2. Weight of the catch per unit recruitment

 ð3:18Þ

3 Bioeconomic Model for a Single Species of Fish

125

Fig. 3.6 Schematic diagram of the quantitative changes in one generation of a fish population

Y W =R ¼ FW 1 eMρ

3
 X Qn enkðtc t0 Þ 1  eðFþMþnkÞλ F þ M þ nk n¼0

ð3:19Þ

3. Average number of fish in the catchable resource per unit recruitment N 0 =R ¼


 eMρ 1  eðFþM Þλ FþM

ð3:20Þ

4. Average weight of the catchable resource per unit recruitment B0 =R ¼ W 1 eMρ

3
 X Qn enkðtc t0 Þ 1  eðFþMþnkÞλ F þ M þ nk n¼0

ð3:21Þ

5. Average number of fish in the total resource per unit recruitment   1  eMρ eMρ 1  eðFþM Þλ N=R ¼ þ FþM M

ð3:22Þ

6. Average weight of the total resource per unit recruitment
¼ W1 B=R

3 X

" Qn e

n¼0

nkðt r t 0 Þ

ρ

ð1  eðMþnkÞ Þ eðMþnkÞρ ð1  eðFþMþnkÞλ Þ þ M þ nk F þ M þ nk

#

ð3:23Þ 7. Average body weight of the catch WY ¼

3
 W 1 eMρ X Qn enkðtc t0 Þ ðFþMþnk Þλ 1  e 1  eðFþM Þλ n¼0 F þ M þ nk

8. Average body length of the catch

ð3:24Þ

126

X. Chen et al.

LY ¼ l1

!   ðF þ M Þ 1  eðFþMþkλÞ kðtc t0 Þ 1 e ðF þ M þ k Þð1  eðFþM Þλ Þ

ð3:25Þ

9. Average age of the catch TY ¼

1 t  t λ eðFþM Þλ þ C FþM 1  eðFþM Þλ

ð3:26Þ

In each of the above formulas, ρ ¼ tc  tr, and λ ¼ tλ  tc; when n ¼ 0, Q0 ¼ 1; when n ¼ 1, Q1 ¼ 3; when n ¼ 2, Q2 ¼ 3; and when n ¼ 3, Q3 ¼ 1. The B-H model is composed of the aforementioned nine equations (i.e., Eqs. 3.19–3.26), which can estimate YW/R, YN/R, N 0 =R, B0 =R, N=R, B=R, W Y , LY , and T Y , respectively. These equations all contain two controllable variables affected by fishing activities. One is the fishing mortality coefficient F, which is proportional to the fishing effort f that is entered in; this value reflects the fishing intensity. The other one is the age at first capture tc, which is directly related to the choice of body length l0.5 that correlates with the minimum catchable length or body length at first capture lc as well as the mesh size (mesh selectivity) of the fishing gear used; the tc value and the F value not only affect the catch quality (WY, LY, and TY) but also generate a great effect on the number of fish and the weight of the catch. Through changes in these two control variables, the effect generated on the catch, the resource amount, and the catch quality can be investigated and analyzed, thereby enabling the selection and determination of the optimal values for F and tc from a biological perspective, the formulation of fishery regulations and the implementation of effective fishery management measures for the reasonable utilization of fishery resources, the provision of a scientific basis for achieving the sustainable development of fisheries, and the prediction of long-term effects generated after management measures are implemented on the catch, the resource amount, and the catch quality. The values of F and tc, which reflect the current status of a fishery, judge whether a resource is utilized reasonably, whether it has been overfished already, and how to regulate current fishery activities to close the gap between the present values and the optimal values. For example, how much should the fishing mortality coefficient F be reduced to be more appropriate, and how much does the age at first capture have to increase to be more appropriate. Usually, the aforementioned nine equations are calculated by transforming different F and tc values from small to large. Their results can be listed in nine tables and be drawn as two-dimensional change curves with a changing F under a certain condition of tc. For example, under a certain condition of F, i.e., the change curve for the catch per unit recruitment YW/R versus tc (Fig. 3.7), the peak value is the optimal MSY/R, and its corresponding tc value is the optimal tc value, that is, tc(MSY/R). For the same reason, the change curve for YW/R versus F can also be drawn (Fig. 3.8); the peak value of this curve is the optimal value (MSY/R), and its corresponding F value is the optimal F value, that is, F(MSY/R).

3 Bioeconomic Model for a Single Species of Fish

Catch per unit recruitment/g

Fig. 3.7 Catch as tc changes while F remains unchanged

127 100 80 60 40 20 0

0

1

2

3

4

5

6

Age at first capture/y 100 Catch per unit recruitment/g

Fig. 3.8 Catch as F changes while tc remains unchanged

80 60 40 20 0

0

1

2

3

4

5

6

7

8

Fishing mortality coefficient F

If the abscissa is the controllable variable F and the ordinate is the tc value, then a three-dimensional change curve for YW/R versus F and tc can be drawn. On a planar graph, this curve generates a catch contour (Fig. 3.9), and two maximum catch curves can be drawn from it. One is the optimal F line for a certain tc, which is the line connecting the horizontal line parallel to the abscissa, tangent to the catch contour; the other is the optimal tc connecting line for a certain F, which is the line connecting the vertical line parallel to the ordinate, tangent to the catch contour. These two lines are called the optimal catch curves, and the area between the two optimal catch curves is referred to as the optimal yield zone. This isoline can also be transformed into a three-dimensional stereogram. The highest point of the stereogram is the highest point of the catch. The boundary line for the cross-section of the stereogram is the isoline. From the figure, current fishery activities can be adjusted according to the distance between the position of the current point to the optimal yield zone by gradually regulating and controlling the current F and tc values, facilitating the gradual achievement of the optimal state for resource utilization so that the fishery can pursue sustainable development.

128

X. Chen et al.

Fig. 3.9 Contour map of catch per unit recruitment

Fig. 3.10 Contour map of the average body weight of the catch

In regard to other results estimated using this model, the same analysis, calculation, and drawing of two-dimensional or three-dimensional contour maps as those for YW/R can also be conducted. However, from the requirements of the sustainable development of fisheries, it is more important to analyze YW/R and use it as the basis because the objective of fishing activities is always to expect to reach the resource management goal of MSY. Of course, the analysis of catch quality (WY, LY, TY) (Fig. 3.10), particularly the analysis of the annual total average resource weight per unit recruitment B=R, is also very important, such as the percentage of the annual average total resource amount at the current point as a percentage of the original total average resource amount (using F ¼ 0 to calculate the original amount of resource) by analyzing its contour map and the extent that can be restored after adjusting the amount of resource.

3 Bioeconomic Model for a Single Species of Fish

3.1.3.2

129

Ricker Model

This model is also referred to as the exponential yield model. It divides the lifetime (one generation) of a resource group (or population) into many intervals (that is, several age groups). Moreover, during each period, the growth rate and the mortality rate are inconsistent, with great changes. In this model, it is assumed that body weight growth rate G and natural death coefficients M and F during each period are all constants and that the G, F, and M of each period are not necessarily equal. Then, the calculation can be carried out separately for each period through the number of fish in the resource, the resource weight, the number of fish in a catch, and the weight of the catch. Finally, the annual equilibrium catch or the annual catch per unit recruitment can be estimated just by adding the catch of each period. For the same reason, the annual total average resource amount or the annual total average resource amount per unit recruitment and the annual average amount of catchable resource or the annual average amount of catchable resource per unit recruitment can also be estimated. The main expressions for this model include: Yi ¼


 F i Bi eðGi Z i Þ  1 Gi  Z i

ð3:27Þ

Fi ðB  Bi Þ Gi  Z i iþ1

ð3:28Þ

Yi ¼

Y¼

n X

Yi

ð3:29Þ

i¼1

  Bi eðGi Z i Þ  1 Bi ¼ Gi  Z i

ð3:30Þ

Y i ¼ F i Bi

ð3:31Þ

B¼

n X

Bi

ð3:32Þ

i¼1

In each of the above formulas, Gi, Fi, and Zi are the instantaneous growth rate, fishing mortality coefficient, and total mortality coefficient of the i-th interval; Bi and Bi + 1 are the resource weights at the start of the i-th interval and the i + 1-th interval; Yi is the catch in the i-th interval; and Y is the total catch after all Yi values for all time intervals are added, starting from the age at first capture, that is, the annual total catch. Bi is the average resource weight of the i-th interval, B is the annual average resource amount after the Bi values for all time intervals are added. If the cumulative time intervals are added starting from the age at first capture, then the product is the

130

X. Chen et al.

annual average catchable resource weight; if they are added starting from the age at recruitment, then the product is the annual total average resource weight. In this model, like the B-H model, the age at first capture tc and the F value can also be changed. If the Fi of each interval is different, then the calculation can be carried out by changing the multiple. Similarly, the calculation results can be listed in a table or drawn as curves in order to find the optimal fishing utilization scheme. An evaluation can be conducted on the current state of fisheries and how to regulate fishery activities to facilitate the pursuit of sustainable development by fisheries. Analysis and estimation can be conducted regarding catch quality (average age of the catch and average body weight of the catch), the original resource amount, and the current resource amount as a percentage of the original resource amount, and so on.

3.2

Bioeconomic Model Based on a Single Static Fish Species

3.2.1

Schaefer-Based Bioeconomic Model

3.2.1.1

General Schaefer Bioeconomic Model

Assumed Conditions of the Gordon-Schaefer Economic Model Based on the Schaefer model, Gordon (1953) introduced the concepts of costs and benefits, established a bioeconomic model for the first time, and proposed the concept of economic overfishing. Gordon developed the biological model into a bioeconomic model; this model is also referred to as the Gordon-Schaefer model. This model takes into account the following assumed conditions: 1. The population is always in an equilibrium state. This way, the catch and the effort are basically able to reflect the changes in the entire fishery resource system (such as size in the resource amount); 2. In an equilibrium state, the fishing mortality coefficient F is proportional to the fishing effort f, and its proportional coefficient is the catchability coefficient q; that is, F ¼ qf

ð3:33Þ

3. The CPUE is a relative indicator of the amount of a population resource; that is, CPUE ¼

Y ¼ qB f

ð3:34Þ

4. The amount of a population resource is limited by the environmental carrying

3 Bioeconomic Model for a Single Species of Fish

131

capacity K. 5. The amount of a population resource will generate corresponding changes as the fishing effort f changes. 6. Fishing technology is constant. 7. The price and marginal or average cost are fixed and do not change as the fishing effort f changes. 8. The total cost (TC) is proportional to the fishing effort f; this way, the slope of the TC curve will determine the bioeconomic equilibrium (BE) point and the maximum economic yield (MEY).

Derivation of the Gordon-Schaefer Economic Model According to the total revenue and TC of sustainable yield, a net profit (revenue) function is established; its expression is as follows: π ¼ TR  TC ¼ pY  cf

ð3:35Þ

In the formula, π is profit; TR is total revenue; TC is total cost; p is price of the species for fishing, which is a constant; f is fishing effort; Y is catch or yield; and. c is cost per unit fishing effort, which is a constant. Costs include fixed costs, variable costs, and opportunity costs of labor and capital. In the cost structure, fixed costs are not affected by fishing operations (such as currency depreciation, administrative management, and insurance costs) and variable costs change with fishing production (such as fuel oil, fishing bait, food, and beverages). Opportunity costs refer to the net benefits obtained by producers in the next best economic activity, such as fisheries in other sea areas, capital input, or other employment opportunities. Substitute Formula (3.5) into Formula (3.35), and the profit function is: π ¼ ðpqB  cÞf

ð3:36Þ

The BE Point Just like the biological model, Gordon (1953) assumed that the long-term production function of fisheries reaches equilibrium, that is, when TR is equal to TC, π ¼ 0. At this point, there is no stimulation of economic benefits, fishing vessels will neither exit nor enter the fishery, and the yield is the equilibrium yield during open fishing. If the amount of resource also reaches a balance at this time, then the yield will reach

132

X. Chen et al.

the biological and economic equilibrium point, that is, the BE. By solving Eq. (3.35), the amount of resource BBE at the BE point can be obtained: BBE ¼

c qp

ð3:37Þ

Because fishing effort starts to decrease or even stop when the TC is greater than the total revenue (TR), the amount of resource B(t) is usually greater than 0. At the BE point, the TR is equal to the TC; that is, the average CPUE is the same as the per unit cost. Its corresponding fishing effort and yield are derived as follows: The average yield (AVY) per unit fishing effort is: AVE ¼

  Y qf ¼ qK 1  f r

ð3:38Þ

Then, the average yield value (AVE) per unit fishing effort is:   Y qf AVE ¼  p ¼ qKp 1  f r

ð3:39Þ

When AVE ¼ c, then the fishing effort corresponding to the BE point is: f BE ¼

  r c 1 q pqK

ð3:40Þ

The corresponding yield is: Y BE

  c c 1 ¼ qBf ¼ pq pqK

ð3:41Þ

Through this model, we can obtain the following judgments: (1) if the TC curve and the TR curve intersect at a level of fishing effort greater than that needed by the MSY, then overfishing in the economic sense will occur; and (2) when the fishing effort exceeds the level corresponding to the BE, the profit is 0. Because there is no further stimulation and incentive for entering the fishery, the fishery resource will not become extinct. However, whether a certain fishery resource will become extinct also depends on the intrinsic rate of increase in the fishery resource itself (Formula (3.4)). A situation in which the fishery resource becomes extinct will occur only when the amount of resource BBE corresponding to the BE exceeds the minimum viable population required by the population.

3 Bioeconomic Model for a Single Species of Fish

133

MEY In a controlled fishery, people often pursue profit maximization; that is, the marginal value of fishing effort (MVE) is equal to the cost (c) per unit fishing effort. At this point, fMEY is the level of fishing effort when the economic rent is at a maximum. Finding the derivative of f in Eq. (3.8), the marginal yield function of the fishing effort is:   dY 2qf ¼ qK 1  df r Then, the MVE is: MVE ¼

  dY 2qf  p ¼ pqK 1  df r

Since MVE ¼ c, the fishing effort fMEY corresponding to the MEY is: f MEY

  r c ¼ 1 2q pqK

ð3:42Þ

From this, we can see that fBE ¼ 2fMEY. The MEY is:      qf rK c c 1 1þ Y MEY ¼ qf MEY K 1  MEY ¼ 4 pqK pqK r

ð3:43Þ

In an open fishery with free entry to fishing, when f < fBE, the net revenue or economic rent of the fishery is positive; when TC ¼ TR, the net benefit or economic rent of the fishery is zero; and when the difference between the total revenue TR curve and the TC curve reaches a maximum, the MEY is obtained and its corresponding level of fishing effort is fMEY. It can be seen from Fig. 3.11 that the position of the TC curve determines the levels of MEY and BE and their changing trends. Here, we assume that the change in fishing effort is due to the entry of another fishing unit (such as an operating fishing vessel) rather than an increase in the fishing capacity of an existing operating fishing vessel. When the fishing effort increases, the average annual yield continues to decline; and when the resource is exhausted, its average yield is 0 (Fig. 3.11). It can be seen from Fig. 3.11 that the marginal yield (MY) decreases faster than the average yield (AY). At the MSY, the MY is 0.

134

X. Chen et al.

Fig. 3.11 Analysis of (a) sustainable revenue and cost with effort, and (b) sustainable yield with effort from the GordonSchaefer static model (Seijo et al. 1998)

Existing Flaws of the Gordon-Schaefer Model 1. In the Gordon-Schaefer bioeconomic model, all processes that affect the population number (including growth, death, and recruitment, among others) are included in the effort and catch variables: such an assumption is obviously somewhat unreasonable. 2. The catchability coefficient q is usually not a constant. First, the distribution of fish is not uniform, and it will differ because of the different clustering behaviors of fish. For example, pelagic fishes have strong clustering characteristics, and settlement species are randomly distributed, with poor mobility. In addition, in this model, issues such as the selectivity of catches generated due to differences in age, body length, and so on are not taken into account. It is very difficult to differentiate whether the fluctuations in population numbers are due to fishing or caused by the effects of natural environmental conditions. 3. The CPUE is usually not an indicator that effectively expresses the amount of resources, especially in connection with settlement species, as they are randomly distributed. Once caught, these species do not have the ability to redistribute. 4. In the Gordon-Schaefer model, the spatial distribution of the populations and their changes are usually ignored. In addition, the interactions between the biological processes of the fish themselves and interspecific relationships, as well as the

3 Bioeconomic Model for a Single Species of Fish

135

random fluctuations of the environment and in the amount of resources, are also not taken into account. 5. The interactions between ecologies and between technologies as well as the different distributions of fishing effort in the same time period are also not taken into account. 6. Advances and improvements in fishing technology and fishing capacity usually determine that the catchability coefficient q changes over time.

3.2.1.2

The Smith Model Based on Fleet Delay—A Fleet Dynamic Model

In the actual process of fishery production (fishery resource exploitation and utilization), the input of fishing effort cannot be carried out simultaneously. During free and open fishing, the fishers (investors) will arrange the number of operating fishing vessels and their levels and the time of entry into the fishery according to the advantages and disadvantages of fishery production benefits. In years with a good catch, fishers would swarm into the fishing industry in large numbers and construct new vessels or update fishing vessels or equipment. Therefore, there would be a delayed process in the course of investment. It is assumed that the long-term fishing effort is proportional to profit: df ¼ φπ ðt Þ dt

ð3:44Þ

In the formula, f is fishing effort; π(t) is the profit function; and. φ is a positive coefficient (fleet dynamic parameter) that represents the long-term dynamic changes in the fleet (short-term decisions are not taken into account). Substitute Formula (3.36) into Formula (3.44) to obtain the formula for the change in fishing effort: df ¼ φ½pqB  cf dt

ð3:45Þ

Therefore, the formula for the resource amount over time is: h i dB B ¼ rB 1   qBf dt K

ð3:46Þ

If π(t) > 0, fishing vessels will enter the fishery; otherwise, fishing vessels will exit the fishery. The parameter φ can be estimated according to the change and fluctuation situation of π(t); it is closely related to the cost arising from different levels of effort.

136

X. Chen et al.

Table 3.1 Parameters of the bioeconomic model (Seijo et al. 1998) Variable Intrinsic rate of increase r

Parameter value 0.36

Catchability coefficient q

0.0004

Environmental carrying capacity K Price of target species p

3, 500, 000 tons RMB 60/ton

Variable Unit cost c of fishing effort Amount of initial population resource B1 Fleet dynamic parameter φ

Parameter value RMB 30,000/ year 3500,000 tons 0.000005

Changes in fishing effort cannot be immediately reflected in the amount of a population resource and the expected catch. Because of this reason, the model is improved through a delay process (Seijo et al. 1998); that is, there is a delayed process between the positive or negative profit facing fishers and the fishers’ entry into or exit from fisheries. We can use the distribution delay DEL parameter in the Erlang probability density function to represent this process (Seijo et al. 1998); it represents the average delay time required for a fishing vessel to enter or exit a fishery once a change occurs in the net revenue. Therefore, the long-term dynamic change in fishing vessels can be represented using the following set of differential equations: dγt 1 g ðV ðt Þ  γt 1 ðt ÞÞ ¼ DELm m dt dγt 2 g ðγt ðt Þ  γt 2 ðt ÞÞ ¼ DELm 1 dt  dγt g g  γt g1 ðt Þ  γt g ðt Þ ¼ DELm dt

ð3:47Þ

In the formula, Vm is the input in the delay process (the number of fishing vessels for catching the target species); γtg(t) is the output in the delay process (the number of fishing vessels entering the fishery); γt1(t), γt2(t), . . ., γtg  1(t) are the instantaneous rates of delay; DELm is the expected time for a fishing vessel to enter the fishery; and. g is the order of the delay, which represents the Gamma probability density function parameter. Now assume that there is a pelagic fishery; see Table 3.1 for its parameters in terms of biology and economics. In addition, utilize the Gordon-Schaefer model to simulate the entire exploitation and utilization process of its fishery resource.

3 Bioeconomic Model for a Single Species of Fish

137

Fig. 3.12 The process of fishery resource exploitation and utilization in an open fishery with fleet dynamic parameters and without fleet parameters (Seijo et al. 1998). (a) Resource amount with effort. (b) Yield with effort. (c) Revenue and cost with effort

(a)

(b)

(c) Figure 3.12 represents the relationships between fishing effort and resource amount, yield, cost, and revenue utilizing the Gordon-Schaefer model in two situations: with fleet dynamic parameters and without fleet parameters. In a situation without fleet dynamic parameters, the relationships that changes in resource amount, yield, revenue, and cost have with fishing effort are the same as described above. The fishing effort corresponding to fBE is 578 fishing vessels, and the fishing effort corresponding to fMEY is 289 fishing vessels. In a situation with fleet dynamic parameters, the relationships that changes in resource amount, yield, revenue, and cost have with the fishing effort undergo a more complicated process, but the final BE point does not change; that is, the fishing effort fBE is 578 fishing vessels. Figure 3.13 represents the changing situation of various variables at different moments of the fishery resource exploitation and utilization process in a situation

138

X. Chen et al.

Fig. 3.13 Dynamic changes in (a) resource amount, (b) yield, (c) economic rent, and (d) fishing effort with fleet dynamic parameters (Seijo et al. 1998)

with fleet dynamic parameters. When the economic rent appears positive or negative, the operating fishing vessels will enter or exit the fishery; therefore, when the fishing effort exceeds 630 fishing vessels, the yield and net revenue will decrease. After 50 years of dynamic change in the fishery, the fishery reaches the BE point. At this

3 Bioeconomic Model for a Single Species of Fish

139

point, the resource amount is 1200 tons, which is approximately 1/3 of the amount of the initial resource, and the yield is slightly lower than the MSY (300 tons).

3.2.2

Age Structure-Based Bioeconomic Model

The age-structured model takes into account the factors that affect the resource amount over time, such as growth, recruitment, and death, and it assumes that the fish population is distributed alike in time and space. It mainly uses the BevertonHolt model as the basis to analyze the age structure of the fish population. The Beverton-Holt model and its corresponding variables all assume that the recruitment group is independent and that it is not affected by changes in fishing intensity. In addition, it is assumed that the fish are “dynamically clustered”; that is, one resource group is deemed to have a complete age composition and the same distribution, its fishing probability is the same within the distribution area of the population, and its growth and mortality parameters are unchanged in the entire sea area and are regarded as a constant throughout the whole life history. Seijo et al. (1998) constructed a dynamic bioeconomic model based on the age-structured model and carried out a dynamic analysis on population resource amount, yield, fishing effort, economic rent, and so on, and explained the effect generated by the age at first capture on resource amount, yield, economic rent, and fishing effort. In the age-structured dynamic model, there is selectivity in the size or age at first capture for the individuals in the catch at first capture. This controllable variable is an important means of fishery resource management. This variable cannot be processed in other models, such as the Gordon-Schaefer model. A linear discrete-time age-structured population model combined with economic parameters is utilized to construct a dynamic bioeconomic model and simulate the population resource levels and its potential net profits for the spring spawning population of herring jointly exploited by Norway, Iceland, and European Union countries under different management strategies. In the study, it was proposed that a system of open fishing will lead to the overexploitation of herring resources by all countries; its resource amount is in a cycle of resource collapse and slow recovery, leading to a rapid decrease in resource rent and trending toward a BE point. Therefore, international management strategies are urgently needed to allow herring resources to recover to a healthy level in a situation in which the economic interests of fishery exploitation enterprises are not negatively affected. Quaas et al. (2013) utilized the age-structured bioeconomic model to study the optimal management strategy for cod fish fisheries in the East Baltic Sea as well as to analyze fishery benefits under an optimal management strategy; Tahvonen et al. (2013) combined the economic parameters fishery ecology, catch, and operating costs and utilized this model to analyze the fishery resource amount and the catch level for Baltic Sea herring under different catch interest rates, conducting sensitivity analysis on the optimal management strategy. The population structure changes over time mainly in accordance with the dynamic change accounts established by the inflow and outflow of individuals in

140

X. Chen et al.

each age structure of the population. Recruitment of the number of individuals in a population is a dynamic process and must take into account the seasonal changes in the amount of recruitment and its distribution. In a dynamic model, changes in the number of individuals over time can be expressed using the following formula: dN i ¼ Si1 ðt ÞN i1 ðt Þ  Ai ðt ÞN i ðt Þ  Si ðt ÞN i ðt Þ dt

ð3:48Þ

In the formula, Ni(t) is the resource amount at age i in period t; Si is the survival rate of the group at age i; and Ai is total mortality. Then, Si  1(t) can be expressed as: Si1 ðt Þ ¼ 1  ½M i1 ðt Þ þ F i1 ðt Þ

ð3:49Þ

In the formula, Mi  1 (t) is natural mortality at age i  1 in period t; and. Fi  1(t) is fishing mortality at age i  1 in period t. They can be obtained from the corresponding instantaneous natural and fishing mortalities. Through simplification: dN i ¼ Si1 ðt ÞN i1 ðt Þ  N i ðt Þ dt

ð3:50Þ

Thus, a dynamic situation of population structure change can be expressed as: tZ þDT

N i ðt þ DTÞ ¼ N i ðt Þ þ

½Si1 ðτÞN i1 ðτÞ  N i ðτÞdτ

ð3:51Þ

t

N i ðt þ DTÞ ¼ N i ðt Þ þ DT½Si1 N i1 ðt Þ  N i ðtÞ

ð3:52Þ

The von Bertalanffy growth equation and the formula for the relationship between length-body weight (W ¼ a  Lb) can be used to estimate the resource amount for each age group: Bi ðt þ DTÞ ¼ N i ðt þ DTÞW i Then, the total resource amount B(t) is:

ð3:53Þ

3 Bioeconomic Model for a Single Species of Fish

141

Table 3.2 Dynamic modeling parameters with age structure as the basis (Seijo et al. 1998) Variable Maximum observed age

Parameter value 10 years old

Age at first sexual maturity

2 years old

Average fecundity Age at first capture tc

5, 000 eggs 2 years old

Sex ratio composition

0.5

Natural death coefficient Curve parameters of the V-B model t0 of the V-B model Asymptotic body length L1

0.2/month 0.5/year

Variable Asymptotic body weight W1 Selectivity parameters

0.0 100 mm

B ðt Þ ¼

Parameter value 200 g L50 ¼ 20 m; L75 ¼ 30 mm 0.1 km2 10 km2

Daily sweeping area Total distribution area of the group Maximum observed recruitment Average price Unit cost c of fishing effort

20,000,000

Fleet dynamic parameter

0.00005

X Bi ðt þ DTÞ

RMB 10,000/ton RMB 75,000/vessel

ð3:54Þ

i

The fishing mortality Fi and yield Yi(t) for each age group can be found by utilizing Formulas (3.33) and (3.4), respectively F i ðt Þ ¼

Y i ðt Þ ¼ qi f ð t Þ Bi ðt Þ

Y i ðt Þ ¼ qi Bi ðt Þf ðt Þ

ð3:55Þ

ð3:56Þ

Then, the TR is the price of the catch for each age group multiplied by the corresponding yield; that is TRðt Þ ¼

X

Y i ðt Þpi

ð3:57Þ

i

The TC(t) and the net revenue π(t) can be found by utilizing the Gordon-Schaefer model. We use the age at first capture tc and the fishing effort f as variables and utilize the age structure-based bioeconomic model to dynamically analyze and compare the population resource amount, yield, effort, and revenue. See Table 3.2 for the assumed parameters. Through computer simulation, different dynamic change diagrams can be drawn (see Figures 3.14a, b, c, d). In Fig. 3.14, the dynamic change situation for various parameters in the exploitation and utilization process of this resource under different age at first capture tc

142

X. Chen et al.

Fig. 3.14 Schematic diagram of the dynamic changes in the various parameters of the age structure-based bioeconomic model (Seijo et al. 1998). (a) resource amount in different tc situations. (b) yield in different tc situations. (c) economic rent in different tc situations. (d) fishing effort in different tc situations

(a) resource amount in different tc situations

(b) yield in different tc situations

Fishing effort (number of vessels)

(c) economic rent in different tc situations

Time (year) (d) fishing effort in different tc situations

3 Bioeconomic Model for a Single Species of Fish

143

values are displayed. In the 20th year after the fishery is exploited and utilized, its yield reaches the maximum value, and at this time, the resource amount is reduced to the minimum. At a lower tc value, the increase in the resource amount is more significant, but at this time, the output value and resource rent reach the minimum. In the 45th year after the fishery is exploited, the fishery reaches a long-term BE point (Fig. 3.14a–d). The maximum fishing effort is reached in the 20th year after the fishery is exploited. At this time, the number of fishing vessels is 200, the age at first capture is between 2 and 3 years old, and the resource rent gradually decreases. In a state of bioeconomic balance, the number of fishing vessels for the first catchable age from 1 year old to 4 years old is 67, 90, 115, and 142, respectively (Fig. 3.14d); that is, a relatively high first catchable age will support more numbers of fishing vessels. When tc ¼ 2 years old, the yield and rent are at the maximum. The higher the value of tc, the larger is the resource amount, and the smaller is its range of increase with time. In the long run, when tc ¼ 4 and in a situation of open fishing, the fishery can support more than two-fold the number of fishing vessels (tc ¼ 1 year old). The yield at the BE point also increases from 158 tons at tc ¼ 1 to 272 tons at tc ¼ 4 (Fig. 3.14b). In addition, the following conclusions can be inferred from Fig. 3.14. (1) Changes in the resource amount vary with different ages at first capture (tc values). The older the age at first capture, the larger is the resource stock, and the range of change in the resource amount is also relatively flat; therefore, increasing the age at first capture is beneficial to resource protection and sustainable use. (2) Different ages at first capture (tc values) have different changes in catch. From the perspective of exploitation and utilization processes, the earlier the age at first capture, the earlier the maximum catch appears, and the greater the range of decline in the catch. (3) The resource rents obtained by different ages at first capture (tc values) are also different. When tc ¼ 2, the maximum economic rent is the highest, and that at tc ¼ 4 is the lowest. (4) The fishing effort that different ages at first capture (tc values) can withstand is also different. The higher the tc value, the greater is the fishing effort it can withstand. Similar to the analysis of the aforementioned example, an age structure-based dynamic model can explain the effect generated by changes in the age at first capture on the resource amount, yield, rent, and fishing effort. In the process of fishery resource exploitation and utilization, when the individual size of the catch is optional, this important controllable variable will become an important means and method of fishery resource management; notably, this variable cannot be expressed and processed in the Gordon-Schaefer model. In summary, in the classic static bioeconomic model, two important conclusions can be inferred. First, open fishing systems (that is, unregulated fisheries) will lead to the overexploitation of fishery resources and ultimately lead to the disappearance of economic rent and tend toward the BE point. Second, the exploitation rate of the MEY always has to be lower than the exploitation rate of the MSY.

144

3.2.3

X. Chen et al.

Yield-Mortality-Based Bioeconomic Model

The traditional bioeconomic models are all based on the residual yield model and are constructed based on the classic Gordon economic model. The MSY calculated from the catch-fishing effort Schaefer model and the corresponding fishing effort may have flaws regarding fishery management. For example, as management reference points, MSY and fMSY may lead to the emergence of a decline in some fisheries. Moreover, MEY and fMEY are lower than MSY and fMSY in comparison and can be used as preventive management reference points. Therefore, it is very necessary to develop preventive bioeconomic models to assess the feasibility of management reference points (RPs) in preventive fishery management. Yield-mortality bioeconomic models (yield-mortality models and the Y-Z model) contain two main fishery system outputs: catch and instantaneous total mortality. The Y-Z model is based on the concept of maximum biological production (MBP) to provide a benchmark for selecting the MSY such as the corresponding mortalities (ZMBP and FMBP) that also reach the maximum when an exploited fishery obtains the maximum biological production yield (YMBP). Based on the concept of mortality to extend the yield model and the Fox model, the formula for transformation into effort and mortality is as follows: Y i ¼ ðZ i  M ÞB1 exp ½b0 ðZ i  M Þ

ð3:58Þ

In the formula, M is the instantaneous natural death coefficient; B1 is the maximum environmental capacity or the amount of initial population resource; b0 ¼ b/q; and q is the catchability coefficient. B1 and b0 in the formula can be obtained by estimation through a nonlinear regression method. From Eq. (3.58), one can obtain: Yi ¼ B1 exp ½b0 ðZ i  M Þ ðZ i  M Þ

ð3:59Þ

This model is suitable for different experimental values of natural mortality (M), and those M values that can improve the fitting standards to the maximum extent are selected. In addition, the initial value of M is given through estimation with the logistic Y-Z model. Once the optimal value of M is determined, its management parameters can be solved by conducting partial differentiation of the instantaneous fishing mortality coefficient F in Eq. (3.58) and making it equal to zero at the time of the MSY; then, one can obtain: dY i ¼ b0 F i B1 exp ðbF MSY Þ þ B1 exp ðbF MSY Þ ¼ 0 dF Find the fishing mortality at the time of the MSY:

ð3:60Þ

3 Bioeconomic Model for a Single Species of Fish

F MSY ¼ 

145

1 b0

ð3:61Þ

The MSY can be found through the following equation: MSY ¼ F MSY B1 exp ðb0 F MSY Þ

ð3:62Þ

Combine Eqs. (3.61) and (3.62), and solve; the MSY can be found: MSY ¼ F MSY B1 e1 ¼ 0:37F MSY B1

ð3:63Þ

The linear expression of Eq. (3.59) is:  ln

Yi Zi  M



¼ ð ln B1 þ b0 M Þ  b0 Z i

ð3:64Þ

According to the calculation methods of Caddy and Csirke (1983) as well as Pérez and Defeo (1996), the yield (YMBP) at MBP and the corresponding mortalities ZMBP and FMBP can be estimated. To find the reference point of bioeconomic management, its profit equation is constructed according to the exponential equation form of the Y-Z model, and the expression is as follows: π ¼ pFB1 exp ðb0 F Þ 

cF q

ð3:65Þ

In the formula, p is the average price of the catch; and. c is the cost per unit fishing effort. In Eq. (3.65), calculate the partial differential of the function variable fishing mortality F and make it equal to zero; the yield at the time of marginal profit as the fishing mortality changes can be found; then, one has: πmðF Þ ¼

 d F pFB1 exp ðb0 F Þ  c ¼0 dF q

c pB1 exp ðb0 F Þ  pFB1 exp ðb0 F Þ  ¼ 0 q

ð3:66Þ ð3:67Þ

One can find: F MEY ¼

½W ðe=pqB1 cÞ þ 1 b0

ð3:68Þ

In the formula, W is the internal characteristic a ¼ W exp (W ) of Eq. W[a], and a is defined as:

146

X. Chen et al.

a¼

e c pqB1

ð3:69Þ

In Eq. (3.64), once the parameters a and b0 are known and the natural mortality M is given, B1 can be estimated: B1 ¼ exp ða  b0 M Þ

ð3:70Þ

Given that p, q, and c are constants and B1 is known, FMEY and the MEY can be found: F MEY ¼

W þ 1 b0

MEY ¼ F MEY B1 exp ðb0 F MEY Þ

3.3

ð3:71Þ ð3:72Þ

Bioeconomic Model Based on a Dynamic Single Fish Species

Determining whether to catch fishery resources now or to wait until after the fish have grown is a very necessary decision and choice for fishery producers and competent fishery authorities. If the current fishing intensity is reduced, the resource amount in the next period will increase, and it will bring a proactive positive effect to future fishing production. In commercial fisheries, the basic principle of optimal allocation of fishery resources is the maximization of dynamic profits. Issues such as determining whether fishery resources are caught now to obtain income or become capital stock to obtain expected income in the future, how to invest in fishing effort, and how to optimize the allocation of fishery resources at different times are important research topics. Unlike depletable resources, the characteristics of fishery resources determine that a stock scale cannot be set in advance with a time path of optimal extraction quantity. Because the scale of the fish population is constantly changing, the net increase in a later stage is related to the original initial stock of fish resources and the rate of change. Therefore, from the perspective of optimal resource population management, the control of fishery resource extraction focuses on the optimal control of the population scale or resource stocks. Although the classic static bioeconomic model provides some important inferences for the optimal allocation of fishery resources, the static model only takes into account two extreme situations, namely, the discount rate of zero and infinity, and ignores the effect of the discount rate on the allocation of fishery resources (that is, time preference in the resource exploitation process). In this section, we introduce the discount rate to explain the dynamic behavior of the bioeconomy during the

3 Bioeconomic Model for a Single Species of Fish

147

fishery resource exploitation and utilization process. Through the analysis in this section, according to the different time preferences of society for the use of fishery resources (different discount rates), the optimal exploitation rate of fishery resources can be obtained. This exploitation rate will be greater than the exploitation rate at the MEY and lower than the exploitation rate at the MSY.

3.3.1

Discount Rate-Based General Bioeconomic Model for a Single Fish Species

As mentioned above, F(B) represents the natural growth rate of a certain fish population, and Y(t) is used to represent the harvesting rate (catch); therefore, dB ¼ FðBÞ  YðtÞ dt

ð3:73Þ

The catch is determined by the current population number B ¼ B(t) and fishing effort f ¼ f(t); therefore, Y ¼ Qð f , BÞ

ð3:74Þ

The above formula reflects the relationships that fishing effort f and population number B have with Y(t), and Q( f, B) is referred to as the production function. Now, assume Qð f , BÞ ¼ af α Bβ

ð3:75Þ

In the formula, a, α, and β are positive constants. Moreover, assuming α ¼ 1 and using G(B) to substitute for aBβ: Y ¼ Qð f , BÞ ¼ GðBÞf

ð3:76Þ

Suppose that the price of the fish p is a fixed constant, and C is the fishing cost per unit fishing effort; then, the net income function is: π ¼ pY  Cf ¼ pGðBÞf  Cf ¼ ðpGðBÞ  CÞf ¼ ðp  C=GðBÞÞ  GðBÞf ¼ ðp  C ðBÞÞ  Y In the formula, C(B) ¼ C/G(B). Therefore, the cost per unit catch (Cf/Y ) is equal to

148

X. Chen et al.

Cf =Y ¼

C Y C  ¼ ¼ CðBÞ Y GðBÞ GðBÞ

ð3:77Þ

Therefore, C(B) is in fact the cost per unit catch when the population level is B. According to fishery resource exploitation and utilization principles and optimal allocation and using the pursuit of a maximum value in profits as the goal: Z1 PV ¼

π ðB, f Þe

δt

0

Z1 dt ¼

eδt ½p  C ðBÞY ðt Þdt

ð3:78Þ

0

δ>0 In the formula, PV is the present value; δ is the discount rate constant, which is greater than zero; p is the unit price of the fish; B is the resource amount; Y(t) represents the catch in period t; and C(B) represents the cost per unit catch. The aforementioned objective function hopefully obtains the maximum harvesting rate Y ¼ Y(t). Under the condition that the fishery yield reaches a balance, B'¼dB/dt, one has: Y(t) ¼ F(B) – B', which is substituted into Formula (3.78) to obtain: Z1 PV ¼

eδt ½p  CðBÞ½FðBÞ  B0 dt

0

This integral can take the following open formula: Z

Φðt, B, B0 Þdt

Then, one has: ∂Φ d ∂Φ ¼ ∂B dt ∂B0 t On the left side of the equation, there is: ∂Φ ∂ δt ¼ fe ½p  CðBÞ½FðBÞ  Bg ∂B ∂B ¼ eδt fC0 ðBÞ½FðBÞ  B0 g þ F 0 ðBÞ½p  CðBÞg On the right side of the equation, there is:

ð3:79Þ

3 Bioeconomic Model for a Single Species of Fish

149

d ∂Φ d ∂ d ¼  feδt ½p  CðBÞ½FðBÞ  B0 g ¼ feδt ½p  CðBÞg dt ∂B0 dt ∂B0 dt ¼ eδt ½δ½p  CðBÞ þ C0 ðBÞB0 ; then, one has: C 0 ðBÞF ðBÞ þ ½p  CðBÞF 0 ðBÞ ¼ δ½p  C ðBÞ

δ ¼ F 0 ðBÞ 

C0 ðBÞF ðBÞ p  C ðBÞ

ð3:80Þ

ð3:81Þ

Formula (3.80) and Formula (3.81) are derived according to the optimal control theory and assuming that Eq. (3.81) has a unique solution; therefore, this formula contains the optimal solution B*. B* is referred to as the fish population number with the optimal balance. With its corresponding catch as the optimal sustainable catch Y*, one has Y* ¼ F(B*). The economic meaning of Eq. (3.81) is as follows: δ on the right side of the equation is the discount rate, the first term on the left side of the equation, F’(B*), is the marginal productivity of the resource assets, and the second term on the left side of the equation is the relative growth rate of the marginal value of the resource assets. When production costs do not depend on the population level, that is, C’(B) ¼ 0, then F’(B*) ¼ δ can be derived. This illustrates that when the marginal productivity of a resource is equal to a given discount rate δ, the population scale of the resource reaches the optimal level. When the production costs depend on the population level, then as the population level decreases, the fishing cost will increase. At this time, the value of the second term on the left side of Formula (3.74) is less than zero, and therefore, F’(B*) < δ; this illustrates that B* must be greater than the resource amount at the time corresponding to marginal productivity F’(B*) ¼ δ. Now, how the introduction of the time discount rate affects B* and Y* is discussed; Eq. (3.80) is written in the following form: d f½p  CðBÞF ðBÞg ¼ δ½p  C ðBÞ dB Let ρ ¼ ½p  C ðBÞF ðBÞ Notice the eqs. Y ¼ G(B) f, Y ¼ F(B), and C(B) ¼ C/G(B). Then, one has:

ð3:82Þ

150

X. Chen et al.

Fig. 3.15 Graphic illustration of the optimal population number B*

ρðBÞ ¼ pY  Cf

ð3:83Þ

The above formula shows that ρ(B) is the sustainable economic profit of a fishery when the population number is at B. Equation (3.82) can be written as follows: dρ ¼ δ½p  CðBÞ dB

ð3:84Þ

The two extreme situations of taking a discount rate of zero and a discount rate of infinity have been discussed earlier. The general situation in which the discount rate is at 0 < δ < 1 is discussed here. If the growth in fish population numbers is in line with the Schaefer model, then the left side of Formula (3.84) represents a decreasing function of the population number B, and its value decreases as the population number B increases. When its value is equal to zero, it is equivalent to the discount dρ rate being at zero, dB ¼ 0, ρ(B) reaches the maximum value, and the corresponding B value is represented by BMEY (Fig. 3.15). δ[p  c(B)] on the right side of Formula (3.84) is an increasing function of B. When its value is equal to zero, it is equivalent to the situation in which the discount rate is infinite, and the corresponding population number B is B1. The abscissa value at the intersection of the two curves is the optimal population number B* at a certain discount rate. From Fig. 3.15, it can be concluded that the optimal population number B* must be between B1 and BMEY (as in Fig. 3.15). Because the δ[p  c(B)] curve is affected by the value of the discount rate δ, it is in fact a cluster of curves passing through B1. Each curve intersects with the dρ/dB line; thus, the optimal population number B* for different discount rates can be obtained. According to the above discussion, the following conclusions can be inferred: 1. There is an optimal population number B* determined by Eq. (3.82) or an equivalent to Eq. (3.84); 2. The optimal population number B* is a function of the discount rate, economic parameters, and biological parameters;

3 Bioeconomic Model for a Single Species of Fish

151

3. The optimal population number B* is located between the population number BMEY (δ ¼ 0) when the profit is at the maximum and the population number B1 (δ ¼ 1) when the fishery profit is at 0. This value reflects the degree of reconciliation and compromise between current interests and long-term interests. 4. When the initial population level is B0 6¼ B, the optimal harvest strategy is “fastest approach” fishing to thereby make the population number B reach the optimal population number B* as quickly as possible.

3.3.2

Optimal Harvest Strategy and Optimal Population Number

3.3.2.1

Optimal Harvest Strategy

If the known initial population number is B0, then the optimal harvest strategy will be to simply adopt the harvesting rate Y(t) to urge the population level B ¼ B(t) to approach the optimal population number B* as quickly as possible. Noting that Ymax is the maximum allowable catch, one has: 8 > < Y max  Y ðt Þ ¼ F ðB Þ > : 0

ðB > B  Þ ðB ¼ B  Þ

ð3:85Þ



ðB < B Þ

Figure 3.16 can be used to represent the harvest strategy. In Fig. 3.16, if B0 is at point A, then the maximum harvesting rate can be used to decrease the population number B to B*. If B0 is at point B, decrease fishing effort or stop fishing, Y ¼ 0, until B increases to B* (as in Fig. 3.16). This simple control strategy may not be too realistic. When stopping fishing or reducing fishing effort, the yield will be 0 or fall sharply in the short run. Although such a decline can result in adequate compensation from future yields, this type of fishing cession and complete closure of a fishery will bring serious social problems, at least at present, and therefore, governments and society are both unlikely to accept this simple control strategy. Fig. 3.16 Optimal harvest strategy for fishery resources

Yield A Y=Ymax

Y*(t)=F(B*)

B0 B

Y=0

Time

152

3.3.2.2

X. Chen et al.

Optimal Population Number B*

Now the Schaefer model and the Beverton-Holt model are used as examples to discuss the solution to the optimal population number.

The Schaefer Model and its Example Analysis Theoretical Derivation Using the Schaefer model as an example, we have:
 B F ðBÞ ¼ rB 1  K

C ðB Þ ¼

c qB

Substitute these equations into Formula (3.82), and find the optimal equilibrium population number B*: 2

s ffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi ffi 2 K c δ c δ 8cδ B ¼ 4 þ1 þ þ  þ 4 pKq r pKq r pKrq 



ð3:86Þ

To simplify the expression, the following dimensionless terms are introduced: Z ¼

B B c δ ,Z ¼ 1 ¼ ,γ ¼ K 1 pKq r K

In the formula, Z* represents the ratio of the optimal population number to the environmental carrying capacity K, which is the optimal resource amount at equilibrium; Z1 is the ratio of the population number B1 in an open fishery when the profit is zero to the environmental carrying capacity, which is the resource amount at equilibrium during free entry to fishing operations; and. γ is the ratio of the discount rate to the intrinsic rate of increase in the population, which is referred to as the bioeconomic growth rate. Substitute all formulas described into Formula (3.86) to obtain Z ¼

 qffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi 1 1 þ Z 1  γ þ ð1 þ Z 1  γ Þ2 þ 8γZ 1 4

ð3:87Þ

3 Bioeconomic Model for a Single Species of Fish Table 3.3 Optimal resource amount Z* obtained by the functions Z1 and γ

γ Z1 0 0.10 0.25 0.50 1.0 2.0 3.0 5.0

0 0.50 0.45 0.38 0.25 0 0 0 0

153 0.1 0.55 0.51 0.45 0.37 0.25 0.16 0.14 0.12

0.3 0.65 0.62 0.59 0.54 0.47 0.40 0.37 0.34

0.5 0.75 0.73 0.71 0.68 0.64 0.59 0.57 0.54

0.7 0.85 0.84 0.83 0.81 0.79 0.77 0.75 0.73

0.9 0.95 0.95 0.94 0.94 0.94 0.93 0.92 0.91

Fig. 3.17 Different Z1 values to demonstrate that the optimal population level Z* is a function of the bioeconomic growth rate γ

It can be seen from Formula (3.87) that in a given fishery, the intrinsic rate of increase, the environmental carrying capacity, and the catchability coefficients of the fish are all known, and the discount rate will generate an important effect on the optimal population number of the fishery resources and the sustainable use of resources. Now, they are divided into three types for analysis: (a) A situation in which the discount rate is equal to zero (δ ¼ 0) and cost is equal to zero (C ¼ 0), Z* ¼ B*/K ¼ 1/2; that is, B* ¼ 1/2 K, which is the MSY; (b) A situation in which the discount rate is equal to zero (δ ¼ 0) and cost is a positive value (C > 0), Z* ¼ 1/2 + 1/2Z1 > 1/2; at this time, B* is located to the right of the MSY; and. (c) A situation in which the discount rate is a positive value (δ > 0) and the cost is zero (C ¼ 0), Z* ¼ 1/2  1/2Z1 < 1/2; at this time, B* is located to the left of the MSY. Table 3.3 shows the optimal resource amount represented using the function between Z1 and γ in aforementioned Formula (3.87) (Fig. 3.17).

154

X. Chen et al.

Example Analysis Japanese Spanish Mackerel (Scomberomorus niphonius) Fishery Using Japanese Spanish mackerel in the Yellow Sea and the Bohai Sea as an example, the optimal population number B* under different discount rate conditions and the corresponding sustainable yield Y* are discussed. The parameter values used have been listed in the previous section. The calculation results are provided in Table 3.4. The results show that both the optimal population number and the corresponding yield continuously decrease as the discount rate increases. When δ ¼ 0, B* ¼ BMEY ¼ 70, 081 tons, and the corresponding yield MEY ¼ 30, 779 tons; this is the management objective with maximum economic benefits, and the fishery is strictly controlled. When δ ¼ 1, B* ¼ B1 ¼ 29, 629 tons, and the corresponding yield is Y1 ¼ 26, 022 tons; this is an open fishery, the fishery profit is 0, and the employment opportunities are most numerous. When B* ¼ BMSY ¼ k/ 2 ¼ 55, 269, the corresponding yield is MSY ¼ 33,161 tons.

Antarctic Fin Whale (Balaenoptera physalus) Fishery Using the Antarctic fin whale as an example, the intrinsic rate of increase is r ¼ 0.08, the maximum environmental carrying capacity is K ¼ 400,000 fishes, and the price is p ¼ 5,000 RMB. The effect of the discount rate on the optimal resource amount and the optimal sustainable yield is now analyzed; see Table 3.5 for the results. The MSY of the Antarctic fin whale is 8000 fishes and the MEY is 7920 fishes. When the discount rate is 20%, the population number is greatly reduced, and the optimal sustainable yield is approximately 50% of the MSY. This illustrates that the discount rate has an obvious effect on the population number of Antarctic fin whales.

Table 3.4 Optimal population number B* and optimal sustainable yield Y* of Japanese Spanish mackerel in the Yellow Sea and the Bohai Sea Discount rate% 0 5 10 15 20 25 30 40 50 100 1

Optimal population number (B*) 70,081 68,770 67,497 66,261 65,063 63,940 62,783 60,656 58,678 59,854 29,629

Optimal sustainable yield (Y*) 30,780 31,138 31,538 31,850 32,120 32,352 32,548 32,846 33,035 32,950 26,022

3 Bioeconomic Model for a Single Species of Fish

155

Table 3.5 Optimal population number B* and optimal sustainable yield Y* of Antarctic fin whale Discount rate 0 1 3 5

Optimal population number 222,000 200,000 163,000 133,000

Optimal sustainable yield 7920 8000 7726 7094

Discount rate 10 15 20 1

Optimal population number 86,000 67,000 59,000 40,000

Optimal sustainable yield 5406 4485 4042 2880

Table 3.6 Optimal resource amount and optimal sustainable yield of Pacific halibut

Discount rate (%) 0 5 10 15 20 25

Optimal population number (thousand tons) 49.0 47.2 45.5 43.9 42.3 40.9

Optimal sustainable yield (thousand tons) 13.6 13.9 14.1 14.2 14.25 14.3

Discount rate (%) 30 40 50 100 1

Optimal population number (thousand tons) 39.6 37.0 34.9 27.9 17.5

Optimal sustainable yield (thousand tons) 14.3 14.2 14.0 12.9 9.7

Pacific Halibut (Hippoglossus stenolepis) Fishery Using the Pacific halibut as an example, the intrinsic rate of increase is r ¼ 0.71 and K ¼ 80.5 thousand tons. The effect of the discount rate on the optimal resource amount and optimal sustainable yield is analyzed (Table 3.6). According to the data analysis in Table 3.6, the MSY of the Pacific halibut is 14.29 thousand tons and the MEY is 13.6 thousand tons. When the discount rate is 25%, the optimal sustainable yield is equivalent to the MSY. This illustrates that the discount rate does not have much of an obvious effect on the population number of Pacific halibut. Through the aforementioned analysis, the following conclusions can be inferred: a population with a large intrinsic rate of increase is not sensitive to the discount rate, and a population with a small intrinsic rate of increase has a large sensitivity to the discount rate. In addition, some scholars such as Hannesson (1993) explain the discount rate as follows: the increase in the interest rate of current investment promotes an increase in the exploitation rate of fishery resources because investors need sufficient revenue to repay the interest on loans, or the revenue is deposited into the bank in exchange for higher interest. Therefore, if the current interest rate is high enough, resource owners will cease fishery resource exploitation and utilization. However, on the other hand, because a change in the interest rate will also affect the exploitation and utilization of fishery resources by resource users, if the interest rate increases, then the cost increases, thereby reducing further investments in fishery resources, and the optimal exploitation rate will be lower than that of the original.

156

X. Chen et al.

Thus, it can improve the utilization rate of fishery resources, which will partially offset the increase in the exploitation rate of fishery resources.

Beverton-Holt Model and its Example Analysis Theoretical Derivation When using the Beverton-Holt model for fishery resource assessment, there is often a limiting condition, i.e., limiting the fishing mortality coefficient F to being a constant. Now, assume that it is allowed to change with time; it is noted as F(t) and is constrained by 0  F(t)  Fmax. The upper bound of the constraint can be assumed to be finite or infinite according to need. The latter generates pulse type control. The population number composed of a single generation satisfies the following formula: dN=dt ¼ ½M þ F ðt Þ N

ð3:88Þ

N ð 0Þ ¼ R In the formula, N is the population number (counted by tails); R is recruitment; M is the natural death coefficient, which can be estimated from the fishery statistical data; and F(t) is the fishing mortality coefficient that changes with time and is the control variable. Now, introduce the discount rate δ; then, the objective function is: Z1 PV ¼

eδt ½pN ðt ÞW ðt Þ  cF ðt Þdt

ð3:89Þ

0

In the formula, PV is the present value; p is the price of the fish; c is the unit cost; and W(t) is the growth function (body weight). Due to the complex calculation process, one can refer to Clark (1976) for specifics. The calculation results are: N  ðt Þ ¼

δcp1 W ðt Þ½δ þ M  W  ðt Þ=W ðt Þ W  ðt Þ ¼ dW ðt Þ=dt

Use B*(t) ¼ N*(t)  W*(t), and note it as the singular biomass curve:

ð3:90Þ

3 Bioeconomic Model for a Single Species of Fish

157

Biomass

Fig. 3.18 Optimal biomass curve for a single generation

B0(t) B*(t)

p–1c

B0 0

tδ

t0

B ðt Þ ¼ δcp1 =½δ þ M  W  ðt Þ=W ðt Þ

Age t

ð3:91Þ

The singular trajectory B*(t) of Formula (3.91) has a vertical asymptote at t ¼ tδ, and the expression of its asymptote is (Fig. 3.18): W  ðt δ Þ=W ðt δ Þ ¼ M þ δ

ð3:92Þ

Because it is assumed that W*(t)/W(t) is a decreasing function of time, Eq. (3.85) has a unique solution tδ, and its value is 0  tδ  t0. Moreover, tδ decreases as δ increases. In Fig. 3.18, when t ¼ t0, the natural biomass curve reaches the maximum value. Since W*(t)/W(t) decreases progressively, the singular trajectory B*(t) given by Formula (3.91) is also a decreasing function of time. We notice that when the discount rate is taken as 0, there is: W  ðt 0 Þ=W ðt 0 Þ ¼ M Then, the optimal population number is: B ðt 0 Þ ¼ p1 c

ð3:93Þ

The optimal biomass is represented using a thick line in Fig. 3.18. The curves in Fig. 3.18 can be divided into three stages. In the first stage, harvest does not occur, F (t) ¼ 0, and B(t) changes as the natural biomass curve B0(t) changes. In the second stage, when tδ* > tδ, the natural biomass curve intersects with the singular trajectory B*(t), and a positive fishing mortality F*(t) (singularity control) is exerted at this time to make the natural biomass B(t) develop along the singular trajectory B*(t). In the

158

X. Chen et al.

Fig. 3.19 The situations when (a) δ ¼ 0 and (b) δ ¼ 1

third stage, when t ¼ t0, the fishing stops because when t > t0, pB(t) < c, the unit cost exceeds the fishing income, and fishing operations stop. Therefore, the optimal fishing mortality F(t) can be described as: 8 > < 0 F ðt Þ ¼ F  ðt Þ > : 0

0 < t < t δ

t δ  t  t 0 t > t0

It can be seen from Formula (3.91) that when δ ! 0, the vertical asymptote t ¼ tδ moves to the right and tends to t0, the singular curve B*(t) gradually becomes steep but always has to pass through the point (t0, p1c). In a limiting case, B*(t) transforms into the vertical line t ¼ t0 (see Figure 3.19a). In the case of zero discount, the optimal fishing strategy is pulse type control (if Fmax ¼ 1); that is, at a certain instant t0, harvest all profitable biomass. A high discount rate inevitably causes all generations to be rapidly exploited at an earlier stage. We can easily verify that Figure 3.19b properly describes the limiting case of δ ! 1. The optimal biomass curve B*(t) is along the zero revenue line pB ¼ c, and profit completely disappears. Normally, the general growth model is described using the von Bertalanffy equation; therefore:

3 Bioeconomic Model for a Single Species of Fish

159

W  ðt Þ=W ðt Þ ¼ 3kekðtt0Þ =1  ekðtt0 Þ 0

In the formula, k and t 00 are parameters in the von Bertalanffy growth equation. According to Formula (3.92), we have t δ ¼ t 00 þ

  1 3k ln 1 þ k Mþδ

ð3:94Þ

Example Analysis-Optimal Fishing Strategy for Penaeus chinensis Fisheries Penaeus chinensis is mainly distributed in the waters of the Yellow and Bohai seas and was once one of the pillars of the fishing industry in these seas. In 1979, Penaeus chinensis catch in the Yellow and Bohai seas reached a maximum of 4.27  104 tons. However, due to overfishing, there was a sharp decline in this resource. Although release and proliferation measures have been adopted since 1984, the yield has continued to present a decreasing trend. Since 1991, the annual yield in Penaeus chinensis has always been less than 10,000 tons, wherein the lowest was in 1995 with only 0.46  104 tons. The survey results in the late 1990s showed that the biomass of Penaeus chinensis in the overwintering grounds in the Yellow Sea was below 500 tons. The reasons for the decline in Penaeus chinensis resources have been comprehensively analyzed. On the one hand, overfishing parent shrimp has led to an obvious deficiency in the number of parent shrimp that enters the spawning grounds; on the other hand, the environmental deterioration of the spawning grounds in the nearshore of the Bohai Sea has affected the survival and growth of the larvae. Now, using Penaeus chinensis fisheries as an example, an analysis is carried out on an optimal fishing strategy. The natural mortality of Penaeus chinensis is M ¼ 0.019, the growth parameters are t 00 ¼ 3.2 and k ¼ 0.087, the time unit is 5 days of age, and May 25 is set as age 0 for Penaeus chinensis. Because the competent fishery authorities have stipulated that the open fishing period for shrimp during the autumn flood in the Bohai Sea is September 15, the t value is equivalent to (September 15 to May 25)/5 ¼ 22 in age, that is, the tδ (corresponding to the age of the discount rate) in Formula (3.94); therefore, tδ ¼ 22. The aforementioned tδ, M, t 00 , and K values can be obtained pending calculation according to Formula (3.94), and the discount rate is δ ¼ 0.044. Similarly, by utilizing Formula (3.94), the age value tδ ¼ 0 when the discount rate is 0 can be found: t δ ¼ 3:2 þ


 1 3  0:087 ln 1 þ ¼ 34:1 0:087 0:019 þ 0

The optimal biomass curve for Penaeus chinensis is drawn according to Formula (3.94), and the natural biomass curve for Penaeus chinensis is drawn according to

160

X. Chen et al.

Fig. 3.20 Optimal biomass curve for Penaeus chinensis in the Bohai Sea (Wang et al. 1995). M ¼ 0.019, δ ¼ 0.044, Y ¼ 30,000 tons, c ¼ CNY 90, 000

the formula B(t) ¼ N0e-MtW(t) (Fig. 3.20). From Fig. 3.20, the biomass curve for Penaeus chinensis is composed of three stages: In the first stage, t is between t ¼ 3.2 and t ¼ 22 for age, which is approximately equivalent to June 10 to September 15. No fishing is carried out in this stage, F ¼ 0; the optimal biomass curve and the natural biomass curve are the same. In the second stage, when 22 < t < tδ ¼ 0 ¼ 34.1 for age, which is equivalent to September 15 to November 15, and t > tδ ¼ 0.044 ¼ 22 for age, the optimal biomass curve intersects with the natural biomass curve, and the point of intersection is t ¼ 22.76. Therefore, F*(t) begins to be exerted to drive the natural biomass to decrease along B*(t). When t ¼ tmax ¼ 34.1, the fishery profit is equal to 0. In the third stage, when t > 34.1, pB(t) < c. Since the output value is less than the cost, loss would occur in the fishery, and operations would cease. The declining features of the optimal biomass curve are the same as those of the natural biomass curve. Therefore, the optimal fishing mortality coefficient of Penaeus chinensis fisheries during the autumn flood in the Bohai Sea can be described as follows: 8 0 < t < 22 for age ðJune 10 to September 15Þ > < 0  F ðt Þ ¼ F ðt Þ 22  t  34:1 for age ðSeptember 15 to November 15Þ > : t > 34:1 in age 0 In singularity control, F*(t) is a variable. The F*(t) estimations for Penaeus chinensis fisheries during the autumn flood in the Bohai Sea are listed in Table 3.7. From Table 3.7, the optimal control is greater in the initial stage of F and then gradually decreases afterwards until t ¼ 34.1, when F ! 0. The aforementioned result is as follows: in the 60 days of operation (September 15 to November 15), the total fishing mortality coefficient is 2.133 (Wang et al. 1995). These two points basically conform with the fishery situation in the 1980s. The discount rate reflects the quantitative relationship between long-term interests and short-term interests in fishery resource exploitation. For a population

3 Bioeconomic Model for a Single Species of Fish Table 3.7 Estimated F*(t) values for Penaeus chinensis fisheries in the Bohai Sea (cited from Wang et al. 1995)

t 22.76 23.00 24.00 25.00 26.00 27.00 28.00 29.00 30.00 31.00 32.00 33.00 34.00

161 B*(t) 27.32 21.12 11.09 7.80 6.18 5.21 4.57 4.12 3.78 3.52 3.31 3.15 3.01

F*(t) 0.25 0.62 0.33 0.21 0.15 0.08 0.07 0.05 0.04 0.03 0.02

Table 3.8 Effect of discount rate on the open fishing period of Penaeus chinensis fisheries in the Bohai Sea during the autumn flood and the body length of the individuals at first capture (cited from Wang et al. 1995) Discount rate δ 0 0.009 0.027 0.044 0.060 0.130 0.300 1

tδ 34.1 30 25 22 20 15 10 3.2

Time (open fishing period) November 15 October 25 September 30 September 15 September 5 August 10 July 15 June 10

Body length (mm) Ltδ 177 172 162 154 146 122 85 !0

composed of a single generation, the value taken by the discount rate actually determines the date of the open fishing period and the size of the individuals at first capture. From the relationship given by Formula (3.94), δ determines tδ, and Ltδ is estimated from tδ according to a general growth form. Table 3.8 contains data regarding the discount rate δ, tδ, and Ltδ for Chinese shrimp fisheries in the Bohai Sea during the autumn flood. From Table 3.8, the open fishing period is September 15, and the size of the individuals at first capture is 154 mm. If the discount rate takes on a larger value, then the open fishing period will shift to an earlier date, and the body length (Ltδ) will become smaller; if the discount rate takes on a smaller value, then the open fishing period is pushed back, and body length (Ltδ) becomes larger (Wang et al. 1995). We now discuss two extreme cases for the Penaeus chinensis fishery discount rate: δ ¼ 0 and δ ! 1. According to Formula (3.94), when δ ¼ 0, we have

162

X. Chen et al.

t max ¼ t 00 þ

  1 3k ln 1 þ k M

ð3:95Þ

tmax is the time at the extreme value position of the natural biomass curve. Therefore, one has tδ ¼ 0 ¼ tmax ¼ 34.1 in age, and 34.1 in age is equivalent to November 15. The age of zero discount rate is the same as the age when the extreme value (maximum biomass) occurs on the natural biomass curve. When δ ! 0, the vertical asymptote t ¼ tδ moves to the right and approaches tmax, the optimal biomass curve B*(t) gradually becomes steep, but it always has to pass through the point (tmax, c/p). In the case of an extreme limit, it becomes the vertical line t ¼ tmax, like line A in Fig. 3.20. In this situation, the optimal fishing strategy will be pulse control. According to Formula (3.94), when δ ! 1, tδ ¼ 3.2, and B(t) ! 0. It is inconceivable for the population of Penaeus chinensis composed of a single generation to take an infinitely great discount rate. A high discount rate will lead to the exploitation of the Penaeus chinensis population in the juvenile shrimp stage, and yield and fishery profit will decrease concurrently. The current discount rate for the Penaeus chinensis fishery is δ ¼ 0.044. If it is increased to 0.06, the increase is approximately 45%; that is, tδ ¼ 20. Additionally, the open fishing period will be shifted earlier to September 5 (Table 3.8). Since the B*(t) curve still intersects with the c/p line at tδ ¼ 0, the operating date increases to 70 days from the original 60 days. However, the generation yield decreases by 5%, and the economic benefits also decrease. If the discount rate is decreased to 0.027, the decrease is approximately 40%; that is, tδ ¼ 25. Additionally, the open fishing period will be delayed to the end of September, the operating period decreases to 45 days from the original 60 days, and the generation yield increases by approximately 1% (Table 3.8). However, singular control requires a larger fishing mortality coefficient in the beginning stage, which will lead to the reallocation of resources and may generate serious social problems. Therefore, it is reasonable for Penaeus chinensis fisheries in the Bohai Sea during the autumn flood to adopt a low discount rate and corresponding open fishing period.

3.3.3

Approximation Method for Determining the Discount Rate

During fishery decision-making, the decision-makers often choose an appropriate discount rate, i.e., a numerical value currently acceptable to society. This value reflects both short-term interests as well as long-term interests, and it comprehensively takes into account long-term and short-term interests. For example, if the discount rate can reflect 70% of long-term interests, then what should be the value of the discount rate? Ye and Huang (1990) described an approximation method for this problem. Rewrite formula (3.75):

3 Bioeconomic Model for a Single Species of Fish

163

Fig. 3.21 Graphic explanation of B0 and B* for the Japanese Spanish mackerel population in the Yellow Sea and the Bohai Sea

½p  cðBÞF 0 ðBÞ  c0 ðBÞF ðBÞ ¼ δ½p  cðBÞ

ð3:96Þ

If the growth of a fish species conforms with F(B) ¼ rB(1  B/K ), then c(B) ¼ c/ qB. In the formula, p is the price of the fish; c is the unit cost; B is the population number; r is the intrinsic rate of increase; K is the environmental carrying capacity; and q is the catchability coefficient. We have previously discussed that the optimal population number B* can be determined by Formula (3.96). Another method is to solve the derivative of Formula (3.96) and let the left side of Formula (3.96) be equal to Bl and the right side be equal to B2. The right side of Formula (3.96) is an increasing function of the population number B, which is a cluster of curves passing through δ ¼ 0. The left side is a decreasing function of the population number B; therefore, the two must intersect, and the point of intersection must satisfy Formula (3.96). It can be seen from Fig. 3.21 that the abscissa value B* changes with the discount rate δ. Figure 3.21 is a graphic example of Japanese Spanish mackerel in the Yellow Sea and the Bohai Sea drawn according to Formula (3.96). From Fig. 3.21, one can intuitively see the effect of the discount rate (δ) on the optimal population number B* and can conclude that the optimal population number is located at B0 ¼ (k + B1)/2  B*  B1 ¼ c/pq. Moreover, as δ increases from 0 to 1, B* decreases from BMEY to B1. BMEY (equivalent to a discount rate of 0) and B1 (equivalent to taking a discount rate of 1) are both related to the price of the fish; at a small cost to price ratio, the BMEY and B1 will both decrease, and the optimal population number B* will also change. If the cost to price ratio is set, then B* is only a function of the discount rate (δ). See Fig. 3.22 for the relationship between the two.

164

X. Chen et al.

Fig. 3.22 Relationship between B* and δ for the Japanese Spanish mackerel population in the Yellow Sea and the Bohai Sea

Now note that D is the proportion of current interests, and its value range is [0, 1]; then, the required optimal population number BD* is given by the formula below: BD ¼ B0  ðB0  B1 ÞD

ð3:97Þ

Note that: B0 ¼ ðK þ c=pqÞ=2andB1 ¼ c=pq We have: BD ¼

K c ð1  DÞ þ ð1 þ DÞ 2 2pq

ð3:98Þ

According to Formula (3.98), when D ¼ 0, the current interests of the fishery are not taken into account, which is equivalent to taking 0 for the discount rate; therefore: BMEY ¼ BMEY ¼ ðK þ c=pqÞ=2

ð3:99Þ

When D ¼ 1, the current interests of the fishery are mainly considered, which is equivalent to taking 1 for the discount rate; therefore:

3 Bioeconomic Model for a Single Species of Fish Table 3.9 Estimated discount rate values for the Japanese Spanish mackerel fisheries in the Yellow Sea and the Bohai Sea

165 B* 70,084 66,038 61,993 54,947 55,269 53,902 49,856 45,811 41,765 37,720 33,674 29,629

D 0 0.1 0.20 0.30 0.36 0.40 0.50 0.60 0.70 0.80 0.90 1.00

δ 0 0.159 0.336 0.538 0.693 0.780 1.082 1.492 2.116 3.276 6.582 1

Reference values: k ¼ 110,538 tons; r ¼ 1.2; q ¼ 1.534  104 Table 3.10 Tradeoff of long-term interests and short-term interests for the Japanese Spanish mackerel fisheries in the Yellow Sea and the Bohai Sea D 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 0.366 (at MSY)

Sustainable yield (ton) 30,776 31,901 32,660 33,082 33,193 32,819 32,189 31,180 29,817 28,008 26,204 33,161

Fishery profit (million in RMB) 19.54 19.35 18.76 17.78 16.41 14.63 12.50 9.96 7.03 3.71 0 16.92

B1 ¼ B1 ¼ c=pq

Fishing effort 2862.5 3148.9 3435.1 3721.4 4007.6 4294.0 4580.2 4866.5 5152.8 5439.1 5725.3 3911.1

ð3:100Þ

According to this, the BD* at any level to which long-term interests and short-term interests are compromised can be estimated according to Formula (3.98), and the corresponding discount rate can also be calculated according to Formula (3.86). Table 3.9 presents the discount rate values for the Japanese Spanish mackerel population in the Yellow Sea and the Bohai Sea at different D-value levels calculated according to Formula (3.98) and Formula (3.86). The population number, 55,269 tons, at the time of the MSY is also listed, as well as the corresponding discount rate of 0.693 and D value of 0.366. At the time of the MSY, the long-term interests account for less than 40% of the current interest. Table 3.10 provides the optimal allocation of fishery resources at different D values, which can be used as a reference for fishery decision-making.

166

X. Chen et al.

Through the aforementioned analysis, we know that D ¼ 0 is equivalent to having the discount rate δ ¼ 0, with no consideration for the current interests of the fishery but with priority given to long-term interests. The result is the best economic benefits for the fishery, moderate yield, and the least fishing effort. D ¼ 1 is equivalent to having the discount rate δ ! 1, with no consideration for long-term interests but with priority given to current interests. The result is the greatest fishing effort, that is, the most numerous employment opportunities, the lowest yield, and a fishery profit equal to 0. The analysis also illustrates that as the current interests gradually increase, D increases from 0 to 1, the fishing effort increases continuously, and the fishery profit decreases continuously. To be clear, during fishery decision-making, if one keeps an eye on long-term interests, that is, using fishery profit as the goal, a smaller D value has to be taken and the employment opportunities will decrease accordingly; if current interests are taken into account, that is, using employment opportunities as the goal, a larger D value can be taken, more fishing vessels can be arranged, and profit will decrease accordingly.

3.4

A Bioeconomic Model for a Single Fish Species that Takes into Account the Market

In the aforementioned fishery resource allocation models, we assumed that the catch does not affect the price of the catch, but in an actual situation, the price of the catch changes with changes in the market supply, differences in variety, quality, and so on. According to the general law of the market, if there is an oversupply of a certain catch, then its price would decrease. Therefore, a substantial change in the quantity of the catch will inevitably affect its price and will thereby affect the exploitation and utilization of the fishery resource itself. In this section, the effect of the price of fish on the exploitation of a fishery resource and its allocation is thus discussed by analyzing the relationship between fishery supply and demand.

3.4.1

General Concept of Supply and Demand

Demand refers to the total quantity Q of a certain commodity purchased by consumers at each price level P within a certain unit of time, and the demand curve refers to the curve drawn with price P as the ordinate and Q as the abscissa. If the price of the commodity increases, then it will cause demand to decrease. Therefore, the demand curve decreases. Set P ¼ P(Q) as the equation for the demand curve; then, one has the following expression:

3 Bioeconomic Model for a Single Species of Fish Fig. 3.23 Equilibrium state of supply and demand

167

P

P=S(Q)

Demand curve Supply curve P* P=P(Q)

Q*

e ¼ pðQÞ=Qp0 ðQÞ

Q

ð3:101Þ

e is referred to as demand elasticity. If the price P changes very little, then a small △P can be written as: e

ΔQ=Q Δp=p

ð3:102Þ

It can be seen from Formula (3.102) that demand elasticity represents the percentage of the increase in price and the corresponding product demand decrease in percentage. For example, the demand elasticity of a certain commodity is 2.5; a 1% rise (or fall) in the price of this commodity will lead to a decrease (or increase) in sales volume by 2.5%. If e > 1, the demand is highly elastic. That is, a small change in price will cause a greater change in the level of demand. There is a highly elastic demand curve for those commodities for which substitutes are easily obtained because as the price increases, consumers can switch to buying substitute products. If e < 1, the demand is inelastic. That is, the effect of price changes on demand is very small. Commodities that are necessities in life, especially those commodities with a small proportion of consumption expenditure, such as sugar and meat, are all inelastic. For a certain product, the supply curve determines the quantity Q of the commodity that the manufacturer can provide at different prices P for the commodity. If P ¼ S(Q) is the equation for the supply curve, then the supply elasticity is: e ¼ SðQÞ=QS0 ðQÞ

ð3:103Þ

When the supply price is equal to the demand price, a balance appears (as in Fig. 3.23). In Fig. 3.23, P* and Q* are the price and product quantity in an equilibrium state. If the number of products Q produced is greater than the number Q* at equilibrium, one has Q > Q*; then, the yield decreases toward Q* and the price increases toward P*. When Q < Q*, the reverse occurs.

168

3.4.2

X. Chen et al.

Equilibrium Supply Curve for an Open Fishery

According to the definition of a supply curve, the equation for an equilibrium supply curve for an open fishery is considered. Rewrite the Schaefer model as follows: dB ¼ rK ð1  B=K Þ  qfB dt The economic profit of the fishery is given by the following formula: π ¼ ðpBq  cÞf The BE of an open fishery is determined by the below equations of state. Y ¼ rBð1  B=K Þ

ð3:104Þ

pqB  c ¼ 0

ð3:105Þ

The amount of resource at the bioeconomic equilibrium BBE can be obtained from Formula (3.105), BBE ¼ c/pq. By substituting Formula (3.105) into Formula (3.104), the sustainable yield Y can be obtained by using the price p to represent the equation for the equilibrium supply curve of the fishery: Y¼

rcð1  c=pKqÞ pq

ð3:106Þ

The curve drawn according to Formula (3.106) is the equilibrium supply curve for an open fishery.

Fig. 3.24 Equilibrium supply curve for the Japanese Spanish mackerel fisheries in the Yellow Sea and the Bohai Sea

p

7 000 6 000 5 000 4 000 3 000 2 000 1 000 c qk

PMSY =

2c qk MSY

0

1×104

2×104

3×104 Y

3 Bioeconomic Model for a Single Species of Fish

169

Figure 3.24 is the equilibrium supply curve for the Japanese Spanish mackerel fisheries in the Yellow Sea and the Bohai Sea (Ye and Huang 1990). The feature of this curve is that when the price of the fish is p < c/Kq, i.e., approximately CNY 295/ton in this example, the sustainable yield is Y ¼ 0. When the price of the fish increases to p ¼ 2c/Kq [take the derivative of Formula (3.106), and obtain it by making the derivative equal to 0], the yield is at the maximum; that is, it reaches the MSY. When p > 2c/Kq, the sustainable yield decreases, the curve bends backward, and biological overfishing appears. When p ! 1, the yield tends to zero. The fishery supply curve intuitively illustrates the effect of the price of the fish on the catch. Figure 3.24 illustrates the following facts with a simple graphic method: when the price of the fish is too low, the fishery resource is underutilized; when the price is sufficiently high or when the corresponding cost to price ratio is sufficiently low, biological overfishing will appear; the higher the price is of the fish, the lower the cost to price ratio, and the more severe the overfishing. This is exactly the situation for China’s offshore fishery resources, and the prospects for the exploitation and utilization of fishery resources are concerning. Now, the critical depensation-type fishery supply curve is discussed. The sustainable yield Y has the following form: Y ¼ rðB=B  1Þð1  B=KÞ

ð3:107Þ

In the formula, B is referred to as the minimum viable number for the population. The state of BE is determined by the following equations of state: Y ¼ rðB=B  1Þð1  B=KÞ pqB  c ¼ 0

ð3:108Þ

   rc c c Y¼ 1 1 qp pqB pqK

ð3:109Þ

Therefore, we have:

Now, we arbitrarily set a B value; let B ¼ 8000, and the parameter values for the Japanese Spanish mackerel in the Yellow Sea and the Bohai Sea are cited for the other parameters. A figure is drawn (see Fig. 3.25) according to Formula (3.109); this is the critical depensation-type supply curve. The basic features of this curve conform with the compensation-type supply curve in Fig. 3.24, but there are differences. According to Formula (3.109): When pl ¼ C/pK, Y1 ¼ 0. When p2 ¼ C/qB, Y2 ¼ 0. Since B < K, p2 > pl. Thus, the following is the first important difference between the critical depensation-type supply curve and the compensation-type supply curve: when the price of the fish increases more greatly, the population may become extinct under the critical depensation situation; and in the case of compensation, when

170

X. Chen et al.

Fig. 3.25 Supply curve for an open fishery (critical depensation type)

P

4 000

P2 =

2c qk

3 000 2 000

Y =r(B/B–1)(1–B/k)

2 000 1 000 c P1= qk 0

PMSY =

2c q(k+B) 10 000

MSY 20 000 30 000

Y

p ! 1, Y ¼ 0; however, because the cost of fishing will eventually exceed the price of the fish, population extinction is unlikely to occur. Another important difference is that the price corresponding to the MSY is different. For the compensation type, pMSY ¼ 2C/pK, but for the critical depensation type, pMSY ¼ 2C/q(K + B). This value can be similarly derived from Formula (3.109) and be obtained by making dY/ dp ¼ 0. The specific difference between the two depends on the size of k, which is approximately 7.3% between the two in this example.

3.4.3

Bioeconomic Instability

The supply curve for fisheries specifies a sustainable yield Y for a given constant price p. If an open fishery has a finite elastic demand curve intersecting with it (as in Fig. 3.26), then an equilibrium state is established at the point of intersection M. For fishers, profit is generated at any position on the supply curve below the equilibrium point M. This will cause an increase in fishing effort, forcing the system to tend toward the equilibrium state M. Although the BE at M fails to generate economic profit, it can lead to certain positive economic benefits. Due to demand elasticity, there is an amount of consumer surplus (Fig. 3.26). For example, when biological overfishing becomes more severe, the bending backward of the supply curve indicates that demand is increasing, resulting in a reduction in the amount of consumer surplus. Therefore, failure to control the exploitation of public fisheries in a case where the demand is not infinitely elastic will damage potential economic benefits more greatly. Additionally, fisheries with fishing operations at the point of BE still have some positive social benefits for society. One such benefit is the catch; its cost includes wages, which can maintain a considerable number of employed persons, but there is no capital accumulation. Because the fishery supply curve bends backward, the intersections with the demand curve may generate multiple equilibrium points (Fig. 3.27). The demand

3 Bioeconomic Model for a Single Species of Fish Fig. 3.26 Supply and demand of an open fishery. The shaded areas indicate the amount of consumer surplus

171

P S

M2 D2

M1 0

MSY

D1 Y

Fig. 3.27 Instability of supply and demand in an open fishery (Schaefer model)

curve and the equilibrium supply curve intersect at M1, M2, and M3. It can be seen from Fig. 3.27 that the middle point M2 is an unstable equilibrium point, and it will leave this position and tend to M1 or M3. If the initial position is below M2, it will tend to M1 and be balanced at M1. If the initial position is above M2, it will tend to M3 and be balanced at M3. If change occurs in market demand, for example, if the demand curve moves downward, it is inevitable that the harvest amount will be high and the price low; if the demand curve moves upward, the result could be severe overfishing, a reduction in sustainable yield, and a high price. We have introduced in this book that catastrophic results may be triggered due to the critical depensation effect. The results caused by changes in demand are similar. An unstable equilibrium point separates two stable equilibrium points, a sudden catastrophic change is caused

172

X. Chen et al.

by small changes in certain parameters, and at the same time, there is a lag effect that prevents it from returning to the original equilibrium position; these are the basic properties of a two-dimensional dynamic system that has multiple equilibrium states. Theory and practice both have illustrated that due to changes in supply and demand, fisheries are made to stay in a state of long-term instability. When demand lacks elasticity, bioeconomic instability is most prone to appear.

3.4.4

Discount Rate-Based Supply Curve

Now, consider controlled fisheries, that is, the supply curve for optimally controlled fisheries. The supply curves for optimally controlled fisheries and open fisheries have many of the same properties. Assuming that the demand is infinitely elastic, that is, the price of the fish p is a constant, the optimal population number B* based on the Schaefer model is rewritten as follows: 2 ffi3   sffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi  2 K c δ c δ 8cδ 5 B ¼ 4 þ1 þ þ þ 4 pKq r pKq r pKrq

ð3:110Þ

Note that Y ¼ rB(1  B/K). Eliminate B*, and write the optimal sustainable yield Y* as a function of price P. The resulting curve is the supply curve for an optimally controlled fishery. Y* is affected by the discount rate δ, which is also referred to as the discounted supply curve. Discounted supply curves are provided in Fig. 3.28 and take on the discount rates of δ ¼ 0, δ ¼ 0.5, and δ ¼ 1. Controlled fishing takes on δ ¼ 0; an open fishery

Fig. 3.28 Discounted supply curves for the Japanese Spanish mackerel fisheries in the Yellow Sea and the Bohai Sea

3 Bioeconomic Model for a Single Species of Fish

173

Table 3.11 Relationship of the price of Japanese Spanish mackerel in the Yellow Sea and the Bohai Sea with B* and Y* Price of the fish ( p) (CNY/ton) 294 350 400 500 750 1000 1297 1500 2000 3500 5000 7500 10,000 1

Optimal population number (B*) (ton) 110,538 110,202 93,129 82,933 68,564 60,867 55,269 (k/2) 55,614 48,117 42,001 39,317 37,109 35,957 32,240

Optimal sustainable yield (Y*) (ton) 0 11,243 17,600 24,853 31,242 32,821 33,161(MSY) 33,084 32,615 31,250 30,399 29,581 29,112 27,040

Reference values: K¼ 110,538 tons; q ¼ 1.5341  104; r ¼ 1.2; c ¼ 5000 RMB; δ ¼ 0.5

takes on δ ¼ 1; and the discount rate 0.5 is taken to represent a finite discount rate. The data for drawing these curves are listed in Table 3.11. The discounted supply curve has the following properties: when p  c/Kq, the sustainable yield Y is 0; when p gradually increases from C/kq, the yield also increases, and when p increases to PMSY (corresponding to the price of the MSY), the yield reaches MSY; and when p increases again, the yield decreases, and the curve bends, leading to biological overfishing, and the degree of curvature of the curve is related to the discount rate. When the discount rate is 0, for controlled fisheries, the curve does not bend but approaches the MSY; when δ ! 1, the discounted supply curve is similar to the open fishery supply curve. Regarding the price of the fish PMSY corresponding to the MSY, if it is based on the Schaefer model, Formula (3.110) can determine the PMSY under different discount rate conditions, which are represented using PMSY, δ. According to the population number required for the MSY, which is K/2, and then according to Formula (3.110), we have: pMSY,δ ¼

cð2 þ r=δÞ qK

ð3:111Þ

The analysis of the supply and demand of a controlled fishery is similar to that of an open fishery. The movement of the demand curve affects the state of optimal equilibrium in the same way. An optimally controlled fishery may also have multiple equilibrium states, and, thus, it also has instability. Because the supply curve of an open fishery is often more obviously bent backward, an open fishery is much more sensitive to dynamic instability than is an optimally exploited fishery. Because the

174

X. Chen et al.

degree of backward curvature of the discounted supply curve is related to the value taken by the discount rate, the possibility of its instability will depend on the discount rate. When δ ¼ 0, the curve does not bend but approaches the MSY, and no instability will appear for any demand curve.

References Caddy JF, Csirke J (1983) Approximations to sustainable yield for exploited and unexploited stocks. Océanographie Tropicale 18:3–15 Clark CW (1976) Mathematical bioeconomics: the optimal Management of Renewable Resources. J. Wiley & Sons, New York Gordon HS (1953) An economic approach to the optimum utilization of fishery resources. J Fish Res Board Can 10(7):443 Hannesson R (1993) Bioeconomic analysis of fisheries. Fishing News Books, Blackwell, Oxford Pérez E, Defeo O (1996) Estimación de riesgo e incertidumbre en modelos de producción capturamortalidad. Biol Pesq 25:3–15 Quaas MF, Ruckes K, Requate R et al (2013) Incentives for optimal management of age-structured fish populations. Resour Energy Econ 35(2):113–134 Schaefer M B (1954) Some aspects of the dynamics of populations important to the management of commercial marine fisheries. Bull Inter-Am Trop Tunna Comm 1:27–56. Seijo JC, Defeo O, Salas S (1998) Fisheries bioeconomics-Theory, modeling and management. FAO Fisheries Technical Papers 368 Tahvonen O, Quaas MF, Schmidt JO et al (2013) Optimal harvesting of an age-structured schooling fishery. Environ Resour Econ 54(1):21–39 Wang WB, Xiu LH, Ye CC (1995) Effects of economic factors and discount rate on Penaeus chinensis fisheries. Fish Sci 14(3):3–9. (in Chinese) Ye CC, Huang B (1990) Mathematical and theoretical biology: resource assessment and management. China Agriculture Press. (in Chinese)

Chapter 4

Bioeconomic Model of Fishery Resources Under Ecological and Technological Interdependencies Xinjun Chen, Gang Li, and Qi Ding

Abstract In the last chapter, we introduced the bioeconomic allocation model and theory of single fishery species under the same fishing fleet. However, any kind of fish population can not survive in the water alone, and inevitably interact with other populations to form an interdependent and interrelated marine ecosystem. Therefore, it must be assumed that the mutual influence of interspecific relationship is ignored to describe the dynamic with single population allocation model using by single differential equation or difference equation, which is more reasonable only when a fishery resource is in the low-level fishing development. Nowadays, fishery resources are widely exploited and utilized, the low-level fishing development is less and less. Due to the increasing fishing intensity, the sharp changes in the resources of target and nontarget species and the changes in species composition in the development groups have been noticed all over the world. At the same time, due to overfishing, the resources of high-value species at the higher level of the food chain are further reduced. In this way, we realize that due to different fishing efforts and different fishing gear direct or indirect fishing, they will affect many kinds of resources. In recent decades, fishery scientists have begun to use the holistic analysis method to manage fishery. In addition to considering the influence of generations within the population, they should also consider the interaction of biological ecology and technology. Therefore, the optimal allocation of fishery resources development and utilization not only needs to consider the influence between generations but also involves interspecies and technical issues. This chapter mainly focuses on the bioeconomic balance model and optimal allocation of two kinds of fish to illustrate the basic methods of optimal allocation of multispecies resources.

X. Chen (*) · G. Li College of Marine Sciences, Shanghai Ocean University, Lingang New City, Shanghai, China e-mail: [email protected] Q. Ding Yellow Sea Fisheries Research Institute, Chinese Academy of Fishery Sciences, Qingdao, Shandong, China © China Agriculture Press 2021 X. Chen (ed.), Fisheries Resources Economics, https://doi.org/10.1007/978-981-33-4328-3_4

175

176

X. Chen et al.

Keywords Multispecies · Optimal allocation of resources · Ecology impact · Technical impact

4.1

Bioeconomic Model Under Technological Interdependencies

Technological interdependencies in one fisheries refer to when fleets or fishing gear with different fishing capacities (even with different effort costs) fish for different components of the same species or different target species at the same time and affect their resource abundance in different ways. At the end of the 1990s, Seijo et al. (1998) constructed a dynamic bioeconomic model of resources for multiple fleets based on the fact that operating fishing vessels with different operating capabilities or with different costs fish for the same fish at the same time will generate characteristics of technological interdependencies in the process of fishery resource exploitation. Using this model, they simulated the process of dynamic change over time in the resource amount, fishing effort, yield, and resource rent when different fleets (artisanal fleets and industrialized fleets) fish for the same species. They also simulated the dynamic change over time in the resource amount of target fish species and bycatch species, the fishing effort of each fleet, the yield, and the rent in a case of technological interdependencies when multiple fleets fish for multiple species at the same time. Entering the twenty-first century, Ruttan et al. (2000) utilized fishery data and economic parameters of large-scale fleets and small-scale fleets in the waters of the Gulf of Maine and Georges Bank in the United States and constructed a multifleets and multispecies bioeconomic model by combining yield and recruitment models to study the relationship between the fishing efforts of two fleets when they obtain optimal fishery profits. According to the technological interdependencies on different fishing behaviors, Ulrich et al. (2002) considered the mutual competition between fleets combined with factors such as multiple countries in the English Channel (the United Kingdom and France), a variety of fishing gear operating modes, and multiple target species to construct a complete bioeconomic model. They used this model to simulate the dynamic changes in fishing effort between all fleets under a variety of management strategies and the dynamic changes in the amount of artisanal fishery resources in the English Channel. Kompas and Che (2006) also constructed a bioeconomic model according to the effects of different tuna operating fleets (longline fishing, purse seine, and rod fishing fisheries), simulated the optimal fishing efforts for the different tuna fishery fleets in the Central and Western Pacific and their corresponding fishery profits, and explored the optimal harvest control rules (HCRs) of the tuna fisheries in those waters. Afterwards, Doyen et al. (2012), Ives et al. (2013), and Guillen et al. (2013) also applied a bioeconomic model of the technological interdependencies to carry out relevant research. Therefore, in this section, we describe the effects on the optimal allocation of fishery resources mainly in connection with different fishing efforts or different

4 Bioeconomic Model of Fishery Resources Under Ecological and Technological. . .

177

operating fishing vessels, which are specifically divided into the following several situations: (1) different fishing efforts when fishing for the same species; (2) the same fleet fishing for two ecologically independent species; and (3) two fleets fishing for two ecologically independent species.

4.1.1

Different Fishing Fleets When Fishing for the Same Species

4.1.1.1

Theoretical Derivation

Operating fishing vessels with different fishing capacities or operating fishing fleets with different costs fish for the same single fish group at the same time will generate technological interdependencies in the exploitation of fishery resource. The resource dynamic model of the effect generated by the two fleets (such as artisanal and industrialized fleets) can be represented as:
 Bðt Þ dB  Y 1 ðt Þ  Y 2 ðt Þ ¼ rBðt Þ 1  K dT

ð4:1Þ

In the formula, Y1(t) is the yield of Fleet 1 at time t; Y2(t) is the yield of Fleet 2 at time t; and. dB/dt ¼ 0 when the amount of resource reaches an equilibrium state; then,   B rB 1   Y1  Y2 ¼ 0 K

ð4:2Þ

In this way, the sustainable yield of Fleet 1 can be expressed as:   B  Y2 Y 1 ¼ rB 1  K We know that: Y 1 ¼ q1 f 1 B Y 2 ¼ q2 f 2 B Substitute them separately into Formula (4.3); then:

ð4:3Þ

178

X. Chen et al.


B¼

 q1 f 1 þ q2 f 2 K 1 r

ð4:4Þ

Then, the yield of each fleet is, respectively:
 q f þ q2 f 2 K Y 1 ¼ q1 f 1 1  1 1 r
 q f þ q2 f 2 Y 2 ¼ q2 f 2 1  1 1 K r

ð4:5Þ ð4:6Þ

The corresponding resource rents are: π 1 ¼ pY 1  c1 f 1

ð4:7Þ

π 2 ¼ pY 2  c2 f 2

ð4:8Þ

When the profit of Fleet 1 is 0, the bioeconomic equilibrium point can be expressed as: π 1 ¼ Kpq1 f 1 



 Kpq21 f 21 q f q f K þ 2 2 1 1  c1 f 1 ¼ 0 r r

Then, the fishing effort of Fleet 1 at the bioeconomic equilibrium point is:

f 1BE ¼

h  i c1 1  Kpq r  q2 f 2 1

q1

ð4:9Þ

We find the derivative of the net revenue dπ 1/df1 ¼ 0 in order to obtain the fishing effort corresponding to the time of the maximum economic yield (MEY). The following equation is obtained through derivation:
 2q f þ q2 f 2 c1 ¼ Kpq1 1  1 1 r

ð4:10Þ

The level of fishing effort corresponding to the MEY is: h f 1MEY ¼

 i c1 1  Kpq r  q2 f 2 1

2q1

ð4:11Þ

In the same way, we can obtain the level of fishing effort corresponding to the bioeconomic equilibrium point and MEY of Fleet 2.

4 Bioeconomic Model of Fishery Resources Under Ecological and Technological. . .

4.1.1.2

179

Case Analysis

Use the simultaneous fishing operations carried out by fleets in an artisanal fishery and an industrialized fishery for a certain pelagic fish as an example, see Table 4.1 for their specific parameters. The computer simulation of the development process for these two fisheries over the next 50 years is used to determine the dynamic changes in their amount of resources, yields, and fishing efforts, the results are shown in Fig. 4.1. Now, assume the time for the exploitation of this pelagic fish is 50 years, and utilize a computer to carry out simulations. Based on the simulation results, the production scale of the industrialized fishery fleet will continue to expand with time until its resource amount decreases to two million tons (Fig. 4.1). After reaching this resource amount, the economic rent of this fleet will become a negative value, thereby leading to the exit of some industrialized fishing vessels from that fishery. Therefore, a relative surplus is generated in the resource amount, and the surplus portion in the resource amount will be caught by an artisanal fishing fleet. Figure 4.1 represents the dynamic change process generated for resource amount, yield, and economic rent as the fishing effort expands under different fleets and different fishing efforts. The relationships between increases in the fishing efforts of artisanal fishery and industrialized fishery fleets and the changes in resource amounts can be seen in Fig. 4.1a, b. The resource amount decreases as the fishing effort increases. When the fishing effort of an industrialized fleet reaches approximately 520 fishing vessels, its resource amount decreases to approximately two million tons. After the resource amount has decreased to this value, due to the poor fishing benefits of the industrialized fleet, a negative value appears for economic benefits, and the industrialized fleet gradually decreases in number and is replaced by an artisanal fishery. Figure 4.1c, d represent the relationships that the yields of the artisanal fishery and industrialized fishery fleets have with fishing effort. It can be seen from the figure that an increase first and a decrease afterwards appear in the yield of the industrialized fleet, and then, it approaches the exiting process for that fishery; when Table 4.1 Input parameters defined for a simulation model directed to evaluate the dynamic behavior of a stock harvested by two technologically interdependent fleets (Seijo et al. 1998) Parameter intrinsic rate of increase in the population the environmental carrying capacity Catchability coefficient for an artisanal fishery Catchability coefficient for an industrialized fishery Price of the species

Value 0.36 4,000,000 tons 0.0002 0.00035 60 CNY/ton

Parameter Per unit fishing cost of an artisanal fishery Per unit fishing cost of an industrialized fishery Dynamic parameter of an artisanal fishery Dynamic parameter of an industrialized fishery

Value 15,000 CNY/ton 45,000 CNY/ton 0.00001 0.00001

180

X. Chen et al.

Fig. 4.1 Dynamic change process for (a and b) resource amount, (c and d) yield, and (e and f) economic rent as the fishing effort increases under different fleet situations (Seijo et al. 1998)

the fishing effort reaches approximately 500 vessels, the yield is highest, at approximately 430,000 tons, and then a decrease also appears in yield as the fishing effort decreases. However, growth continues to appear in the yield of the artisanal fishery; when the fishing effort reaches 1250 vessels, the maximum yield is attained, approximately 350,000 tons. Figure 4.1e, f represent the relationships between the rents (net revenues) of the artisanal fishery and industrialized fishery fleets and fishing effort. It can be seen from the figure that an increase first and a decrease afterwards, or profit first and loss later, appear in the rent of the industrialized fleet and that the industrialized fleet finally exits that fishery. When the fishing effort in the industrialized fisheries is at approximately 520 vessels, its rent is 0. However, fluctuating change appears in the rent of the artisanal fishery as fishing effort increases, and two peak values appear: the first peak appears when the fishing effort in the artisanal fishery is approximately

Effort (number of vessels)

4 Bioeconomic Model of Fishery Resources Under Ecological and Technological. . .

181

Artisanal fleet

Industrialized fleet

Time (year)

Fig. 4.2 Dynamic changes in (a) resource amount, (b) effort, (c) yield, and (d) economic rent over time (Seijo et al. 1998)

210 vessels and the corresponding rent is four million CNY, and the second peak appears when the fishing effort is approximately 900 vessels and the corresponding rent is approximately 4.70 million CNY. However, afterwards, a decrease appears in the rent as the fishing effort increases. Figure 4.2 represents the entire dynamic process for resource amount, fishing effort, yield, and rent over time when two fleets have fishing operations at the same time. From Fig. 4.2, during the first 10 years of that fishery, no comparatively large change and decrease appear in the resource amount; in this stage, the yield, fishing effort, and rent do not increase greatly. However, during the second 10 years, due to the rapid increase in fishing effort, especially by the industrialized fleet, a substantial decrease appears in the resource amount, a decrease from approximately 3.70 million tons initially to 2.25 million tons (Fig. 4.2a); the fishing effort of the industrialized fishing fleet basically reaches the highest value, increasing from approximately 30 vessels to approximately 520 vessels (Fig. 4.2b), its corresponding yield also reaches a maximum, increasing from 50,000 tons to 430,000 tons (Fig. 4.2c), but its rent (profit) experiences an increase and then decrease (Fig. 4.2d). At this stage, the fishing effort and yield of the artisanal fleet continue to increase, and the rent (profit) also continues to increase. In the next 30 years, a continuously small decrease appears in the resource amount (Fig. 4.2a), and throughout the 50 years simulated, the effort of the industrialized fishing fleet continues to decrease at this stage, and this trend continues until the industrialized fishing fleet is

182

X. Chen et al.

close to exiting from this pelagic fishery in contrast, the fishing effort of the artisanal fleet continues to increase. When the long-term bioeconomic equilibrium point TR ¼ TC is reached, the number of industrialized fishing vessels is only 7, but the number of artisanal fishing vessels reaches 1250. In the long run, due to the low cost of the artisanal fishery, generating advantages for the artisanal fleet, the industrialized fleet continues to be squeezed out, eventually exiting this pelagic fishery. We use examples to analyze two fleets with different fishing capacities that carry out fishing operations for a certain fishery resource at the same time and assume that the fishing costs of the two are different. Generally, the greater the fishing capacity is, the higher the cost required. Therefore, in the early stage of fishery resource exploitation and utilization, fleets with a large fishing capacity (high cost) have advantages, but as a result of free entry to fishing, the resource amount of this species gradually decreases, leading to the exit of fleets with a large fishing capacity (high cost) from that fishery and replacement by fleets with low fishing costs. Finally, the fishery is occupied by operating modes with low fishing costs.

4.1.2

Two Ecologically Independent Species Fished by the Same Fleet at the Same Time

Now assume there are two ecologically independent species; their intrinsic rates of population growth are different, and they are exploited at the same time. Suppose further that for a certain fishery to fish for Species A, it must fish for Species B at the same time, and vice versa. Now, analyses are carried out on their dynamic features, stability, and yield curve, as well as the effect of economic parameters on these features.

4.1.2.1

Theoretical Derivation

For simplicity, we assume that each species obeys the logistic growth equation, and the fishing effort f is used to represent the fishing effort dedicated to joint operations, which can then be represented using the following expression:
 dB1 B ¼ r 1 B1 1  1  q1 fB1 dt K1
 dB2 B ¼ r 2 B2 1  2  q2 fB2 dt K2 In the formula, B represents the population number; r is the intrinsic rate of increase in the population;

ð4:12Þ

4 Bioeconomic Model of Fishery Resources Under Ecological and Technological. . .

183

K is the environmental carrying capacity; q represents the catchability coefficient; and, f is the fishing effort. The subscripts 1 and 2 for each symbol in the formula represent the two species. Model Formula (4.12) is actually the extension of the Schaefer model to a two-species situation. If it is assumed that the unit prices of the catch for these two species are p1 and p2, respectively, the enterprise cost is proportional to the fishing effort, and the per unit fishing cost is c; then, the expression for the net profit π is: π ðB1 , B2 , f Þ ¼ p1 q1 B1 f þ p2 q2 B2 f  cf

ð4:13Þ

dB2 1 We know that the equilibrium solution dB dt ¼ dt ¼ 0 for the equations in Formula (4.12) can only appear on the coordinate axis (B1 ¼ 0 or B2 ¼ 0) or at a certain point (B1, B2) of the equilibrium line segment

r 1 ð1  B1 =K 1 Þ r 2 ð1  B2 =K 2 Þ ¼ q1 q2

0  B1  K 1 ,

0  B2  K 2

ð4:14Þ

Now, assume that: r1 r2 < q1 q2

ð4:15Þ

Then, the aforementioned equilibrium line intersects with the B2 axis at (B1 ¼ 0):
 r q B2 ¼ K 2 1  1 2 r 2 q1

ð4:16Þ

as shown in Fig. 4.3. If Formula (4.15) is not established, then a negative value appears in the biomass B2*, which cannot possibly happen. Therefore, Formulas (4.15) and (4.16) are established at the same time. If the inequality in Formula (4.15) is assumed to be the opposite, then the situation is similar. At thistime, use the point of intersection B1* located on the B1 axis to replace B2*, B1 ¼ K 1 1  rr21 qq1 ðB2 ¼ 0Þ 2

In an open fishery, Formula (4.14) and conditions can be used together to represent the characteristics of its bioeconomic equilibrium: π ¼ p1 q1 B1 f þ p2 q2 B2 f  cf ¼ 0

ð4:17Þ

If all points (B1, B2) of ( p1q1B1 + p2q2B2  c) to the equilibrium line segment [that is, Formula (4.14) above] are negative, then the fishery will not generate economic profit. At this time, the fishery resources still will not be exploited and utilized, and therefore, the fishing effort is f ¼ 0; otherwise, the two situations as

184

X. Chen et al.

a

b

B2

B2

dB1 dB2 = =0 dt dt

dB1 dB2 = =0 dt dt

(K1,K2)

(K1,K2)

B2∞ B*2

B*2

p =0

B1∞

B2∞

B1

p =0 B1∞=0

B1

Fig. 4.3 Bioeconomic equilibrium of two species in a fishery. (a) Neither internal species is extinct; (b) the B1 species is extinct

shown in Fig. 4.3 will exist. In the first situation (Fig. 4.3a), the zero-profit line π ¼ 0 intersects with the equilibrium line (Formula 4.14) at the point (B11, B21), wherein B11 and B21 are both positive. In the second type of situation (Fig. 4.3b), these two lines do not intersect, and the bioeconomic equilibrium appears at the point (0, B21) (that is B11 ¼ 0). It can be seen from Formulas (4.16) and (4.17) that the necessary and sufficient condition for B11 to be positive is: c > B2 p2 q2

ð4:18Þ

Therefore, we can obtain the following conclusion: when the inequalities opposite to those in Formulas (4.15) and (4.18) are established at the same time, the open fishery causes the B1 population to eventually become extinct because B11 is a negative value at this time. In the Gordon-Schafer model for a single species, when B1!0, the per unit fishing cost has to ultimately exceed the price: therefore, extinction is impossible. According to the analysis, when two species are jointly exploited, one population may become extinct, while the other species continues to maintain the bioeconomic equilibrium (one species) of the fishery. This conclusion obviously can be extended to a situation involving the joint fishing of several species; some species may be eliminated while other species continue to survive. Now, the Antarctic whale fishery is used as an example, and it is assumed that a certain fishery only exploits two species: the blue whale and the fin whale. B1 and B2 represent the number of blue whales and finback whales, respectively. For the Antarctic fin whale population, the parameter values are r2 ¼ 0.08 and K2 ¼ 400,000; for the blue whale, r1 ¼ 0.05 and K1 ¼ 150,000. In addition, assume that the catchability coefficients of these two species are the same and are set as q1 ¼ q2 ¼ 1.

4 Bioeconomic Model of Fishery Resources Under Ecological and Technological. . .

185

Therefore, the inequality in Formula (4.15) is established; that is, r1/ q1 ¼ 0.05 < r2/q2 ¼ 0.08. Thus, the following is obtained from the equation in Formula (4.16):

 r q 0:05 ¼ 150000 B2 ¼ K 2 1  1 2 ¼ 400000  1  0:08 r 2 q1 From this, we can obtain the following conclusion: if an Antarctic whale fishery that no one manages reaches bioeconomic equilibrium in a situation where there are fewer than 150,000 fin whales, then the population equilibrium value of the blue whales is equal to zero. In light of the fact that the Antarctic fin whale population was reduced to approximately 75,000 by 1975, if the fin whale fishery continues to not be managed, the survival of the blue whale in Antarctica will be in jeopardy. The International Whaling Commission (IWC) seemed to be aware of this danger in 1965 and decided to temporarily ban blue whale fishing. However, notably, the estimated value of the fin whale’s B2* at 150,000 is closely dependent on the relative growth rate r1/r2. For example, if the growth rates of two species of whales are exactly equal and r1 ¼ r2, then B2* ¼ 0, and the model cannot predict which species will become extinct. In the same way, if r1 > r2, then the fin whale may become an endangered population. On the other hand, if other species of whale have an annual growth rate exceeding 8%, then this model can predict that the blue whale, the fin whale, and other species will be gradually eliminated. Interestingly, this inference is unrelated to the relative numerical values for different species but is related to their relative growth rates. In summary, the conditions for utilizing this model to predict the elimination of the B1 population in an open fishery are as follows: 1. When q1 ¼ q2, the basic requirement is r1 < r2. In this situation, when the cost to 1Þ , price ratio of the B2 species is sufficiently low, that is, when p cq < B2 ¼ K 2 ð1r r2 2 2 the B1 species will be eliminated. Note that in this model, the elimination of the B1 species is related to the price p2 of the B2 species but is unrelated to the price p1 of the B1 species. 2. When q1 6¼ q2, the basic condition changes to r1/qq < r2/q2. We refer to the r1/q1 ratio as the biological technology production rate of the B1 species. Therefore, when the inherent growth rate of a species (that is, its life potential) r is comparatively low or the catchability coefficient is comparatively high, then it has a comparatively low biological technology production rate. Then, we believe that if the cost to price ratio of other species is sufficiently low, then in a joint fishing situation, the species with a comparatively low biological technology production rate is prone to extinction. Although this conclusion is derived from the assumed condition of logistic growth, it is not difficult to extend it to a more general model.

186

4.1.2.2

X. Chen et al.

Derivation of the Maximum Sustainable Yield

Rewrite Formula (4.12) as follows:
 dB1 B ¼ r 1 B1 1  1  q1 fB1 dt K1
 dB2 B ¼ r 2 B2 1  2  q2 fB2 dt K2

ð4:19Þ

dB2 1 In an equilibrium state, dB dt ¼ dt ¼ 0 The non-zero equilibrium point of the equations is:


 fq B1 ¼ K 1 1  1 r1
 fq2  B2 ¼ K 2 1  r2

ð4:19Þ

The sustainable yields (Ye) of the two species are:
 fq Y eB1 ¼ q1 fK 1 1  1 r1
 fq Y eB2 ¼ q2 fK 2 1  2 r2

ð4:20Þ

Let q1K1 ¼ a1, q12K1/rl ¼ b1, and q2k2 ¼ a2, q12k2/r2 ¼ b2; then: Y eB1 ¼ a1 f  b1 f 2 Y eB2 ¼ a2 f  b2 f 2

ð4:21Þ

Then, the joint sustainable yield Ye of the two species is: Y e ¼ Y eB1 þ Y eB2 ¼ ða1 þ a2 Þf  ðb1 þ b2 Þ f 2

ð4:22Þ

Now, determine the maximum sustainable yield (MSY) of the two species and the corresponding fishing effort ( fMSY). Take the derivative of Formula (4.22), and let the derivative be equal to 0; the formula can be solved to obtain: f MSY ¼

a1 þ a2 2ðb1 þ b2 Þ

Substitute Formula (4.23) back into Formula (4.22):

ð4:23Þ

4 Bioeconomic Model of Fishery Resources Under Ecological and Technological. . .

187

Fig. 4.4 The relationship between the sustainable yields of the two species and fishing effort

MSY ¼

ð a1 þ a2 Þ 2 4ð b1 þ b2 Þ

ð4:24Þ

Still using the Antarctic blue whale (B1) and fin whale (B2) as examples, the parameter values for the Antarctic fin whale are r2 ¼ 0.08 and K2 ¼ 400,000, and those for the blue whale are r1 ¼ 0.05 and K1 ¼ 150,000. Assume now that the catchability coefficients for these two species are the same, and set them as q1 ¼ q2 ¼ 2  104. Draw the yield-fishing effort curves for the two species (see Fig. 4.4) according to Formulas (4.21) and (4.22). There are three curves in Fig. 4.4. Curve A is the blue whale curve, B is the fin whale curve, and C is the joint yield curve. Among them, when YeBl ¼ 0, f ¼ r1/q1 ¼ 250, and when YeB2 ¼ 0, f ¼ r2/ q2 ¼ 400. From the statistical data for the fishery, the various parameter values in Formula (4.21) can be found, and the joint MSY and the corresponding fishing effort for the two species can be calculated according to Formulas (4.23) and (4.24). In this example, the joint maximum sustainable yield MSY is 9453 tails, and the corresponding fishing effort fMSY is 171.8 days. This method can be extended to fisheries that fish for multiple species.

4.1.2.3

Derivation of the MEY and Bioeconomic Equilibrium Point

The revenue from fishing for two species at the same time in one type of fishery is expressed by the following formula:

188

X. Chen et al.

    TR ¼ TRB1 þ TRB2 ¼ p1 a1 f  b1 f 2 þ p2 a2 f  b2 f 2

ð4:25Þ

In the formula, TR is the total revenue of the fishery; TRBl is the revenue from the catch of the B1 species; TRB2 is the revenue from the catch of the B2 species; and. a and b are the undetermined parameters in Formula (4.21). Assume that the fishery cost is proportional to the fishing effort f; then, the total cost is expressed by the following formula: TC ¼ cf

ð4:26Þ

The net profit (π) of the fishery is:     π ¼ TR  TC ¼ p1 a1 f  b1 f 2 þ p2 a2 f  b2 f 2  cf

ð4:27Þ

1. Profit (π) and the Corresponding Fishing Effort ( fMEY) at the Time of the MEY Take the derivative of Formula (4.27), and let dπ/df ¼ 0; solve, and one can obtain the fMEY: f MEY ¼

p1 a1 þ p2 a2  c 2ð p1 b1 þ p2 b2 Þ

ð4:28Þ

Substitute Formula (4.28) back into Formula (4.27), and one can obtain: π max ¼

ðp1 a1 þ p2 a2  cÞ2 4ð p1 b1 þ p2 b2 Þ

ð4:29Þ

2. Fishing Effort ( f1) at the Bioeconomic Equilibrium Point In the analysis of the bioeconomic model, if the total revenue and the total cost are equal, then the fishery has reached a bioeconomic equilibrium. At this time, the fishing effort is represented using the symbol f1. Let Formula (4.27) be equal to 0; then: f1 ¼

p1 a1 þ p2 a2  c p1 b1 þ p2 b2

ð4:30Þ

Estimate the undetermined parameters a and b from the statistical data for the fishery. After the economic parameters c and d in the fishery are determined from a market survey, then fMEY, π, and f1 can be calculated according to Formulas (4.28), (4.29), and (4.30), respectively. Still using the Antarctic whale as an example, p1 is the price of the blue whale, and p2 is the price of the fin whale. Now, assume that p1 ¼ 10,000 CNY/tail, and

Fig. 4.5 Revenue and cost curves for the resource exploitation model for two types of fish

Revenue and cost (107 CNY)

4 Bioeconomic Model of Fishery Resources Under Ecological and Technological. . .

189

TR TC TR

60 50

TR1 40 TC

30 TR2

20 10 0

100

f∞ 200 r1/q1 300

400 r2/q2 f

p2 ¼ 5000 CNY/tail. According to Formulas (4.25) and (4.26), draw the revenue and cost curves for the two species. To standardize the graph, let the unit cost c ¼ 100,000 CNY/day. In Fig. 4.5, the total revenue curve TR is the sum of the two (parabolas) revenue curves. The price of the B1 species (blue whale) ( p1) is higher than the price of the B2 species (fin whale) ( p2). Therefore, the maximum value of that fishery’s profit is determined by the contribution of the B1 species, and the left side of the total revenue curve protrudes significantly. If the value of the B2 species is comparatively high, then the protruding portion on the left side is not significant. The point of intersection between the total revenue curve and the cost curve is the bioeconomic equilibrium point. This equilibrium point can be viewed intuitively from Fig. 4.5. At the time of f ¼ f1 ( f1 corresponds to the fishing effort at the time of bioeconomic equilibrium), the B1 species has already become extinct. If this fishery is controlled and the fishing effort is controlled at fMEY (corresponding to the fishing effort of maximum fishery profit), in this example, the B1 species is not extinct. Now, imagine that the value of the B2 species occupies a dominant position; then, the maximum profit sustained by that fishery will inevitably make the B1 species become extinct. Even at a discount rate of 0 and under the optimal economic situation, one of the two species may also suffer extinction. This unexpected conclusion is closely related to the assumption that the two species cannot be fished separately. Therefore, it can be further inferred that protecting all species in an exploited system for the needs of economic interests is not a reasonable or optimal management strategy. Sometimes, for a fishery to acquire maximum economic interests, the elimination of one species therein may be necessary and reasonable.

190

4.1.2.4

X. Chen et al.

Effect of the Discount Rate

The effect of the discount rate (0 < δ < 1) on the fishery resource allocation for two species will be briefly analyzed below. Under the condition of simultaneous exploitation of two species, the profit (π) of the fishery is affected by the numbers of the two species and the fishing effort and is related to the discount rate. The goal of optimal allocation of fishery resources is to make its present value reach the maximum. Z PV ¼

1

eδt ½p1 q1 B1 þ p2 q2 B2  cf ðt Þdt

ð4:31Þ

0

Take the maximum value that satisfies Formula (4.19) and is under the additional control constraint 0  f  fmax. Under equilibrium conditions, one has: f ¼

F ðB1 Þ F ðB2 Þ ¼ q1 B 1 q2 B2

ð4:32Þ

Solve Formula (4.31), and one can obtain:   F ðB1 Þ F ðB 2 Þ p1 q1 B 1  þ p2 q2 B 2  ¼c r1 þ δ r1 þ δ

ð4:33Þ

In the formula: r 1 ¼ F 0 ðB1 Þ 

F ðB1 Þ r 1 B1 ¼ B1 K1

r 2 ¼ F 0 ðB2 Þ 

F ðB2 Þ r 2 B2 ¼ B2 K2

Formulas (4.32) and (4.33) can be used to determine the level of optimal population numbers B ¼ B1δ and B2 ¼ B2δ. The two—B1δ and B2δ—decrease respectively as the discount rate δ increases and trend toward the quantities at the time of bioeconomic equilibrium, B11 and B21.

4.1.3

Technologically Interdependent Fisheries for Two Fishing Fleets

4.1.3.1

Fleet 1 Occasionally Fishes the Target Species of Fleet 2

Assume that a certain fishery is composed of two fleets and that they simultaneously fish for two species, wherein Species 1 is the target for Fleet 1, which also catches

4 Bioeconomic Model of Fishery Resources Under Ecological and Technological. . .

191

Table 4.2 Input parameters used in dynamic programming directed to simulate the behavior or fishery performance variables through time (Seijo et al. 1998) Parameter Intrinsic rate of increase in the population for Species 1 Intrinsic rate of increase in the population for Species 2 K value of Species 1 K value of Species 2 q of Fleet 1 in catching Species 1 q of Fleet 1 in catching Species 2

Value 0.36

q of Fleet 2 in catching Species 1

0.00015

0.30 4,000,000 2,000,000 0.0004 0

Parameter q of Fleet 2 in catching Species 2 Price of Species 1 Price of Species 2 Unit cost of Fleet 1 Unit cost of Fleet 2 Dynamic parameter of Fleet 1 Dynamic parameter of Fleet 2

Value 0.0025 60 45 60,000 15,000 0.00001 0.000015

Species 2 at the same time, but Species 2 is the target fish species of Fleet 2. See Table 4.2 for their corresponding bioeconomic parameters. Similarly, we utilize a computer to carry out an exploitation simulation with a period of 50 years; see Fig. 4.6 for the simulation situation. Figure 4.6 represents the changing situation in the resource amount of the target fish species and the bycatch species, the fishing efforts of the two fleets, the yields, and the rents (profits) over time in a case of the technologically interdependent fisheries. Due to the continuous development of marine fisheries and the expansion of fishing effort, different degrees of decrease appear in the resource amount of the two fish species. The resource amount of Species 1 and Species 2 does not decrease greatly in the first 10 years. However, a sharp decrease appears in resource amount of Species 1 in the short 5-year period from the tenth to the 15th years, a decrease from 3.6 million tons to 1.25 million tons, approaching the lowest point; afterwards, an increase and fluctuations within a narrow range appear. Between the tenth and the 25th years, a decrease also appears in the resource amount of Species 2, and it reaches the lowest point in the 25th year, after which an increase within a narrow range appears (Fig. 4.6a). Similarly, in the initial stage of fishery exploitation and utilization, an increasing trend appears in both fleets. Fleet 1 reaches the maximum in the 15th year, with approximately 1100 operating fishing vessels, while Fleet 2 reaches the greatest number of fishing vessels in the 20th year, after which declines and fluctuations appear. In the long run, at the time of the bioeconomic equilibrium, the number of vessels in the two fleets is close to 500 (Fig. 4.6b). During the first 15 years, Fleet 1 obtains the majority of the catch due to its higher fishing capacity. However, the resource amount of Species 1 also decreases to 1/4 of the original. Fleet 2 reaches the maximum yield in the 16th year of fishery development, and then, a decline appears (Fig. 4.6c). Due to the continuous increase in fishing effort, the rent of Fleet 1 becomes a negative value in the 15th year, and the resource amount and yield decrease (Fig. 4.6d). Due to changes in the fishing

192

X. Chen et al.

(a) resources amount

(c) yield

(b) fishing effort

(d) economic rent

Fig. 4.6 Resource exploitation and utilization process for two species fished by two fleets with technologically interdependent fisheries, (a) resources amount, (b) fishing effort, (c) yield, (d) economic rent (Seijo et al. 1998)

intensity of the two fleets, the resource amount, yield, and revenue in the fishery show large periodic changes. In fisheries with periodic changes, effective management measures must be adopted to carry out intervention, especially during the recovery period for fishery resources. Therefore, the effect generated due to excessive investment can be offset.

4.1.3.2

Mutual Influence of Fleet 1 and Fleet 2

When the two fleets are also respectively catching the target species in another fishery, the resource amounts and yields for the X and Y species are a function of the two fishing efforts. However, the economic revenue of one fleet will depend on the level of the fishing effort exerted by the other fleet. For Fleet 1 (with target species X), the economic profit is: π 1 ðt Þ ¼ pX Y x1 ð f 1 , f 2 Þ þ pY Y Y1 ð f 1 , f 2 Þ  c1 f 1 For Fleet 2 (with target species Y), the economic profit is:

ð4:34Þ

4 Bioeconomic Model of Fishery Resources Under Ecological and Technological. . .

π 2 ðt Þ ¼ pY Y Y2 ð f 1 , f 2 Þ þ pX Y X2 ð f 1 , f 2 Þ  c2 f 2

193

ð4:35Þ

When a certain fleet increases its level of fishing effort, the equilibrium yield of another fishery will decrease. This situation will also appear in the case of open entry to fishing.

4.1.3.3

Technological Interdependencies: Sequential Fisheries

For sequential fisheries, two geographically independent fisheries (such as a coastal artisanal fishery and an open-sea industrialized fishery) carry out fishing for a certain species or multiple species at different stages of life. In this way, competition will be generated between the users of fishery resources. Some scholars have analyzed and studied how a sequential fishing group implements catch optimization between two fleets. Although an equilibrium curve for a population exists, there are different catches, prices, costs, and economic revenues for each fleet. In the case of open entry to fishing, mutual competition between fleets will definitely exist. Catch optimization between fleets depends mainly on price and cost, as well as the biological characteristics of the species. Therefore, the age structure of the population and the effect of the fleet on that population are key to establishing a sequential fishery model. The following is an example that illustrates a continuous fishery composed of two fleets and two species. The changing situation in fishing effort and the resource amount over time are simulated by establishing a dynamic bioeconomic model for multiple species. The assumed parameters are listed in Table 4.3. The selectivity curve and sea-sweeping area method are utilized to determine the catchability coefficient and selectivity coefficient. The changing situation in resource amount, yield, fishing effort, and economic rent over time are shown in Fig. 4.7. It can be seen from Fig. 4.7 that as a result of the expansion of the industrialized fishing fleet, in the fishery development stage, substantial decreases appear in the resource amounts of the two species. In the 20th year of fishery exploitation, the fish catch for the industrialized fleet reaches the maximum; at this time, the number of fishing vessels also reaches the maximum. Afterwards, the number of vessels in that industrialized fleet continues to decrease until the end of simulation time (50 years), whereas the artisanal fishery shows a steady growth trend, which manifests in the fish catch and the number of operating fishing vessels. As a result of low-cost operations, it will squeeze out the industrialized fleet in the long run. The increase in the fishing effort of the artisanal fleet leads to overfishing of the replenishment, thereby reducing the population utilization rate of the industrialized fleet. Due to the huge profit between the 15th and the 20th years, which leads to a rapid increase in the number of industrialized fishing vessels, an excessive investment situation appears in a later stage (the 20th to the 25th years). Between the 35th and the 50th years, the

194

X. Chen et al.

Table 4.3 Input parameters of a multispecific dynamic bioeconomic model that represents a sequential fishery (Seijo et al. 1998) Parameter Maximum age (year) of Species 1 Maximum age (year) of Species 2 Age at first sexual maturity for Species 1 Age at first sexual maturity for Species 2 Sex (two species)

3

Parameter Maximum body weight of Species 1 in g Maximum body weight of Species 2 in g Minimum price of Species 1

1500 CNY/ton

2

Minimum price of Species 2

1000 CNY/ton

0.50

50

100,000,000

Slope of the price curve for Species 1 Slope of the price curve for Species 2 Unit cost of Fleet 1

Natural mortality of Species 1

0.4/year

Unit cost of Fleet 2

Natural mortality of Species 2 Average fecundity of Species 1 Average fecundity of Species 2 Growth parameter of Species 1 Growth parameter of Species 2 t0 of Species 1

0.45/year 1,200,000

Dynamic parameter of Fleet 1 Dynamic parameter of Fleet 2

1,200,000

t0 of Species 2

0.50 year

Maximum body length of Species 1 in mm Maximum body length of Species 2 in mm

920

Fleet 1’s fishing gear sea-sweeping area in km2 Fleet 2’s fishing gear sea-sweeping area in km2 Fleet 1’s 50–70% selectivity lengths for Species 1 Fleet 2’s 50–70% selectivity lengths for Species 1 Fleet 1’s 50–70% selectivity lengths for Species 2 Fleet 2’s 50–70% selectivity lengths for Species 2 Distribution area of the two species in km2

Maximum observed replenishment of Species 1 Maximum observed replenishment of Species 2

Value 20 12

50,000,000

0.12/year 0.19/year 0.55 year

600

Value 12,500 2400

5 55,000 CNY/vessel/ year CNY 5000/ vessel/year 0.00001 0.0001 2.50 0.18 450, 650 300, 450 300, 450 200, 275 5000

industrialized fleet gradually trends toward the bioeconomic equilibrium point. On the other hand, the artisanal fleet maintains low benefits throughout the entire simulation period.

4 Bioeconomic Model of Fishery Resources Under Ecological and Technological. . .

a

195

b 140

8000

Yield (thousand tons)

Resource amount (thousand tons)

SPI Industrialized fleet

120 100 80 60

6000 4000

SP2 Industrialized fleet

2000

SP1 Artisanal fleet SP2 Artisanal fleet

0

40 0

10

20 30 Time (year)

40

0

50

10

resource amount

40

50

yield

d

1200

5000 4000

1000 800

Rent (thousand CNY)

Effort (number of vessels)

c

20 30 Time (year)

Artisanal fleet

600 400

Industrialized fleet

200

Industrialized fleet

3000 2000 1000

Artisanal fleet

0

–1000

0

–2000 0

10

20 30 Time (year)

fishing effort

40

50

0

10

20 30 Time (year)

40

50

rent

Fig. 4.7 Simulation process for the dynamic allocation of resources in a typical sequential fishery, (a) resource amount, (b) yield, (c) fishing effort, (d) rent (Seijo et al. 1998)

4.2

Bioeconomic Model Influenced Jointly by Technology and Ecology

For many fisheries, it is very important to consider the mutual influence of technology when multiple fleets are competitively fishing for the same fish population or different fish populations; similarly, it is also necessary to consider the mutual influence of biology and ecology caused by factors such as biologically competitive relationships, predator and prey relationships, symbiotic relationships, and commensal relationships between different fish species. When two fleets fish for two species that influence each other, the exploitation and utilization process in which technology and ecology jointly influence fishery resources become apparent. In this situation, the amount of fishing effort put forth by a certain fishery will generate indirect effects on other fisheries, such that the most appropriate fishing strategy for the fishery will depend on the degree of influence between species in competitive relationships and the diet composition of predators in predator and prey relationships, and so on. Therefore, to solve specific management problems through an ecosystem-based fishery management method, fishery scientists must fully consider

196

X. Chen et al.

and analyze the complexity of ecological and technological factors to build a bioeconomic model so as to correctly understand the dynamic changes in fishery resources and the dynamic changes in fishery resource exploitation in a fishery environment with multiple species and multiple fleets in operation. In the mid-1980s, Charles and Reed (1985) combined the competitiveness and the coexisting characteristics between fleets to build a bioeconomic model to study optimal fishing allocation strategies in the exploitation of a single fish population by continuous fishing by Canadian coastal fleets and offshore fleets. Flaaten (1998) used the Northeast Arctic cod (Gadus morhua) and important prey species (capelin (Mallotus villosus), herring (Clupea harengus), Northern Prawn (Pandalus borealis), and Alaska pollock (Theragra chalcogramma)) as examples to build a bioeconomic model based on predator and prey relationships; in the study, fishery management strategies, such as the most appropriate level of fishing effort and resource amount, differed with the different target species chosen under the single population or multiple population framework. In the predator and prey biomass model, the equilibrium yield and resource rent of the predator population was proportional to the resource amount of the prey population, but the relationship of equilibrium yield and resource rent of the prey population with the resource amount of the predator population was comparatively fuzzy, usually negatively correlated. Armstrong (2007) combined the spatial distribution of fisheries with factors such as the ecosystem and habitat environment to build a bioeconomic model and carried out ecological and economic analyses of fishery resources in fishery conservation zones in terms of the discount rate for fisheries, input of fishing effort, fishery management costs, and management uncertainties. In this section, we separately analyze two situations—the competitive state and the predatory state.

4.2.1

Competitive State

4.2.1.1

Theoretical Derivation

Gause (1935) studied the dynamic system of a competition model between two populations, which can be described by Formula (4.36).
 dB1 B1 ¼ F ðB1 , B2 Þ ¼ r 1 B1 1   αB1 B2 dt K1
 dB2 B2 ¼ GðB1 , B2 Þ ¼ r 2 B2 1   βB1 B2 dt K2 in which. B is the population number; r is the intrinsic rate of increase in the population;

ð4:36Þ

4 Bioeconomic Model of Fishery Resources Under Ecological and Technological. . .

197

K is the environmental carrying capacity; subscripts 1 and 2 represent population 1 and population 2; and. α and β represent the competition-related parameters of the two populations. Formula (4.36) represents the effect of competition, in terms of food, between the two populations on their numbers; this effect is represented by the negative interaction terms αβ1β2 and βB1B2 used in the equations of (4.36). The most basic feature of the state equations of the two populations in Formula (4.36) is that in an unexploited condition, when the resource biomass of population of B1 is higher, the resource biomass of population of B2 is reduced accordingly; on the contrary, when the resource biomass of population of B2 is higher, the resource biomass of population of B1 is reduced accordingly. The decrease in size is related to the resource biomass of population and the competition coefficient α or β. Although the equations in (4.36) cannot be solved using an exact formula, many situations can be obtained from the qualitative analysis of the system. There are four isoclines: B1 ¼ 0 B2 ¼ 0 
r B B1 ¼ 2 1  2 in case β K2

r B B2 ¼ 1 1  1 in case α K1


 dB2 ¼0 dt  dB1 ¼0 dt

These isoclines produce three types of equilibrium points located on one or the other coordinate axis, and in some situations, an equilibrium point Q located in the first quadrant is also produced (we are only interested in solutions that make B1  0 and B2  0). Three fundamentally different cases are illustrated in Fig. 4.8. In the first type of competitive coexistence situation (Fig. 4.8a), there is a stable node Q ¼ (B10, B20), wherein all numbers are positive. In the second type of situation (Fig. 4.8b), Q is a saddle point, and there are two stable equilibrium points (nodes) at (K1, 0) and (0, K2). The competition result depends on the initial population levels because one species is eventually forced into extinction (competitive exclusion). In the third type of situation (Fig. 4.8c), also competitive exclusion, there is only one stable equilibrium state at (K1, 0) or (0, K2), and one of the species therein inevitably wins. Except for some special situations, one of which is in Fig. 4.8d, the Gause equations are structurally stable. It is very clear that a slight change in the position of the isocline can change the graph with a stable node at K1 into the graph shown in Fig. 4.8b, in which a node is added. We discussed several competitive states above in a situation without exploitation and utilization. Now, if the isoclines of the equations in (4.36) are as shown in Fig. 4.9a and if (K1, 0) is the only stable equilibrium state, only the B2 population can

198

X. Chen et al.

Fig. 4.8 Development trajectories of the Gause equations, (a) competitive coexistence, (b–d) competitive exclusion

exist. Now, assuming that the B1 population is being exploited and utilized, Formula (4.36) changes to: dB1 ¼ F ðB1 , B2 Þ  qfB1 dt dB2 ¼ GðB1 , B2 Þ dt

ð4:37Þ

in which. f is the fishing effort; and. q is the catchability coefficient. Figure 4.9b, c show the situation when the level of fishing effort becomes increasingly greater. When the fishing effort f increases, the B1 isocline

4 Bioeconomic Model of Fishery Resources Under Ecological and Technological. . .

a

b

B2

K2

c

B2

K2

dB1 =0 dt

199

B2

K2

B2f

dB2 =0 dt

Saddle point B2f r1

b

K1

B1

r2

b

B1f

B1

B1f

r1

b

B1

Fig. 4.9 Effect of fishing on population size in a competitive state. (a) f ¼ 0, (b) f > 0, (c) f is very large

B2 ¼


 r1 B qf 1 1  α α K1

ð4:38Þ

moves downward in parallel. For a small f value, there is a single equilibrium state at (B1f, 0), wherein:
 qf B1f ¼ K 1 1  r1

ð4:39Þ

At f ¼ f1, because the two isoclines intersect at (0, K2), bifurcation appears. When the f value is larger, the case described in Fig. 4.9b appears. There, the two stable equilibrium states at (Blf, 0) and (0, K2) are separated by a saddle-point equilibrium state. When f ¼ f2, another bifurcation appears, wherein B1f2 ¼ r2/β; when f > f2, the B1 population is annihilated; this type of annihilation is not directly due to fishing but is due to the effect of mutual competition. Figure 4.10a represents the function that regards the equilibrium level of B1 as the fishing effort f. The corresponding yield-fishing effort curve, Y ¼ qfB1f, is represented by Fig. 4.10b or Fig. 4.10c, depending on the relationship between the values of f2 and f ¼ r/(2q). If f2 > r/(2q), the MSY is located at the minimum point of the yield-fishing effort parabola and corresponds to a stable equilibrium state of the system given by Formula (4.37); however, when f2 < r/(2q), the MSY appears on the bifurcation point f2 itself and, therefore, is unstable. The practical significance of the latter situation is very clear. It is assumed that there must be mutual competition in the fishery development stage of the B1 population. Biologists use the Schafer model to predict the MSY that appears at f ¼ r/(2q). In fact, the fishery is destroyed before the effort increases to this level, which is particularly surprising because at the time destruction occurs, the yieldfishing effort curve is still increasing. Some people tend to ascribe the destruction to changes in external conditions rather than purely biological mechanisms.

200

X. Chen et al.

a

b B1

B2f

K1 MSY

Unstable branch

f1

f

f2

f1

B1 population at equilibrium

c

r1

2q1

f2

f

sustainable yield f MSY f2 Fig. 4.10 The effect of harvesting in a situation of competition between species, (a) B1 population at equilibrium, (b) sustainable yield fMSYf2

4.2.1.2

Simultaneous Exploitation of Two Populations

When two populations are exploited simultaneously, according to Formula (4.37), we have
 dB1 B ¼ F ðB1 , B2 Þ  h1 ðt Þ ¼ r 1 B1 1  1  αB1 B2  q1 fB1 dt k1
 dB2 B ¼ GðB1 , B2 Þ  q2 fB2 ¼ r 2 B2 1  2  βB1 B2  q2 fB2 dt k2

dB2 dt

ð4:40Þ

1 Note, Formula (4.36) and Y ¼ qfB are in equilibrium states when dB dt ¼ 0 and ¼ 0, and let r1 ¼ a1, r1/k1 ¼ B1 and r2 ¼ a2, r2/k2 ¼ B2. Therefore, we have

Y B1 ¼ a1 B1  b1 B1 2  αB1 B2

4 Bioeconomic Model of Fishery Resources Under Ecological and Technological. . .

Y B2 ¼ a2 B2  b2 B2 2  βB1 B2

201

ð4:41Þ

The total yield Y of the two populations is given by the following formula Y ¼ Y B1 þ Y B2

ð4:42Þ

Under the premise of describing the interspecific relationship, this simple relationship and its results are obtained, which are of reference value to the fishery management of multiple populations and the expansion of the equation. The equation indicates that when the yield Y for the rate of change in the numbers of any one population is equal to 0, the yield reaches a maximum. For a system composed of two populations, we have: δY ¼ a1  2b1 B1  ðα þ βÞB2 ¼ 0 δB1 δY ¼ a2  2b2 B2  ðα þ βÞB1 ¼ 0 δB2 Find: B1 max ¼

2a1 b2  a2 ðα þ βÞ 4b1 b2  ðα þ βÞ2

ð4:43Þ

B2 max ¼

2a2 b1  a1 ðα þ βÞ 4b1 b2  ðα þ βÞ2

ð4:44Þ

Formulas (4.43) and (4.44) show that B1max and B2max are determined by the parameters obtained in the equations. To achieve the optimal allocation of fishery resources between competing populations, the maximization of the present value of net profits is realized. Then, the objective function is established: Z1 PV ¼

eδt f½p1  c1 ðB1 Þh1 ðt Þ þ ½p2  c2 ðB2 Þh2 ðt Þgdt

ð4:45Þ

0

This objective function should satisfy the state equations in (4.36). Because the calculation for the optimal harvesting strategy for competing populations is comparatively cumbersome, according to the optimal control theory, we can find: ½p1  c1 ðB1 ÞF B1 þ ½p2  c2 ðB2 ÞGB1  c01 ðB1 ÞF ðB1 , B2 Þ ¼ δ½p1  c1 ðB1 Þ

202

X. Chen et al.

½p1  c1 ðB1 ÞF B2 þ ½p2  c2 ðB2 ÞGB2  c02 ðB2 ÞGðB1 , B2 Þ ¼ δ½p2  c2 ðB2 Þ ð4:46Þ The optimal equilibrium population size levels for B1* and B2* can be found by the above formula, wherein FB1, FB2, GB1, and GB2 are the partial differentials of the functions F (B1, B2) and G (B1, B2) to B1 and B2, respectively.

4.2.1.3

Case Analysis

Figure 4.11 represents the dynamic change process for resource amount, yield, and economic rent of a fishing fleet of a fishery comprising two competitive species. As seen in Fig. 4.11, in a situation where there is no fishery, the resources of the dominant competitor are higher than the resources of the subordinate species. Assuming that the price of the dominant species is higher than that of the subordinate species, as the fleets for catching the dominant species increase, resource amounts decrease; this way, the ecological habitat space (such as habitat, food, etc.) is released accordingly. At this time, an increasing trend appears in the resources and yield of the subordinate species, which continues until a decline appears in yield. In an open entry to fishing scenario, the bioeconomic equilibrium point is generated at a higher level of fishing, determining that the resources of the dominant species are at a lower level (as shown in Fig. 4.11a). Suppose that the price of the subordinate species is sufficiently high and the dominant species is more easily affected than is the subordinate species; then, the dominant species will trend toward extinction. Notably, the position of the bioeconomic equilibrium point BE for a fishery composed of two competitive species depends on the parameter characteristics in terms of biology (such as growth rate) and economy (such as market price) as well as the mutual influence between the two species.

4.2.2

Predator–Prey State

4.2.2.1

Theoretical Derivation

According to the logistic equation established by Leslie and Gower (1960), the predator–prey model can be used to describe the mutual influence between ecologies. Assuming X is the prey and Y is the predator:   dBX B ¼ r X Bx 1  X  β 1 β 2 dt K
 dBY BY ¼ r Y BY 1  dt β2 BX

ð4:47Þ ð4:48Þ

4 Bioeconomic Model of Fishery Resources Under Ecological and Technological. . .

(a) Resource amount and time

(c) Yield and time

(e) Rent and time

203

(b) Resource amount and effort

(d) Yield and effort

(f) Rent and effort

Fig. 4.11 The dynamic change process in (a and b) resource amount, (c and d) yield, and (e and f) economic rent of a fishery composed of two competitive species (Seijo et al. 1998)

In these equations, the growth of the prey is affected by the environmental carrying capacity K of the system and the predator. The growth of the predator (species Y) is a function of its intrinsic rate of increase in the population and the number of prey. The coefficient β2 connects the number of predators with the maximum resource amount of the prey. Figure 4.12 represents the dynamic changes in resource amount, effort, yield, and economic rent over time for two fleets that are fishing for fishery species with an ecologically existing predator and prey relationship. As seen in Fig. 4.12, a direct increase in effort to fish for the prey will reduce its resource amount, thereby expanding the resource space of the predator. Thus, an increase in effort toward the prey similarly decreases the catch and economic income from fishing for the predator. The bioeconomic equilibrium and maximum yield of the prey will depend

204

X. Chen et al.

3 500

300

1 000

250

100

200

3 000

150

2 500

100

Predators

50

2 000 0

10

20

30

40

Yield (thousand tons)

Prey

(thousand tons) Resource amount

Resource amount (thousand tons)

4 000

Fleet 1 Prey

Fleet 1 Predators

10 1

Fleet 2

0.1

Predators

0.01

50

0

10

20

Time (year)

(a) Resource amount and time

Rent (thousand CNY)

Effort (number of vessels)

Fleet 1

400 300 200

Fleet 2

100 0 0

10

20

40

50

(b) Yield and time

600 500

30

Time (year)

30

Time (year)

(c) Effort and time

40

50

10 8 6 4 2

000 000 000 000 000 0 –2 000 –4 000

Fleet 1

Fleet 2

0

10

20

30

40

50

Time (year)

(d) Rent and time

Fig. 4.12 Dynamic changes in resource amount, effort, yield, and economic rent in a predator and prey situation, (a) resource amount, (b) yield, (c) effort, and (d) rent (Seijo et al. 1998)

on the degree of fishing effort exerted on the predator. Changes in the predator are extremely critical. If a certain predator can prey on multiple food types, it can transfer to and prey on different food.

4.2.2.2

Case Analysis

The following example is a computer simulation that simultaneously considers two influences, that is, technology and ecology (predator–prey) (see Table 4.4 for the parameters); see Fig. 4.12 for the dynamic change process. During the first 15 years of fishery exploitation, the resource amounts of both species decline due to the increase in fishing effort. During the initial stage, the fishing effort that Fleet 1 exerts on the prey also affects the resource amount of the predator, and a downward trend appears. A sharp increase in the fishing effort of Fleet 1 causes an increase in the yield of the predator (bycatch) and prey (main catch) species. As a result, the economic rent of Fleet 1 is higher than that of Fleet 2 in the first 15 years. Biological and economic characteristics determine the dynamic change in the bioeconomy that affects the predator and prey. In this example, reducing the prey will reduce the resource amount of the predator, but the situation is not the same in reverse.

4 Bioeconomic Model of Fishery Resources Under Ecological and Technological. . .

205

Table 4.4 Parameters defined at the beginning of the simulation run directed to evaluate the dynamic behavior of a prey and a predator captured by two technologically interdependent fleets (Seijo et al. 1998) Parameter Prey r Predator r Prey K Predator K Fleet 1, predator q Fleet 2, predator q Fleet 1, prey q Fleet 2, prey q

4.3

Value 0.36 0.15 4,000,000 tons 275,000 tons 0.0004 0.0 0.0002 0.0004

Parameter Unit price of prey Unit price of predator Unit cost of Fleet 1 Unit cost of Fleet 2 Dynamic parameter of Fleet 1 Dynamic parameter of Fleet 2 Predator parameter β1 β2

Value 60 CNY/ton 275 CNY/ton 60,000 CNY 9000 CNY 0.00001 0.000015 0.00000001 0.069

Optimal Allocation of Fishery Resources in a Comprehensive Bioeconomic Model

Fishery resource exploitation is a very complicated systematic project that not only involves fishery resources themselves but also includes aspects such as economic benefits, social benefits, market supply, management rules, and the marine environment. Therefore, in building a comprehensive bioeconomic model of fishery resources, comprehensive consideration needs to include fishery resources, fishery resource managers, and fishery resource exploitation, as well as uncertain factors in fishery resource exploitation and management processes (Fig. 4.13).

4.3.1

Composition of a Fishery Resource System

Fishery production and management are complicated systematic projects that not only involve biological resources but also involve various aspects such as the economy and society. Therefore, in analyzing the optimal allocation of resources, fishery systems can be divided into three subsystems, that is, the resource subsystem, the resource user subsystem, and the resource manager subsystem (as shown in Fig. 4.13). Fishery resources include (1) changes in the biological parameters of fish populations over the entire life cycle, such as propagation, recruitment, growth, and death, etc.; (2) environmental factors that affect changes in fishery resources and the temporal and spatial dynamic distribution of populations; and (3) ecological relationships such as competition between species, symbiotic ecology, coexistence, parasitism, and predator and prey relationships. Fishery resource management includes various measures, implementation standards, and management strategy

206

X. Chen et al. Biological and non-biological influencing factors

Fishery resources Resources

Length, weight, fecundity, recruitment, growth rate, mortality, etc.

Catch

Fishing effort

Operating costs

Export

costs

volume

Fishery management

Processing

Landing price

Uncertainty analysis

Catch Catch processing

Bayesian theory

Fishery resource exploitation Fishing effort, type of fleet, fishers, fishing gear and fishing method, catchability coefficient, etc.

Fishery income, employment rate, livelihood, export volume, etc.

Fishery management strategies Fishing license, catch quota, minimum catchable specification, closed fishing season, closed fishing area, fishing gear restrictions, etc.

Management strategy evaluation Bayesian and non-Bayesian decision theory, limit and target reference point theory, Pontryagin’s maximum principle

Fig. 4.13 Schematic diagram of a comprehensive bioeconomic model of fishery resources (Seijo et al. 1998)

evaluations formulated by fishery departments. Fishery resource exploitation includes fishing effort, type of fleet and number of fishermen, selectivity of the fishing gear, operating costs, catch prices, processing and utilization, etc. Uncertain factors in fishery resource exploitation and management processes mainly originate from (1) dynamic changes in the abundance of fishery resources; (2) model structure; (3) model parameters; (4) fishery behavior regarding resource exploitation; (5) future status of the marine environment; and (6) future economic, political, and social conditions.

4 Bioeconomic Model of Fishery Resources Under Ecological and Technological. . .

207

4.3.2

Establishment of a Comprehensive Bioeconomic Model of Fishery Resources

4.3.2.1

Establishment of a Population Dynamics Model

According to the model by Beverton and Holt (1957), the following stochastic model can be established: Ri ðt Þ ¼

HSi ðt Þ  R max i þ RNi ðt Þ H max i 2 þ HSi ðt Þ

ð4:49Þ

wherein Ri(t) is the recruitment of population i; Hmaxi is the maximum number of eggs laid by the spawning population i; Rmaxi is the maximum observed value of recruitment; HSi(t) is the estimate of the eggs laid by the spawning population i at time t; and. RNi(t) is the random variable of normal distribution. HSi(t) can be estimated for each spawning period as the product of the spawning stock abundance in time t by the proportion of females (Hi) and the corresponding age-specific average fecundity (FECij)::

HSi ðt Þ ¼

MAGE Xi

H i N ij ðt ÞFECij

ð4:50Þ

j¼si

in which MAGEi is the maximum observed age in population i; and. si is the age at which population i first matures. The biomass of each population can be calculated using the following formula: Bi ðt Þ ¼

X

N ij ðt ÞW ij

ð4:51Þ

j

The average individual weight for each age group is determined using W ij ¼ aLbij (a and b are parameters), wherein Lij can be obtained by the growth equation of Von-Bertalanffy :   Lij ¼ L1i 1  eðki ðttoi ÞÞ In the formula,

ð4:52Þ

208

X. Chen et al.

Lij is the length of the fish of species i at age j; L1i is the maximum body length of species i; ki is the growth parameter of species i; and, toi is the theoretical age when the body length of species i is zero. According to the gamma probability density function, the use of a “distributed delay model” can simulate the spawning and hatching periods: dγ 1 g ½HSi ðt Þ  γ 1 ðt Þ ¼ DELHS dt

ð4:53Þ

dγ 2 g ½γ ðt Þ  γ 2 ðt Þ ¼ DELHS 1 dt ⋮⋯⋮⋯⋮  dγ g g

γ g1 ðt Þ  γ g ðt Þ ¼ DELHS dt In the formula, HSi(t) is the estimate of the eggs laid by the spawning population i at time t, that is, the input to the delayed process; γk(t) is the output of the delayed process, that is, the number of eggs hatched at time t; γ1(t), γ 2(t), . . ., γ g1(t) are instantaneous rates; DEHHS is the estimated time for egg maturation; and. g is the order of the delay, which represents the Gamma probability density function parameter.

4.3.2.2

Fishing Operation Model

Over the long term, the change in fishing effort over time can be expressed using the equation published by Smith (1969): " # X  dfm ¼ Pij qijm Bij ðt Þ  cm f m ðt Þ dt ij

ð4:54Þ

whereas the short-term (seasonal) dynamic changes in the fleet can be expressed using a distributed delay model to reflect the number of operating fishing vessels that have entered over the entire fishing season. The catch by fleet m at time t according to the species and size caught can be expressed using the following formula: Y ijm ¼ qijm f m ðt ÞBij ðt Þ þ RVm ðt Þ

ð4:55Þ

4 Bioeconomic Model of Fishery Resources Under Ecological and Technological. . .

209

wherein RVm(t) is an exponentially autocorrelated random variable which accounts for the uncertainty in the catch over time, and can be generated by using other suitable probability density functions. The catchability coefficient (qijm) according to species, size, and type of fleet can be established using the concept described by Baranov (1918): 
 aream  RETijm qijm ¼  ln 1  AREA

ð4:56Þ

In the formula, AREA is the area of the sea area where the population is distributed; RETijm represents the residual rate of fishing gear for fleet m’s fishing gear for species i at age j, which can be found by using the curve for fishing gear selectivity; and. Aream is the daily swept area. The residual rate of fishing gear according to specification size can be estimated using the following formula (Sparre et al. 1989): RETijm ¼

1 S1im S2im Lij Þ ð 1þe

ð4:57Þ

wherein S1im and S2im are, respectively,


S1im

3 ¼ Lim 50% ln Lim 75%  Lim 50% S2im ¼



S1im Lim 50%

wherein Lim50% and Lim75% are the body lengths of fish caught by fleet m when the residual rate of the fish reaches 50% and 75%, respectively.

4.3.2.3

Benefit-Cost Model

The cumulative economic profit π m(t) is: tZ þDT

π m ðt þ DTÞ ¼ π m ðt Þ þ

ðTRm ðτÞ  TCm ðτÞÞdτ

ð4:58Þ

t

wherein TRm(t) and TCm(t) are the total income and total cost of fleet m, respectively. Total income can be calculated from the catch of the target species and the

210

X. Chen et al.

bycatch species and their prices, and the total cost takes into account fixed costs and variable costs as well as the opportunity costs of labor and capital.

4.3.2.4

Models in Terms of Social Benefits

1. Social employment model. The employment situation directly generated by fisheries can be expressed using the following formula: EMPðt þ DTÞ ¼

X ð f m ðt þ DTÞFISHm Þ

ð4:59Þ

m

In the formula, FISHm is the average number of fishers in fleet m. 2. Contribution to food model. The contribution of fisheries to food for coastal residents (ALIMi(t + DT)) can be expressed using the following formula: tZ þDT

ALIMi ðt þ DTÞ ¼ ALIMi ðt þ DTÞ þ

! XX ð 1  εÞ Y ijm ðτÞ dτ j

t

ð4:60Þ

m

wherein ξ is the proportion of export catch of species i caught by fleet m; therefore, 1  ξ is the proportion used in the domestic market. 3. Earning foreign exchange through export model. The annual export amount of fisheries can be estimated using the following formula: tZ þDT

EXPi ðt þ DTÞ ¼ EXPi ðt Þ þ t

! XX pij Y ijm ðτÞ dτ j

ð4:61Þ

m

In the formula, pij is the export price of species i at specification (or age) j. A more complete model should also include processing departments (for details, see Willmann and Garcia 1985).

4.3.3

Model Parameters and Information

The data and information that the model should include are detailed in the following section:

4 Bioeconomic Model of Fishery Resources Under Ecological and Technological. . .

211

1. Biological parameters. Biological parameters include number of individuals according to age or size; sex composition; natural or fishing death coefficient according to age or size; estimated value of the catchability coefficient according to fishing gear or fleet and specified age or size; the growth function and the relationship between body length and weight for each sex; age at first sexual maturity; and average fecundity. If possible, subdivision can be carried out according to age or size. 2. Fishing effort. Fishing effort parameters include type of fishing vessel and main engine; fishing gear used; average number of fishermen per type of fleet; number of fishing vessels per port and fishing season; average distance from the main fishing area to the port; number of effective operating days per voyage; number of days per voyage; and type of bait used. 3. Catch. Catch parameters include number of ports where the target catch was landed; total catch according to species, type of fleet, fishing season, and number of voyages; and size composition of the catch; when there are two or more countries fishing for one resource at the same time or when China is authorized to fish for the same resource, information regarding catch and fishing effort must be reported. 4. Economy. Economic parameters include income per voyage-average prices of target and nontarget fish species (paid to the fishers) and estimated value of the annual catch for target and bycatch species. If a certain target fish species composes the majority of the global supply, then price fluctuations must be included in the estimate. Fishing costs include operating costs, variable costs, fixed costs, and other costs. Operating cost per voyage is based on the normal (such as number of operating days) or effective (such as effective operating hours) operation. Variable costs include fuel, ice, bait, food, vessel repair and maintenance, and damaged fishing gear repair. Fixed costs are the depreciation of the fishing vessel, main engine, and fishing gear, interest repayment of loans, administrative management and insurance costs, and opportunity costs of capital and labor. 5. Other aspects. Other related information and data include annual catch trends; fishing fleets used for maintaining livelihoods; local markets; processing and utilization of the catch; foreign markets; and the export prices for target and nontarget fish species.

4.3.4

Case Analysis

Suppose there is a continuous shrimp fishery with an artisanal fishery that fishes for juveniles and young adult individuals and an industrialized fleet that fishes for adult individuals. In the case of the following fishery management measures, analysis of its bioeconomy is carried out to evaluate the results of these fishery management

212

X. Chen et al.

measures. These fishery management measures (variance factors) are smallest individuals caught for the first time; length of the fishing season; selection of the closed fishing season; and restrictions on operating fishing vessels. Because commercial fishing vessels are not multipurpose, their fixed costs must be taken into account in the closed fishing season. Because it is possible that the strength of the replenished population may emerge 20% higher than the average year, it is necessary to consider a fishing license with an increase of 25%. See Table 4.5 for the main fishery parameters. Figure 4.14 represents the short-term and long-term changes over time in recruitment, fishing effort, yield, and benefit/cost for a hypothetical shrimp fishery under Table 4.5 Bioeconomic parameters of a hypothetical shrimp fishery (Seijo et al. 1998) Parameter Maximum age of the species (year) Age at first sexual maturity

Value 24 months

Age at first fishing by industrialized fleet Age at first fishing by artisanal fishery Average fecundity

3 months

Growth parameter t0

6 months

2 months 1,072,000 individuals 0.27/month 0.03/month

Parameter Operating time for Fleet 1 per month Operating time for Fleet 2 per month Lag time for fishing vessels entering the fishery Average lag time for recruitment transfer Slope/length of price curve

Value 20 days

Price of nontarget fish species Unit cost of Fleet 1

12 days 0 2 months 700

Progressive length

Unit cost of Fleet 2

Progressive weight Fleet 1’s daily sea-sweeping area (km2) Fleet 2’s daily sea-sweeping area (km2) Fleet 1’s 50% selectivity length Fleet 2’s 50% selectivity length Fleet 1’s 75% selectivity length Fleet 2’s 75% selectivity length Distribution area (km2) of species Type of fleet

Time of delay Simulation time

318 CNY/ton 65,000 CNY/vessel/ year 3000 CNY/vessel/ year 2 months 3 years

Second recruitment time

November

First recruitment time

April

Start of operating time

March

Duration of fishing season

10 months

Maximum observed recruitment Dynamic parameter of Fleet 1

76,900,000 individuals 0.000001

Dynamic parameter of Fleet 2 Lowest price

0.0000015 150 CNY/ton

c

6000 4000 2000 0 0

10

20 30 Time (month)

b

15000 800

10000

400

d

200 150

5000 0

10

10

100 50 0

0

35 30 25 20 15 10 5 0

10

20 30 Time (month)

f

Industrialized fleet

Profit Cost

10

30 20 Time (month)

0

10

100

30 20 Time (month)

Artisanal fleet

80

Profit Cost

60 40 20 0

0

0

20 30 Time (month)

Artisanal fleet

thousand CNY

thousand CNY

20000

1200

0

5

e

25000

Industrialized fleet

15

0

1600

213

(days) — Artisanal effort

8000

25 20

Yield (ton)

10000

First recruitment Second recruitment

--Industrialized effort (days)

14000 12000 10000 8000 6000 4000 2000 0

Yield (ton)

Recruitment at first spawning (thousand)

a

Recruitment at second spawning (thousand)

4 Bioeconomic Model of Fishery Resources Under Ecological and Technological. . .

0

10

20 30 Time (month)

Fig. 4.14 Short-term and long-term changes in (a) recruitment, (b) fishing effort, (c, d) yield, and (e, f) benefit/cost under the action of an artisanal fleet and industrialized fleet exploiting a hypothetical shrimp fishery (Seijo et al. 1998)

the joint action of an artisanal fleet and an industrialized fleet. In a short-term situation, Fig. 4.14a, b represent the seasonal changes in recruitment and fishing effort, respectively. In a situation in which the length of the fishing season is 10 months and the start time for fishing is in the third month, the effect of fishing on both recruitment populations is comparatively widespread; the resources for the first recruitment population are 13.2 million, and the resources for the second recruitment population are 7.8 million. If the start time for fishing changes, then the recruitment time for both populations is affected, and their recruitment strengths are also affected. The aforementioned results show the need for comprehensive evaluations and analyses of the effect of start time and length of the fishing season on fishery resources to facilitate maintaining and increasing the economic benefits of fisheries. Over time, the reduction appears in the yields for both fleets (Fig. 4.14c, d). However, because the operating costs of artisanal fisheries are lower, certain economic rent can be obtained. Figure 4.14e, f represent the changes and fluctuations in the costs and benefits for the two fleets over time. In an open entry to fishing

214

X. Chen et al.

situation, the total rent obtained during the entire fishing season determines the longterm changes and fluctuations that will occur to the operating fishing vessels. Owing to the negative fishing benefits, starting from the second year, a decline appears in the fishing fleets of both fisheries. Through the aforementioned analysis, this shrimp fishery demonstrates a clear trend of overinvestment and overexploitation.

References Armstrong CW (2007) A note on the ecological—economic modelling of marine reserves in fisheries. Ecol Econ 62(2):242–250 Baranov FI (1918) On the question of the biological basis of fisheries. Nauchn Issled Ikhtiologicheskii Inst Izv 1:81–128 Beverton RJH, Holt SJ (1957) On the dynamics of exploited fish populations. Fish Invest Lond Ser II 19:1–533 Charles AT, Reed WJ (1985) A bioeconomic analysis of sequential fisheries: competition, coexistence, and optimal harvest allocation between inshore and offshore fleets. Can J Fish Aquat Sci 42(5):952–962 Doyen L, Thebaud O, Béné C et al (2012) A stochastic viability approach to ecosystem-based fisheries management. Ecol Econ 75:32–42 Flaaten O (1998) On the bioeconomics of predator and prey fishing. Fish Res 37(1):179–191 Gause G (1935) Experimental demonstration of Volterra’s periodic oscillations in the numbers of animals. J Exp Biol 12:44–48 Guillen J, Macher C, Merzereaud M et al (2013) Estimating MSY and MEY in multi-species and multi-fleet fisheries, consequences and limits: an application to the Bay of Biscay mixed fishery. Mar Policy 40:64–74 Ives MC, Scandol JP, Greenville J (2013) A bio-economic management strategy evaluation for a multi-species, multi-fleet fishery facing a world of uncertainty. Ecol Model 256:69–84 Kompas T, Che TN (2006) Economic profit and optimal effort in the Western and Central Pacific tuna fisheries. Pacific Econ Bull 21(3):46–62 Leslie PH, Gower JC (1960) The properties of a stochastic model for the predator-prey type of interaction between two species. Biometrika 47:219–234 Ruttan LM, Gayanilo JrFC, Sumaila U R, et al (2000). Small versus large-scale fisheries: a multispecies multi-fleet model for evaluating their interactions and potential benefits. In: Pauly D, Pitcher TJ (Eds.) Methods for evaluating the impacts of fisheries on North Atlantic Ecosystems. Fish Centre Res Rep, 8(2): 64–78 Seijo J C, Defeo O, Salas S (1998) Fisheries bioeconomics—theory, modeling and management. FAO Fisheries Technical Papers 368 Smith VL (1969) On models of commercial fishing. J Polit Econ 77:181–198 Sparre P, Ursin E, Venema SC (1989) Introduction to tropical fish stock assessment. Part 1: Manual. FAO Fish Tech Pap 306(/1):337 Ulrich C, Le Gallic B, Dunn MR et al (2002) A multi-species multi-fleet bioeconomic simulation model for the English channel artisanal fisheries. Fish Res 58(3):379–401 Willmann WL, Garcia SM (1985) A bioeconomic model for the analysis of sequential artisanal and industrial fisheries for tropical shrimp (with a case study of Suriname shrimp fisheries). FAO Fish Tech Pap (270):1–49

Chapter 5

Assessment of the Sustainable Use of Fishery Resources and an Early Warning System Xinjun Chen and Qi Ding

Abstract Sustainable utilization of fishery resources is the essence and core issue of sustainable development of fishery. Without sustainable utilization of fishery resources, sustainable development of fishery can not be achieved. Therefore, comprehensive evaluation of sustainable utilization of fishery resources can objectively reflect the development potential of fishery resources, and track and monitor the implementation process of sustainable utilization strategy of fishery resources in various countries. As a new management mode and method, early warning system has its unique practical value in the management of marine fishery resources, because fishery resources are more vulnerable to the interference of external natural disasters, with higher risk and greater uncertainty than other resources. Therefore, this chapter systematically introduces the basic theories and methods of the evaluation and early warning system of the sustainable utilization of fishery resources. The main contents are as follows: (1) the basic principles and methods of the sustainable utilization of fishery resources, briefly introducing the concept, connotation, influencing factors and objectives of the sustainable utilization of fishery resources; (2) the basic theories and methods of the evaluation of sustainable utilization of fishery resources, putting forward the general steps of sustainable use evaluation, quantitative methods of comprehensive index evaluation, and sustainable use evaluation based on ecological nutrition level; (3) the basic theory of early warning system for sustainable use of fishery resources; and (4) the status of sustainable use of global marine fishery resources is analyzed as an example. Keywords Fishery resources · Sustainable utilization evaluation · Early warning system

X. Chen (*) College of marine sciences, Shanghai Ocean University, Lingang New city, Shanghai, China e-mail: [email protected] Q. Ding Yellow Sea Fisheries Research Institute, Chinese Academy of Fishery Sciences, Qingdao, Shandong, China © China Agriculture Press 2021 X. Chen (ed.), Fisheries Resources Economics, https://doi.org/10.1007/978-981-33-4328-3_5

215

216

5.1

X. Chen and Q. Ding

Significance and Role of Assessments of the Sustainable Use of Fishery Resources

In fishery resource economics, the sustainable use of fishery resources is an extremely important research topic. However, in research on the sustainable use of fishery resources, the following are extremely important and practical issues: evaluating the sustainable use of fishery resources; determining the evaluation basis, methods, and standards; and establishing an evaluation system to comprehensively and objectively reflect various aspects of the sustainable use system for fishery resources to provide a scientific basis for fishery resource management and decision-making. In Chapter 14 of China’s Agenda 21, “Natural Resource Protection and Sustainable Use,” in the second solution field, “Promoting a Sustainable Development Impact Assessment System for Natural Resource Management and Decision-making,” it was proposed that “the sustainable use of natural resources not only has to determine and implement the ‘best policies’ established on the basis of broad information and carry out effective use and management of natural resources in a comprehensive and sustainable manner but also has to establish a policy analysis mechanism to facilitate the ability to continuously adjust or evaluate existing and future policies and review how natural resource management policies are favorable or unfavorable for overall sustainable development”; furthermore, “sustainable development is a dynamic process that requires unceasing adjustment as economic and environmental factors change. The use of sustainable development impact assessments will become an important means of policy analysis.” For this reason, “the formulation and use of a sustainable development index system and a determination method, the development of a sustainable development impact assessment model,” “the formulation of sustainable development impact assessment guidelines and management procedures involving the policy, planning, and exploitation activity assessments of the main natural resources,” and so on, are required. Carrying out research on the sustainable use assessment of fishery resources is extremely important. The sustainable use of fishery resources is the essence and core issue of the sustainable development of fisheries. Without the sustainable use of fishery resources, the sustainable development of fisheries is out of the question. Therefore, a comprehensive evaluation of the sustainable use capacity and level of fishery resources can objectively reflect the development potential of fishery resources, and one can cultivate and develop coordinated efforts to track and monitor the implementation process of China’s strategy for the sustainable use of fishery resources. Its significance and role are manifested in the following aspects: 1. The strategy must include a comprehensive and objective evaluation of the status of fishery economic development. Aquatic products have become an indispensable source of protein for people. In some coastal areas, fisheries play an important role in socioeconomic development, such as by providing numerous

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

2.

3.

4.

5.

217

employment opportunities and generating high added value. However, the issues faced by marine fisheries are also getting increasingly more attention, such as the overfishing of resources, large excess fishing capacity, discard of bycatch, use of destructive fishing gear and methods, degradation of habitats, and pollution of the marine environment. These have seriously restricted the sustainable use of fishery resources. Therefore, carrying out scientific evaluations of the sustainable use of fishery resources is extremely important to the objective reflection of the development status and potential of the fishery economy. The strategy must include evaluations on the current operating status for the sustainable use of fishery resources. By evaluating the entire system for the sustainable use of fishery resources, the influencing factors in the operating process that are in a good state of sustainable development and the influencing factors that have hidden dangers and impede sustainable development can be found. Furthermore, the degree of coordination between various fields of the sustainable use system for fishery resources can be comprehensively determined. The evaluation of the current status of the sustainable use of fishery resources can judge and measure the current level of sustainable use of fishery resources and the degree to which the evaluation goals are achieved and analyze the favorable conditions and unfavorable conditions, which provides a scientific basis for the government and the public to understand the current status of fishery resource utilization and provides a scientific basis for the reasonable utilization of fishery resources. The strategy must include evaluations and monitoring of the changing trends and rate of change regarding the sustainable use of fishery resources. By applying continuous sustainable use assessment data over a long time period, the change trends for the various aspects of society, the economy, and resources and the environment related to the sustainable use system for fishery resources are comprehensively reflected, as well as the favorable and unfavorable factors and their degrees of influence. The strategy must include comprehensive and objective evaluations of the future development potential of fishery resources. Fishery resource reserves determine the development potential of fisheries in a country or a region. By evaluating the sustainable use of fishery resources, the interrelationship between the state of resources and the state of the economy can be better understood in a comprehensive and detailed manner, the mutual influence between the dynamic process of the resources and the dynamic process of the economy can be better understood, and the degree to which fishery resources guarantee long-term growth of the fishery economy can be accurately appraised, thereby providing a clearer understanding of the potential of long-term development. The strategy should provide a basis for optimized fishery resource management and decision-making. By evaluating sustainable use, the current status, changing trends, and the degree of change in each subsystem in the sustainable use system for fishery resources are comprehensively reflected. This information helps all levels of government and competent fishery authorities to supervise fishery resources and discover unfavorable links that hinder and affect sustainable

218

X. Chen and Q. Ding

development, and, thus, determine the reasons for such hindrance in order to correct nonsustainable use behaviors, providing a scientific basis for optimized fishery resource management and decision-making. 6. The strategy should provide conditions to carry out early warning for the sustainable use of fishery resources. In a sustainable development system, various aspects of social, economic, resource, and environmental factors have certain reasonable operating areas. If the reasonable scope of the normal system is exceeded, sustainable development may collapse. Therefore, on the basis of establishing scientific warning standards related to various influencing factors, sustainable development evaluation methods are used to establish an early warning system for the sustainable use of fishery resources according to collected data. This early warning system is able to facilitate the timely adoption of measures that can aid in the development of fishery resources that operate within a sustainable zone. Furthermore, by implementing an early warning system for fishery resources, the macromanagement of fishery resources can develop from delay management to advance management. In addition, dynamic management can be carried out in the system operating process to fine tune, at any time, issues that emerge in fishery resources in order to guarantee that the utilization of fishery resources does not deviate from the sustainable development trajectory.

5.2

Review of the Main Sustainable Development Evaluation Models

To assess sustainable development capacity, specific operable and monitorable means of measurement and evaluation must be established, that is, evaluation of the sustainable development capacity and index. Since the 1980s, the discussion regarding sustainable development indexes and evaluation methods has been ongoing, and various results have been obtained. Since the 1990s, some intuitive and more easily operated sustainable development index systems and quantitative evaluation and calculation methods and models have been proposed internationally and have gained preliminary application in the sustainable development evaluation in some countries and areas. By analyzing the connotations, characteristics, and the calculation methods of various indexes for sustainable development currently available internationally, models for the evaluation of sustainable development can be preliminarily divided into three categories: 1. Index system constructed under the guidance of system theory and methods (or referred to as the evaluation method for the comprehensive index system)— For example, the framework by which the “driving force-state-response” (DSR) comprehensive evaluation index system proposed by the United Nations Commission on Sustainable Development analyzes a sustainable development system is pressure-state-reflection, which indicates the natural attributes of the system. It

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

219

is at present a comparatively influential and widely applied sustainable development evaluation tool. In addition, there is also the “barometer of sustainability” model proposed by Prescott (1996), the “China Sustainable Development Indicator System” proposed by the Sustainable Development Research Group of the Chinese Academy of Sciences, and so on (Chen 2014). 2. Index system based on environmental and monetary analysis (or referred to as the monetary evaluation model)—for example, the new wealth of nations and sustainable income proposed by the World Bank, the “Index of Sustainable Economic Welfare” (ISEW), and the “Genuine Progress Indicator” (GPI) (Chen 2014). 3. Biophysical quantity measurement indexes—For example, the concept of the “ecological footprint” and its model proposed by Wackernagel and Rees (1996) and the evolution of Enhancement Carrying Capacity Options (ECCO) model proposed by Malcom Slesser (1990).

5.2.1

Monetary Evaluation Model

The monetary evaluation model extends market value to the nonmarket scope by simulating the market, urging people to show their preference for nonmarket products by way of “willingness to pay,” and assigning market value to comparable products and labor services for such nonmarket results as the environment, ecology, entertainment, and so on, to compare the development activities in different fields. That is, a common monetary unit is used to measure the products, and the results are aggregated into a comprehensive development index. The core idea of the monetary evaluation model is to use the amount of economic value to measure the natural resource consumption and environmental loss caused by natural resource stocks or human activities through assessment and calculation methods, use benefit-cost analysis methods to determine the allocation of resources, and evaluate the actual effects of human activities. At present, the main representative methods are the new wealth of nations of the World Bank, green gross national product (GNP)/sustainable income, and so on.

5.2.1.1

The “Wealth of Nations” Measurement Index of the World Bank

Research by the World Bank started from the concept and connotation of sustainable development, that is, sustainable development should include economic sustainability, ecological sustainability, and social sustainability. Its core idea was that the sustainable growth of the economy had to be established on the capacities for ecological sustainability and social sustainability. Some economists believe that sustainability can be understood as welfare and that resource stocks are the pillars of welfare. Therefore, in accordance with this line of thinking, the World Bank proposed the use of “asset” or “wealth” stocks to measure sustainable development

220

X. Chen and Q. Ding

and designed and developed the new wealth of nations index for use in evaluating the sustainable development status of a country or area. In addition, wealth was expanded to the four major capitals (production capital, natural capital, human capital, and social capital), which jointly constituted the basic conditions for human development. The method by which the World Bank measures the sustainability of each country’s development based on the “wealth of nations” or “national per capita capital” is referred to as the “genuine savings” method. The state of sustainable development is determined by comparing the savings rate with the “loss rates” of natural capital and man-made capital and whether or not they satisfy Hartick’s rule of weak sustainability measurement for sustainable development (Chen 2014). A rough calculation is carried out on the capital stocks of 192 countries in the world. The calculation formula for genuine savings (GS) is as follows: GS ¼ ðS=YÞðδm =YÞðδn =YÞ

ð5:1Þ

In the formula, S represents savings; Y represents income; δm refers to the depreciation of the man-made capital Km; and δn refers to the depreciation of the natural capital Kn. The sustainable development index system of the World Bank provides people with a whole new way of thinking. This index system provides the scientific connotation of sustainable development, can dynamically reflect the sustainable development capacity, and can put the concept of sustainable development into practice, among other advantages. In fact, it is a more thorough economic index that advocates for the use of a total capital stock index to measure sustainable development. It deems that in addition to man-made economic capital, human resources is capital and natural resources is capital, and they can be unified through quantification according to economic value. The sustainable standard of social development is the sum of all types of capital that does not decrease with time, which emphasizes the interconnection and mutual complementation between various capitals.

5.2.1.2

Green GNP/Sustainable Income

Reflecting the cost information of natural resources and the environment in a traditional national economic account is an important aspect of research on sustainable development index systems. In the national economic accounting system currently in effect, the GNP index neither truly reflects the expense of preventing environmental pollution nor considers the expenses from the consumption and depreciation of natural resource stocks and environmental degradation losses thus generating misguidance to economic development, which directly leads to false prosperity at the cost of the rapid deterioration of the stock and quality of

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

221

environmental resources. In this way, although the national economy continues to grow, its environmental resource base continues to weaken. In connection with the shortcomings of the GNP currently in effect, some economists and international organizations have successively proposed methods to improve GNP measurement indexes. The basic approach is to subtract the consumption of resources and the environment from the original GNP index. Sustainable income or green GNP refers to the level of income that must be guaranteed under the premise of not reducing the existing level of capital. Capital includes manufactured capital, human capital, and environmental capital. According to the definition of green GNP, the calculation formula for sustainable income or green GNP is: SI ¼ GNPDm Dn

ð5:2Þ

In the formula, Dm is the depreciation of the manufactured capital; and. Dn is the depreciation of the environmental capital. It is generally believed that GNP itself already contains some distortions in the estimation of environmental losses; for example, GNP does not truly reflect the expense of environmental pollution prevention, and so on. To this end, a more representative calculation formula for green GNP is obtained based on Formula (5.2), that is: SI ¼ GNPðR þ A þ NÞðDm þ Dn Þ

ð5:3Þ

In the formula, R is the environmental restoration expense caused by pollution; A is the pollution control expense or prevention expense; and. N is the expense used in loss from overestimating the value of resources caused by the nonoptimal utilization and exploitation of natural resources. The calculation of sustainable income or green GNP is most suitable for those resource-based economic systems. Because the relationship between this type of economic system and the risk of natural resource degradation is the most direct, it is easier to calculate the sustainable income of this type of economic system; furthermore, it can also provide extremely valuable information and a basis for governmental economic decisions.

5.2.2

Biophysical Quantity Measurement Indexes

Sustainable development mainly deals with the relationship between the economic system and the ecosystem and investigates whether human activities are still within the scope of the carrying capacity of the ecosystem. Therefore, it is necessary to establish specific biophysical quantity evaluation indexes. Measuring the ecological

222

X. Chen and Q. Ding

goals of sustainable development has always been a challenge in research on sustainable development index systems. Some specific biophysical quantity evaluation indexes have been proposed, such as primary productivity, mean trophic level of the catch, ecological footprint, and so on. Currently, the biophysical quantity evaluation methods for sustainable development mainly include the ecological footprint model, mean trophic level of the catch, and the ECCO model.

5.2.2.1

Ecological Footprint Model

Because everyone consumes products and services provided by nature, everyone has an effect on Earth’s ecosystem. As long as human pressure on the natural system is within the scope of the carrying capacity of Earth’s ecosystem, Earth’s ecosystem is safe, and the development of human economy and society is within a sustainable scope. However, how does one judge whether humans are living within the scope of the bearing capacity of Earth’s ecosystem? Wackernagel (1999) improved the method and model of the ecological footprint on the basis of the ecological footprint concept proposed by Wackernagel and Rees (1996). The ecological footprint model mainly assesses the effect of humans on the ecosystem by measuring the amount of natural ecosystems that humans use today to maintain their survival. Its definition is as follows: the ecological footprint of any known population (a person, a city, or a country) is the total area of biological production land and the amount of water resources needed to produce all resources consumed by this population and to absorb all waste generated by this population. By comparing the resources and energy consumption of a country or area with its own ecological capabilities, one can determine whether or not the development of a country or area is within the scope of the ecological carrying capacity and whether or not development is safe. The ecological footprint account model is mainly used to calculate the biological production land area needed to maintain resource consumption and waste absorption under certain population and economic scale conditions. The ecological footprint measures the true land area needed for human survival. Its calculation formula is: EF ¼ Nef

ef ¼

X

aai ¼

X ðci =pi Þ

where i is the type of exchange in commodity and input; pi is the average production capacity of the i type of traded commodity; ci is the per capita amount of consumption of the i type of commodity; aai is the production-type land commodity converted into per capita i type of traded commodity; N is the population number; ef is the per capita ecological footprint; and EF is the total ecological footprint. Wackernagel et al. (1999) utilized the ecological footprint model to analyze and calculate the ecological footprint of 52 major countries and areas around the world. The results showed that to maintain the current level of consumption, each ordinary Canadian needs nearly 7.0 hm2 in biological production land area and 1.0 hm2 in biological production sea area, and that the supply of per capita ecological carrying

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

223

capacity is 9.6 hm2; therefore, there is still 1.6 hm2 of potential. The amount of demand in per capita ecological footprint in China is 1.2 hm2, the supply of per capita ecological carrying capacity is 0.8 hm2; therefore, there is a per capita deficit of 0.4 hm2. These data may have underestimated the actual biological production land area needed by the people of these countries to maintain their current living standards. The excess portion in the ecological footprint needed is mainly obtained by relying on imports and the consumption of natural resources. Calculated according to the world population in 1997, under existing biological production land and marine areas, the per capita ecological footprint is only 2.3 hm2. If 12% of the biological production land area is set aside to protect the other 30 million species on Earth, as recommended by the report Our Common Future by the World Commission on Environment and Development (WCED), then the actual per capita footprint is 2 hm2, and the per capita deficit is 0.8 hm2. In terms of a global scope, the ecological footprint of humans has already exceeded the global carrying capacity by 30%; that is, the current consumption by humans has already exceeded the natural production capacity, and the global natural resource stock is being consumed.

5.2.2.2

ECCO Model

The ECCO model was first proposed by Professor Malcolm Slesser of the University of Edinburgh, United Kingdom. The ECCO model does not carry out quantitative analysis of sustainable development by traditional monetary units but is based upon the measurement of physical forms, uses energy intensity to test economic activities, and uses the joule as the main unit of measurement, thereby having a unified value measurement in the quantitative analysis of sustainable development. The ECCO model connects resource, environmental, and economic factors together to form a comprehensive method, gradually developing into a dynamic simulation model. This model is established based on natural assets and analyzes the interrelationship between the consumption of natural assets and the increase in production assets. The goal of this model is to provide a comprehensive analytical tool and an independent price system to test the results of long-term policy measures, technology choices, and environmental goals. It is a new method for analyzing the long-term coordinated development strategies and technologies of the economy and the environment, thereby becoming a method to evaluate sustainable development. The ECCO model divides economic activities into two parts: increase in wealth and consumption of wealth. Additionally, assets are divided into two types: natural assets and production assets. The ECCO model uses energy conversion analysis and theory. The main unit of measurement for economic activity is a unit of energy—the joule—instead of the traditional monetary unit, thereby overcoming the problems brought by using monetary units, such as currency value differences in different periods, various national currency exchange rates, the interference of man-made factors, and currency depreciation. All monetary units are converted into energy units through specific coefficients, thereby truly reflecting the full value of the

224

X. Chen and Q. Ding

economic activity. However, it is difficult to determine the energy conversion coefficients, and evaluations in terms of entertainment and economic development cannot be very well reflected.

5.2.2.3

Mean Trophic Level of the Catch

The concept of the mean trophic level of the catch was proposed by Pauly et al. (1998). Changes in the trophic level of the catch can reflect changes in the community structure under fishing activities, and it has significance as an indicator for understanding the changes in the structure and function of the marine ecosystem. Therefore, it has been widely used in fishery management to assess the effect of fishing and management effectiveness and to guide the formulation of future fishery policies. According to the statistical data on catches provided by the Food and Agriculture Organization (FAO) of the United Nations, Pauly et al. (1998) found in their study that the global mean trophic level (MTL) has decreased at a rate of 0.1/ 10 years. Based on the assumption that the population’s landing catch quantity is related to the amount of resources in the ecosystem, Pauly et al. (1998) believed that the decrease in MTL shows that fishing has reduced the trophic level of the food web in the ecosystem and proposed “Fishing down marine food webs;” that is, the catch is gradually changing from a long-lived and high-trophic level of bottom feeding fish species to a short-lived and low-trophic level of pelagic and invertebrate species, the biodiversity of the ecosystem has decreased, and fishery exploitation methods have presented unsustainability. The results of this study by Pauly et al. (1998) caused widespread controversy and repercussions worldwide; however, MTL as a biodiversity indicator has been widely used to evaluate the effect of fishing behavior on the structure and function of the ecosystem. The MTL of the catch has been established as one of eight diversity indexes that can be directly used to measure the level of biodiversity (Cury et al. 2005; Walpole et al. 2009). The European Environmental Agency (EEA) takes the MTL of the catch as a fishery health index and support the use of this index in the completion of the Marine Strategy Framework Directive implemented by all European Union member nations before 2012. The EEA proposes that the MTL can economically, simply, and clearly reflect the shortcomings of policies applied to the entire European seas under different scales and that MTL is an appropriate index. In its assessment of the mean tropic level of European marine catches in 2010, the EEA found that the MTL continuously decreased beginning in 1950 until it started to present a small increasing trend beginning in 2000 (Foley 2013). MTL-based assessments have also been applied to the sustainability of fisheries in the Caribbean Sea and in the performance of marine protected areas. The Caribbean Large Marine Ecosystem Project is an intergovernmental working group funded by the Global Environmental Facility that provides sustainable management measures for the coastal nations of the Caribbean large marine ecosystem. This project provides a transboundary assessment of the Caribbean large marine ecosystem to better understand the marine ecosystem and formulate appropriate

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

225

management measures. In a 2011 analysis of the health of regional large marine ecosystems, the Caribbean Large Marine Ecosystem Project used MTL as a key ecosystem index for unsustainable fisheries. The project noted that a decrease in MTL indicates that fishing activities have undermined the functions of the Caribbean coral reef and its ecosystem services (Foley 2013).

5.2.3

Evaluation Method for Comprehensive Index Systems

Whether it is a social development index, economic accounting index, or ecological index, sustainable development indexes alone have shortcomings. For example, wealth flow and the stock index are only weak sustainability indexes because they imply that human capital, natural capital, and man-made capital can completely replace each other. Some scholars believe that some key resources are irreplaceable; therefore, on the basis of a weak sustainability index, some limiting conditions are added, and the quantity, quality, and value of some key resources are not reduced in indexes for measuring sustainability. Moreover, as limiting conditions go from few to many, they constitute a sustainable spectrum from weak to strong. With the increase in index items and the combination of economic, social, and ecological indexes, the index evolves into an index system with more items. The idea of establishing a comprehensive index system for sustainable development is guided by system theory and methods. By establishing a set of multidimensional and multilevel index systems, sustainability is measured from different aspects such as society, the economy, resources, and the environment, and evaluation is carried out on multiple cross-sections of development. As an evaluation model for comprehensive index systems, the sustainable development evaluation method is more commonly used internationally. The following provides a review of evaluation models for comprehensive index systems proposed by international organizations such as the United Nations Commission on Sustainable Development and by countries such as the United States.

5.2.3.1

The Sustainable Development Index System of the United Nations Commission on Sustainable Development

After the United Nations Conference on Environment and Development in 1992, the United Nations Commission on Sustainable Development (UNCSD) carried out planning on the issue of a sustainable development index, passed the Indicators of Sustainable Development (ISD) project plan in 1995, and introduced the ISD framework and method in 1996, which included 134 indicators that were divided into four categories—social indicators (41), economic indicators (23), environmental indicators (55), and institutional indicators (15)—and each category of indicators includes driving force indicators, state indicators, and response indicators. Each part corresponds to several chapters in Agenda 21, and several indicators are selected in

226

X. Chen and Q. Ding

each chapter. Using Chapter 17 on oceans and all kinds of seas as an example, its goals include the protection of enclosed and semi-enclosed seas and coastal areas and the protection and rational utilization and exploitation of marine biological resources; the specific indicators include driving force indicators (population growth rate in coastal areas, petroleum discharge into the sea, and nitrogen and phosphorus discharge into the sea), state indicators (ratio of maximum sustainable output to actual average output, ratio of various marine biological stocks to maximum sustainable yield, and the algae index), and response indicators (participation in conventions and agreements in terms of marine fisheries, and so on). This index system uses the contents of each chapter in Agenda 21 to propose a preliminary framework for the core indicators of sustainable development. It has highlighted the causal relationship between pressure and the environment, and for social and economic indicators, there is no inevitable relationship in terms of logic between “driving force indicators” and “state indicators.” In addition, there are certain difficulties in defining some indicators, i.e., whether they belong to “driving force indicators” or “state indicators.” In addition, this index system has issues related to the substantial number of selected indicators and uneven decomposition thickness.

5.2.3.2

The Index System of the Organisation for Economic co-Operation and Development

In 1990, the Organisation for Economic Co-operation and Development (OECD) proposed a “pressure-state-response” (PSR) conceptual framework. This framework is presented in Fig. 5.1. Its causal relationship infers that human activities exert pressure on the environment, resulting in the occurrence of changes in the state of the environment; society responds to the environmental changes in order to restore the Pressure

State

Response

Information Human Activities Transportation Energy Industry Agriculture Other

Pressure of Pollution

Resources

Environmental and Natural Resources Water Atmosphere Land Biological Resources Other

Agencies Information

Environmental Response

Sector Response

Fig. 5.1 Pressure-state-response framework (Wu and Yuan 1999)

Administrations Households Enterprises International

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

227

quality of the environment or prevent the degradation of the environment. However, these causal relationships are not one-to-one but, rather, interactive and quite complex. State indicators are used to measure changes in the quality of the environment and the state of the environment caused by human behavior. Pressure indicators are used to measure the pressure placed on the environment. Response indicators show the efforts made by society and established institutions to reduce environmental pollution and resource destruction.

5.2.3.3

The Index System of the Scientific Committee of Problems of the Environment

The Scientific Committee of Problems of the Environment (SCOPE) and the United Nations Environment Programme (UNEP) cooperated in proposing a method for constructing a set of highly comprehensive index systems for sustainable development; the method is mainly composed of three major components: the economy, society, and the environment. For the environmental index, SCOPE believes that it must be connected to human activities; therefore, a conceptual model of the interactions between human activities and the environment was proposed. The following four basic interactions between human activities and the environment exist: 1. The environment provides food and other resources for human social activities. In this process, humans consume resources and biological systems (such as soil, fishery resources, and so on) on which the maintenance of production depends. 2. Natural resources are used in service of the transformation into products and energy. These products and energy will be dissipated and discarded after use, generating pollution and waste, and will eventually return to the natural environment. 3. The natural ecosystem provides the necessary service functions of life support systems, such as the decomposition of organic waste, the circulation of nutrients, and so on. 4. Environmental conditions caused by air and water pollution directly affect human welfare. In connection with the content in the aforementioned four aspects, SCOPE proposed a set of index systems that included 25 indicators. Each indicator is given a different weight, and the weight is determined by the gap between the present value and the target value for sustainable development that one hopes to reach in the future. Therefore, this needs to be premised on the unanimity of people’s opinions on sustainable development goals. Obviously, there are differences in opinion between different countries and areas.

228

5.2.3.4

X. Chen and Q. Ding

The Index System of the United Nations Statistics Division

The sustainable development index system of the United Nations Statistics Division is a modification of the United Nations’ “Framework for the Development of Environment Statistics” (FDES) by Peter Bartelmus of the United Nations Statistics Division (UNSTAT) in 1994. It does not use environmental factors or environmental components as the basis for dividing indicators. Instead, it uses the themes in the chapters in Agenda 21 as the main issues that should be considered in the process of sustainable development to classify the indicators and form the framework for a sustainable development index system (Framework for Indicators of Sustainable Development, FISD). This framework is very similar to the PSR model for the classification of indicators. It is composed of main components such as socioeconomic activities and events, results and effects, and responses to effects, which correspond to “pressure,” “state,” and “response,” respectively.

5.2.3.5

The Sustainable Development Index System of the US Government

In 1996, the U.S. government proposed the “Sustainable America: A New Consensus for Prosperity, Opportunity, and a Healthy Environment” This report proposed the principles for the sustainable development of the United States, totaling 16 items. Furthermore, it proposed a total of ten sustainable development goals for the United States, which were health and the environment, protection of nature, resource management, a sustainably developing society, public participation, and so on. Several indicators were designed and selected under each development goal to describe and reflect the changes in the development of each goal. The goal of protecting nature was to better utilize, protect, and restore natural resources and to obtain long-term social, economic, and environmental benefits. The utilization index of regenerated resources mainly refers to the regeneration rate for fisheries, forests, and other resources.

5.2.3.6

The Sustainable Development Index System of the UK Government

The basis of the framework for the sustainable development index system proposed by the UK government is the definition related to sustainable development in Our Common Future. It has four goals: (1) maintain the healthy development of the economy to improve quality of life while protecting human health and the environment; (2) optimize the utilization of nonrenewable resources; (3) sustainably utilize renewable resources; and (4) minimize the damage caused by human activities to the carrying capacity of the environment and that constitutes risks to human health and biodiversity. There are several special topics under each major goal, and there are

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

229

21 special topics in total. Under each special topic, several key goals and key issues are also contained; under the key goals and issues, key indicators are then selected, and there are more than 120 indicators in total. The indicators are concise, quantitative, and comprehensive. Taking renewable fishery resources as an example, the key goals are to prevent the excessive exploitation and utilization of fishery resources and to ensure the sustainable use of fishery resources; the key indicators are the resource amount, minimum biological acceptable level (MBAL), and catch. The UK sustainable development index system can help solve key problems and characterize the overall trends, but the set indicators can only measure environmental and economic changes and cannot directly address the problem of sustainable development coordination.

5.2.3.7

China’s Sustainable Development Indicator System

Since the 1990s, many domestic scholars have conducted research on sustainable development index systems, acquiring numerous results. China’s Sustainable Development Indicator System, constructed by a research group jointly composed of the National Bureau of Statistics Research Institute and the Administrative Center for China’s Agenda 21, has a certain representativeness. This index system starts with China’s national conditions and was developed in accordance with China’s Agenda 21. According to the Chinese government’s understanding of sustainable development and China’s national conditions and drawing lessons from foreign experience, China’s Sustainable Development Indicator System uses a “menu-style multiple indicators” method, that is, it is an index cluster composed of several indicators that reflect key issues in various fields of sustainable development. China’s Sustainable Development Indicator System is composed of six major parts—the economy, society, population, resources, the environment, and science and education. (1) The indicators in the economic field mainly reflect the gross national economy and its growth (such as GDP and its growth, and so on), the structure of the national economy (such as the tertiary industry structures and their changes, and so on), the quality and benefits of the national economy, and the development capacity and stamina of the national economy (such as per capita fixed asset investment, and so on). (2) The indicators in the resource field include the quantities and use of six major resources—water, land, forests, oceans, minerals, and grasslands; marine resources include the length of the coastline, the sea area, the reserves in marine fish and shrimp, the amount of fishing, the amount of growth, mariculture area, marine nature reserves, and so on. (3) The indicators in the environmental field include protection of the atmosphere, solid waste, water environment pollution control, desertification control, disaster prevention and mitigation, biodiversity protection, and so on. (4) The indicators in the social field include the quality of life of residents, unemployment and employment, health and hygiene, social security, residential environment, and other aspects. (5) The indicators in the field of population mainly include the total number of the population and its changes, the

230

X. Chen and Q. Ding

quality of the population and its changes, and the population structure and its changes. (6) The indicators in the field of science and education mainly reflect science and technology (such as science and technology input, science and technology output and results, science and technology contributions, high-tech industries, and so on) and the development of educational undertakings (education input, education structure, number of graduates, in-job training, and correspondence education and training). According to the analysis and comparison of the evaluation methods of several main domestic and foreign comprehensive index systems for sustainable development mentioned above, most have adopted a menu-style multiple indicators method. Generally, it is divided into a target layer, a criterion layer, and an indicator layer; the criterion layer can also be divided into several layers according to the requirements. The advantage of establishing an evaluation method for a comprehensive index system is that based on the existing data, it can evaluate the comprehensive results from many aspects, including the economy, society, resources, the environment, and population. The establishment of a generally dimensionless index avoids the issue of quantification between different factors, but the deficiencies are also very obvious; that is, the structure of the evaluation index system is comparatively complex, there are hundreds to thousands of indicators, and problems such as incomplete coverage in indicator information or an overlap in indicator information may also appear.

5.3 5.3.1

Basic Theories on the Sustainable Use of Fishery Resources Connotation and Definition of Sustainability

The concept of “sustainability” stems from the analysis of the utilization of renewable resources such as fisheries and forests. In fact, a sustainable process refers to that process being able to be maintained forever for an infinite period of time, and not only is there no attenuation in quantity and quality inside and outside of the system, but there is even improvement. From an economic perspective, simply using interest generated by principal deposited in a bank is a sustainable process because the amount of principal remains unchanged, but any use rate higher than the interest earned will undermine the principal. For natural resources, the most basic and indispensable condition for sustainability is keeping the total stock of natural resources unchanged or higher than the existing level. Michael (1992) argued that it is quite difficult to define “sustainability.” In addition to semantic ambiguity, there are different opinions on how to achieve sustainability. The economist Julian Simon believed that sustainability could be achieved by way of resource substitution and technological innovation, but the ecologists Paul and Anne Ehrlich believed that human pressure on natural systems had already exceeded the sustainable level long ago.

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

231

Pearce and Turner (1990) defined sustainability as follows: “it involves maximizing the net benefits of economic development, subject to maintaining the services and quality of natural resources over time.” The following is the definition of sustainability by the International Union for Conservation of Nature (IUCN) in 1991: “To sustainably use refers to using an organic ecosystem or other renewable resources within the scope of their regeneration.” (Chen 2014). In 1991, Herman Daly proposed that sustainability is composed of three parts: (1) the use rate of renewable resources does not exceed the rate of regeneration; (2) the use rate of nonrenewable resources does not exceed the rate of exploitation of their renewable substitutes; and (3) the rate of pollutant discharge does not exceed the selfpurification capacity of the environment (Chen 2014). Mohan Munasinghe and Walter Shearer thought that the concept of sustainably should include the following: (1) the ecosystem should be maintained in a stable state; that is, it does not attenuate with time; (2) a sustainable ecosystem is in a state that can be kept in existence in perpetuity; and (3) emphasis on the potential to maintain the resource capacity of the ecosystem; thus, the ecosystem can provide the same quantity and quality of goods and services as in the past. Its potential is more important than capital, biomass, and energy levels (Chen 2014). To understand the core connotation of sustainability, it is necessary to expand one’s understanding of capital (Chen 2004; Chen 2014). There are at least four types of capital: (1) man-made capital, which is usually considered to be fiscal and economic; (2) natural capital, such as natural resources and so on; (3) human capital, which is an investment in individuals in terms of education, hygiene and health, and nutrition; and (4) social capital, which is the cultural basis and institutions for society to play a role. A definition of sustainability thus follows: “the total sum of the above four capitals we leave to future generations is not less than the total sum of the capitals owned by our generation.” He also believed that for natural resources, sustainability means “to maintain its assets or at least not to consume them to a certain limit; any consumption based on the consumption of natural capital should not be regarded as income, but should be regarded as the consumption of natural capital.” According to the size of the extent of substitution between different capitals, sustainability can be divided into weak sustainability (weak), intermediate sustainability (intermediate), strong sustainability (strong), and absolute strong sustainability (absolute strong) (Chen 2004). (1) Weak sustainability refers to keeping the total capital stock unchanged without considering the composition of the four types of capital. (2) In addition to requiring that the unchanged total amount of capital be protected, intermediate sustainability should also address the composition of capital. Man-made capital and natural capital can be substituted within a certain scope. (3) Strong sustainability refers to maintaining different types of capital in the way they have been sorted out into different categories, emphasizing that the relationship between natural capital and man-made capital is not one of substitution in most production functions but, rather, a complementary relationship. (4) Absolutely strong sustainability refers to the inability for anything to be consumed, and nonrenewable resources absolutely cannot be used; only the net growth portion of

232

X. Chen and Q. Ding

renewable resources can be used. This sustainability has no practical significance in practice. At present, there are two major factions in the discussion on sustainability. Economists agree with weak sustainability, but ecologists support strong sustainability; intermediate sustainability and absolute strong sustainability are rarely involved (Chen 2004). In summary, it is quite difficult to provide an accurate definition of sustainability. Objectively, there are problems such as unclear connotations and ambiguity because, in a universal sense, not any one way of behaving can last forever. In a finite world, there will always be limitations. Throughout human history, whenever faced with challenges, new methods have always been born through the emergence of substitutes, technological progress, and institutional innovation. In addition, the sustainability usually spoken of is only a predictable “sustainability” at the level of understanding that humans currently have. There are still many uncertainties and unknowns in the real world (Chen 2004; Chen 2014).

5.3.2

Concept of and Connotation for the Sustainable Use of Fishery Resources

Sustainable development is the rational allocation and sustainable use of natural resources. From a narrow sense of understanding, the sustainable use of fishery resources implies that human fishing intensity does not exceed the bearing capacity or self-renewal capacity of fishery resources. From a broad sense, the sustainable use of fishery resources refers to the resource utilization modes that satisfy the needs of contemporary people for aquatic products under the premise of not damaging the foundation of fishery resources for future generations to satisfy their demands. The sustainable use of fishery resources is an important direction for realizing a sustainable fishery development strategy. From the perspective of social morality and justice, the rational utilization of fishery resources by any country, area, and individual has to not only take into account its own needs but also the needs of other countries, areas, individuals, and even several future generations. Currently, people start with their own needs to carry out effective exploitation and utilization of resources, which can only be one aspect of the rational utilization of resources, not all of its contents. The connotation of the sustainable use of fishery resources should include the following aspects. 1. The sustainable use of fishery resources must use the satisfaction of the demands of economic development on fishery resources as a premise. The ultimate goal of human production is economic development and to improve the welfare of all mankind on this basis. To a certain extent, it is totally unavoidable that economic development will be at the cost of the consumption of fishery resources, and with the acceleration of economic growth, the rate of consumption of fishery resources will also increase. However, if the environmental foundation of fishery resources is maintained at the cost of economic development, the desires and ethical

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

2.

3.

4.

5.

233

foundations of mankind itself are not satisfied. Therefore, humans can only achieve the sustainable use of fishery resources by reforming fishery resource utilization methods to coordinate the contradiction between economic development and protecting the environment of fishery resources, thereby ensuring the demands of economic development on fishery resources. The “use” in the sustainable use of fishery resources refers to the whole process of the exploitation, use, management, and protection of fishery resources and does not only refer to the use of fishery resources. Rational exploitation and use is seeking and selecting the best utilization goals and approaches for fishery resources in order to unleash the advantages and maximum structural functions of fishery resources; the so-called “control” is to adopt comprehensive measures to transform those unfavorable fishery resource conditions to favorable conditions, such as building artificial pastures; and the so-called “protection” is to protect fishery resources and their environment in the original state favorable to production and living. The human utilization of fishery resources is not only in the simple sense of a request, it further means, in a certain sense, input in the production of fishery resources. The maintenance of and improvements in the ecological quality of fishery resources are important embodiments of the sustainable use of fishery resources. The requirements for the sustainable use of fishery resources are the maintenance of and improvements in the ecological quality of fishery resources; these are proposed in view of the situation that fishery resource exploitation and utilization activities in the past have brought substantial wealth but have also led to serious damage to the ecological quality of fishery resources and to the decline in fishery resources and will endanger the survival and development of mankind in the future. The sustainable use of fishery resources means maintaining and rationally improving the foundation of fishery resources, which means adding attention and consideration to ecological and environmental quality in the plans and policies for the exploitation and utilization of fishery resources. Under certain social, economic, and technological conditions, the sustainable use of fishery resources means requiring a certain amount of fishery resources. Within the predictable prospects determined by the scope of current human understanding, the sustainable use of fishery resources involves equity issues. Because the current fishery resource utilization methods have led to a reduction in the quantity of fishery resources and thus affected the demands of future generations, these methods do not constitute sustainable use. The sustainable use of fishery resources must, at predictable economic, social, and technological levels, ensure a certain quantity of fishery resources to satisfy the needs of future generations for production and living. The sustainable use of fishery resources is not only a simple economic problem, it is also simultaneously a comprehensive concept involving society, culture, and technology. The joint action of the various aforementioned factors has formed the way people utilize fishery resources under specific historical conditions. To achieve the sustainable use of fishery resources, it is necessary to comprehensively analyze and evaluate economic, social, cultural, technological, and many

234

X. Chen and Q. Ding

other factors, retain the parts therein that are favorable to the sustainable use of fishery resources, and transform the unfavorable parts into favorable parts for the sustainable use of fishery resources.

5.3.3

Factors that Affect the Sustainable Use of Fishery Resources

5.3.3.1

Resource Abundance and Environmental Capacity

The abundance of fishery resources and environmental capacity are the primary factors affecting fishery resource utilization methods in a certain region. In economic analyses, fishery resources and the environment can be regarded as the capital necessary for production activities, or one can say that nature has provided humans with the products and services they need. In a sense, fishery resources and the environment are the ecological capital necessary for human production and living. The nonsustainable use of ecological capital will cause serious damage to fishery resources and the environment, making irreversibility increasingly more obvious, and minimum safety standards establish a boundary determined by fishery resources and environmental conditions, which is used to represent the degree of fishery resource exploitation allowed. Therefore, the abundance of fishery resources and the size of the environmental capacity in a region directly affect the minimum safety standards for the exploitation and utilization of fishery resources in that region and further determine the difficulty or ease of achieving the sustainable use of fishery resources. Generally, it is easier for an area with better fishery resource and environmental conditions to achieve sustainable use than it is for an area with poorer conditions.

5.3.3.2

Population and the Economy

The effect of the population and the economy on the sustainable use of fishery resources is mainly manifested in the pressure that the size of the population and the degree of economic development have on fishery resources and the environment. The larger the population is, the greater the demand for fishery resources and demand on the environment, which objectively creates an unfavorable external environment for achieving sustainable use and that more easily breaks through the minimum safety standards for fishery resources and the environment, causing the predatory use of fishery resources. Furthermore, problems with population quality are also closely related to the utilization of fishery resources. The higher the population quality is, the easier it is to accept and consciously implement the sustainable use of fishery resources. There is also a very strong correlation between the degree of economic development and the utilization of fishery resources. Generally, the more economically developed, the greater is the demand for fishery

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

235

resources and demand on the environment, and the greater the loss that may be brought to fishery resources and the environment; however, economic development also provides the sustainable use of fishery resources with advanced technological means and financial support and is also objectively favorable to achieving sustainable use.

5.3.3.3

Technological Progress and Structural Changes

Science and technology have had substantial impacts on the process of changing human destiny. For example, in fisheries, the application of powered fishing vessels, new materials, navigation instruments, and so on has greatly improved fishing capacity and intensity. Today, humans are faced with two dilemmas: environmental degradation and economic development. When seeking a new historical juncture for sustainable development, hope is placed on the development of science and technology. In the process of fishery resource exploitation and utilization, using technologies that are harmless or even beneficial to fishery resource environments to replace technologies that are potentially and actually harmful fishery resource environments, that is, environmentally friendly fishing gear and methods, will greatly reduce the environmental risks in the process of fishery resource utilization. In fact, there are indeed such opportunities and possibilities in production practice activities, which allow the development and application of science and technology to promote economic development while playing a role in reducing pollution and improving environmental quality, such as research on the selectivity of fishing gear. In the economic structure of a country and area, the degree to which industry, agriculture, the service industry, and their various internal industrial sectors depend on fishery resources is different. Furthermore, the effects on fishery resources and the environment by the consequences generated from fishery resource utilization by various industrial sectors are also different. Therefore, effective economic structural changes can lead to fishery resource conservation and pollution prevention in the industrial structure of a country and area, the development of high-tech industries that conserve fishery resources and reduce pollution, and the achievement of fundamental changes in the economic structure.

5.3.3.4

Culture and Institutions

Any fishery resource exploitation activity is carried out under certain cultural background and institutional conditions. The externally binding role of culture and institutions has an important effect on the form of fishery resource exploitation and utilization. Whether the basic, simple ideological factors for fishery resource and environmental protection are contained in a country’s traditional culture constitutes an effect on stimulating people’s inner strength to thereby adopt sustainable forms of fishery resource utilization, whereas institutions are mainly controlled by external, formal constraints. Because the various nonsustainable use behaviors in the process

236

X. Chen and Q. Ding

of fishery resource utilization cannot be effectively resolved through other forms, institutional systems favorable to the sustainable use of fishery resources are consciously constructed, such as the paid use system for fishery resources, the property rights system, the price system, and so on, which constitute important guarantees for the sustainable use of fishery resources.

5.4 5.4.1

Assessment Methods for the Sustainable Use of Fishery Resources Concept of and Connotation for the Sustainable Use Assessment of Fishery Resources

In a philosophical sense, an assessment is an activity that reflects the value relationship between the evaluator’s evaluation of the object’s attributes and the needs of the evaluator. The subject of sustainable use assessment is a person. Therefore, when evaluating, humans must establish the value of sustainable development. In the sustainable development of fisheries, measuring the success or failure of the development of fisheries is no longer just growth in fishing yield but, rather, a comprehensive assessment; it also includes sustainability in the utilization of fishery resources, the coordination of marine ecology, and the stability of the marine environment. In addition, sustainable development also particularly emphasizes the principle of time and space equity in development. Temporally, the requirement is that people in the current generation should acknowledge and strive to make their opportunities equal to the opportunities of the people in future generations when they are fishing and consuming fishery resources, and they should not deprive people in future generations of the opportunities for fishing and consuming fishery resources. Spatially, the requirement is to achieve fair burden-bearing and cost-benefits between resource utilization and environmental protection within a region and between regions; the requirement is that while the utilizers of resources and the environment are profiting, they must pay all social costs arising thereof. The sustainable use assessment index is a compass that can be used to reveal and monitor the current status and trends of fishery development. Additionally, it can also monitor the sustainability of fisheries and the effects of fishery development policies and management. This includes various parts of the fishery system, such as environmental conditions, target species, species connected with or dependent on the target species, economic and social status, cultural background, and so on. In fact, the sustainable use assessment index uses a comprehensive method to determine the sustainability of various aspects of the environment, resources, the economy, and society and dynamically compares the trajectory determined by the fishery development trajectory and plans (or goals). For example, in the course of implementing resource recovery measures, the changes in the amount of spawning are compared;

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

237

when the indicator deviates from the goal, corresponding measures should be taken immediately.

5.4.2

Relativity of Sustainable Use Assessments

A sustainable use assessment has certain relativity, which is specifically manifested in the relativity of the evaluation standards, the relativity of the evaluation indicators, and the relativity of the indicator weights.

5.4.2.1

Relativity of Evaluation Standards

In conducting a sustainable development evaluation, the key issue is determining the evaluation standards, that is, the reference values that are used as the standards to measure the level of sustainable development and its changes for a region or a type of resource. Because the natural conditions in various seas differ greatly and are widely distributed, fishery resources are extremely susceptible to the effects of external marine environmental conditions; therefore, it is very difficult to use a unified standard to evaluate regions with greater differences. Therefore, there is no absolute evaluation standard for sustainable development, and any evaluation standard is relative and is put forward based on reality. In other words, any evaluation standard has a social nature and a historical nature and has certain limitations. The author believes that the purpose of sustainable use assessment of fishery resources is for understanding the changes in the sustainable use of fishery resources in certain seas and to determine the factors that restrict sustainable use, in order to improve the conditions for the sustainable use of fishery resources through sustainable use planning, fishery management, and technological countermeasures, to thereby achieve the sustainable use of fishery resources. Therefore, for a certain determined fishery resource, the vertical comparison of a time series is more important than the horizontal comparison of spatial regions because it shows whether or not the sustainable use level of the evaluated fishery resource is gradually improving or gradually decreasing.

5.4.2.2

Relativity of Evaluation Indicators

The sustainable use of fishery resources is a complex system with temporal and spatial changes and is always in continuous development and change. At a certain moment, indicators reflect the major contradictions or the major aspects of the contradictions in resource utilization and development changes, and at another moment, indicators may be reduced to minor contradictions or minor aspects of contradictions. Because people’s understanding of the characteristics and laws of change in resource utilization has relativity, the evaluation index system established

238

X. Chen and Q. Ding

based on the knowledge of resource changes also has relativity. Thus, the index system must be continuously revised and supplemented as a region changes. The system can be revised once every 5 years in hopes of synchronizing with fishery development planning to benefit the formulation of sustainable use planning of fishery resources. Furthermore, the compound system of resource utilization also has spatial differences. The natural conditions in China’s seas vary greatly, and fishery and economic development are not balanced; therefore, when establishing an index system for sustainable development evaluation, it is necessary to consider a specific region’s particularities on the basis of a general understanding of the compound system of resource utilization.

5.4.2.3

Relativity of Indicator Weights

Like evaluation indicators and evaluation standards, indicator weights also undergo spatial-temporal changes. At different stages of resource utilization, the importance of each indicator for the sustainable use of resources is different, and thus its weight will change; in different regions, due to differences in natural conditions or social and economic development levels, indicator weights also change. For example, in economically developed countries and areas such as the United States and Japan, there is a strong awareness of fishery resource protection, and the utilization of fishery resources may be more for leisure, entertainment, and so on, to improve people’s quality of life, while in economically poor countries and areas, the exploitation and utilization of fishery resources is an important source of economic income. Therefore, when determining indicator weights, the social, economic, and other development levels of various places must be taken into full consideration, and the opinions of competent fishery authorities and fishers have to be listened to earnestly.

5.4.3

General Steps of Sustainable Use Assessments and a Framework

5.4.3.1

General Steps of Evaluation

Sustainable use assessments are the premise by which sustainable development enters the operability stage from the theoretical stage. According to the theory of sustainable development, scientific methods and means should be used to evaluate the operating state, degree of realization, and effects obtained in the sustainable use of fishery resources and to provide a basis for decision-making to guide sustainable use. At present, there are many sustainable development evaluation methods, involving tens of thousands of indicators. In evaluating the sustainable use of fishery resources, there is a widely used model for evaluating comprehensive index systems for sustainable development, and the general steps of the specific evaluation include

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

239

(1) determining the general goals of the sustainable use assessment of fishery resources; (2) determining the scope and basic framework for the sustainable use assessment of fishery resources; (3) determining the evaluation standards and evaluation indicators; and (4) calculating evaluation index values and determining the evaluation results. Before determining the structure and scope of the sustainable use of fishery resources, the general goals of sustainable use should be considered, in particular whether fishery resources contribute to sustainable development or to the sustainable use of fishery resources themselves. When determining the scope and basic framework for the sustainable use of fishery resources, the following factors should be fully considered: human activities involved in the fisheries, such as trawling, angling, purse seine, drift gill net, and other fishing operation modes; key issues involved in the sustainable use of resources (such as excess capacity, land-based sources of pollution, and endangered species); fishery resource species; characteristics of fishery resources, such as transboundary or highly migratory; important habitats for the main fishery resources; mutual influence between different fisheries; fishery management systems, such as property rights to fishery resources, management modes, and so on; and market prices, environmental fluctuations, and other activities such as the effect of coastal development on fishery resources. Once the goals and scope of sustainable use are determined, the next step is to establish or select an evaluation framework. In practice, which framework is used is not the most critical, as long as the framework contains the scope and goals determined above. In many cases, different frameworks will lead to the same set of indicators and will provide different methods and approaches for testing the evaluation standards and evaluation indicators.

5.4.3.2

Framework for the Sustainable Use Assessment of Fishery Resources

At present, five representative frameworks for the sustainable use assessment of marine fishery resources have been put forward: the general sustainable development model, the sustainable development model established by the FAO, the Code of Conduct for Responsible Fisheries model, the PSR model, and the ecologically sustainable development (ESD) model. See Table 5.1 for their basic frameworks.

General Sustainable Development Model According to the general framework for sustainable development, sustainable use systems for marine fishery resources can be generally divided into an environmental (including resources) subsystem and a human subsystem. The human subsystem exerts complex pressures on the environmental subsystem through the exploitation and utilization of fishery resources in the environmental subsystem. Due to an

240

X. Chen and Q. Ding

Table 5.1 Several framework systems for sustainable development (Chen 2004) Type of model General sustainable development Sustainable development model established by the FAO Code of conduct for responsible fisheries

PSR ESD

Basic framework Human subsystem, environmental subsystem Resources, management by politics, population, the environment, technology Fishing operations, unified and comprehensive management implemented with coastal areas, development of the breeding industry, fishery management, post-catch activities and trade, scientific research on fisheries Pressure, state, response The environment, society, the economy, institutions

Human subsystem

Economic subsystem

Food and services

Environmental subsystem

Decline in Pressure pollution

Species connected and interdependent with it

Labor

Population subsystem

Target species resource

Natural feedback

State

Environment State

Response Offset

Management

Fig. 5.2 A general model of sustainable development (Chen 2004)

increase in fishing intensity that exceeds the regenerable capacity of fishery resources, fishery resources decline and degrade. In addition, human activities cause pollution of the seas, and thus the pressure on fishery resources is further exacerbated. Conversely, the environmental subsystem produces natural feedback to the human subsystem. A decrease in the amount of fishery resources and a decrease in the quality of fishery resources produce adverse effects on and play an inhibitory role in human sustainable development and the supply of aquatic products (as in Fig. 5.2). Similarly, the subsystems can also be further divided into smaller subsystems and their interactions, such as the exchange of food, services, and labor between the population and the economic subsystems in the human subsystem. In the environmental subsystem, the target species resource has a close relationship with the environment as well as with species that are related to it and interdependent with it.

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

241

Sustainable Development Model Established by the FAO The definition of sustainable development put forward by the FAO can be considered as the basis of the general framework for formulating the sustainable use of fishery resources. This definition includes the following parts: (1) protection of the environment and resources; (2) satisfying the social and economic aspects of human needs; (3) control in terms of technology; and (4) the establishment of institutions. The definition of sustainable development established by the FAO mainly contains the realization of sustainability in environmental welfare (the environment and resources) and human welfare (through humans, technology, and organizations). According to the definition of sustainable development established by the FAO, the framework of the sustainable use index system for marine fishery resources is composed of five subsystems: the resource and environmental subsystem, the social subsystem, the economic subsystem, the technological subsystem, and the institutional subsystem (as in Fig. 5.3). This framework is composed of two parts: environmental welfare and human welfare. Environmental welfare includes the environmental and resource subsystems, and human welfare includes the human, technological, and institutional subsystems. The resource subsystem includes the amount of fishery resources, biodiversity, and resource recovery capacity; the environmental subsystem includes the conditions of habitats for fishery resource species; the technological subsystem includes fishing capacity, operation modes, and the effect of fishing on the environment; the institutional subsystem includes fishery management modes, fishing rights, and fishery property rights; and the social subsystem includes food supply, employment, fisher’s income, economic benefits generated, participation in fishery management, fishery monitoring, and other aspects.

Fig. 5.3 FAO sustainable development model (Chen 2004)

Environment Population

E

Institutions

Resources Technology

H

242

X. Chen and Q. Ding

Framework of an Index Based on the Code of Conduct for Responsible Fisheries The Code of Conduct for Responsible Fisheries passed by the United Nations in 1995 was used by various coastal nations and fishing nations as an operable, specific method for establishing sustainable fisheries. It provides a model that is different from sustainable development, starting out purely from factors that have a direct relationship with fisheries. However, it has a certain association with the sustainable development framework, and its system structure has a certain operability. The framework of this index specifically includes six subsystems: (1) fishery management; (2) fishing operations; (3) implementation of unified comprehensive management with coastal areas; (4) post-catch processing and trade; (5) development of the breeding industry; and (6) fishery research (as in Fig. 5.4). Each subsystem (1–6) corresponds to a different group, that is, the management object; managers, fishers, processors and traders, breeders, and scientists, respectively. From the content analysis of the Code of Conduct for Responsible Fisheries, this type of fishery management mode includes all fishery-related populations and implements the comprehensive management of fishery resources, thereby ensuring the sustainable use of fishery resources.

PSR Sustainable Development Model The framework system for the PSR sustainable development index was put forward by the OECD and other international organizations (see Fig. 5.1). Pressure, state, and response represent three different types of indexes in the sustainable development index system. Pressure refers to the pressure exerted on various aspects of the sustainable use system for marine fishery resources, but the level of pressure is Code of Conduct for Responsible Fisheries

Fishery management

Fishing operations

Implementation of unified comprehensive management with coastal areas

Post-catch processing and trade

Development of the breeding industry

Scientific research on fisheries

Managers

Fishers

Managers

Processors and traders

Breeders

Scientists

Fig. 5.4 Code of conduct for responsible Fisheries model (Chen 2004)

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

243

very difficult to determine. Changes in the pressure index can also provide an early warning service for problems that emerge in the process of sustainable development. State refers to an index that can reflect the current status and operating state of certain aspects in the sustainable use system for marine fishery resources. The state index in a long time series can predict the development trends in the state of the entire system. Response refers to the corresponding measures taken by policymakers and managers according to the signals sent by the state of the sustainable use system for marine fishery resources. The aforementioned three indexes constitute an important part of sustainable use systems for marine fisheries. There is a direct correlation among them; that is, pressure indicators (such as fishing intensity or fishing rate) will accompany the measurement of the effect this pressure generates, that is, the state (such as a decrease in population level), and the response to this type of pressure and state (management of fishing pressure or reducing the fishing intensity). Ideally, a mathematical model can be established for the relationship between the three indexes of the PSR model; it is a dynamic concept. The selection of PRS indicators should reflect the state of, changes in, and structural characteristics of each part of the sustainable use system for marine fishery resources.

ESD Model Chesson and Clayton (1998) recommended the construction of an ESD model on the basis of the framework structure for general sustainable development, with the purpose of determining the sustainability management objectives and enabling satisfaction with and implementation of the requirements. The division standards at the highest level of sustainable use models for ecotype fishery resources are the same as those for the general framework for sustainable development. It starts with human activities, that is, fishing operations, and analyzes the effect of fishing operations on the sustainability of resources and the environment. The effects of fishing operations can be divided into effects on humans and effects on the environment (including effects on resources). The effects will ultimately affect the quality of human life, with some effects occurring indirectly through the environment (Table 5.2). Table 5.2 only provides a framework for the sustainable use assessment of fishery resources, and the contents of the last column can continue to be subdivided. For example, Chesson and Clayton (1998) divided the direct effects on nontarget species into the effects of normal fishing operations and effects independent of normal fishing operations, such as ghost fishing. Similarly, direct effects can also be divided into effects between populations (predation and competition) and effects of food supply (from waste). Garcia et al. used a fishery in Australia for a certain species as an example and carried out specific division and analysis.

244

X. Chen and Q. Ding

Table 5.2 Structure of the ESD framework (Chen 2004) System Effects on humans

Subsystem Food Employment Income

Lifestyle Effects on the environment

Target species

Nontarget species Other aspects

Sub-subsystem Commercial Livelihood-type Direct Indirect Individual/household Group/region Nation Fishermen Association Distribution and amount of resources Population structure Germplasm resources Direct effect Indirect effect Habitat and water quality Landscape Organism movement

5.4.4

Index System for the Sustainable Use Assessment of Fishery Resources

5.4.4.1

Evaluation Indicators and their Index System

Indicator originates from the Latin “indicare,” which means to reveal, to designate, to proclaim, or to make the public understand. The indicator is a quantitative concept and concrete numerical value that reflects the elements or phenomena of a system. It includes two parts: the name of the indicator and the numerical value of the indicator. Indicators usually provide people with information about aspects of development trends for a certain phenomenon; therefore, their importance is not only embodied in the characterization and measurement of the phenomenon. Because people usually set indicators or index systems mainly to provide decision-makers and the public with decision-making information, indicators not only have to provide quantitative information regarding changes in things but also have to be able to reflect public policy issues, such as the roles and consequences of policies, and so on. Indicators must also use more complex statistical data and other forms of socioeconomic data to provide information in a more concise manner. Index systems for the sustainable use assessment of fishery resources are essentially sets of conditions for the development of regional fishery resources. They are organic series composed of several interrelated, mutually complementary, hierarchical, and structural indicators. The indexes constituting evaluation index systems include both basic indexes that directly come from original data as well as abstractions and summaries of the basic indexes, which are used to illustrate the connections

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

245

between various subsystems and a regional compound system as a comprehensive index that has the properties of the whole, such as various “ratios,” “rates,” “degrees,” “indexes,” and so on. Index systems are generally composed of a target layer, a criterion layer, and an indicator layer.

5.4.4.2

A General Index System for the Sustainable Use of Fishery Resources

Basic Indicator Types The constituent elements of a sustainable use system for fishery resources include economic, social, resource and environmental, and institutional subsystems. According to the requirements of sustainable development theory and combined with the characteristics of fishery resources, the basic indicator types and standards for the sustainable use of fishery resources are as follows. Economic Subsystems Yield Indicators Standards: maximum sustainable yield, MSY; maximum constant yield, MCY; long-term average yield, LTAY; maximum economic yield, MEY; optimum yield, Y0.1; and optimum yield, OY. Indicators: catch; catch production; ratio of pelagic fish catch to bottom fish catch; Y/MSY; Y/MCY; Y/LTAY; Y/MEY; Y/Y0.1; and Y/OY. Fishing Capacity Indicators Standards: fishing mortality coefficient corresponding to the maximum sustainable yield, FMSY; fishing mortality coefficient corresponding to the maximum constant yield, FMCY; fishing mortality coefficient corresponding to the long-term average yield, FLTAY; fishing mortality coefficient corresponding to the optimum yield, F0.1; fishing mortality coefficient corresponding to the optimum yield, FOY; and fishing mortality coefficient corresponding to the maximum economic yield, FMEY. Indicators: fishing effort, f; fishing intensity (fishing effort per unit sea area); fishing mortality coefficient, F; f/fMSY; f/fLTAY; f/f0.1; f/fMCY; f/fOY; f/fMEY; F/FMSY; F/FLTAY; F/F0.1; F/FMCY; F/FOY; F/FMEY; and ratio of the time needed to spot the schools of fish to the time of effective fishing operations. Economic Indicators Standards: maximum economic value; maximum rent; maximum profit; and zero subsidy.

246

X. Chen and Q. Ding

Indicators: capital input; price of fishery resources; value of total natural assets; degree of subsidies; ratio of subsidies to capital; ratio of loans to investment; ratio of actual production to maximum economic value; ratio of actual profit to maximum profit; and ratio of actual rent to maximum rent.

Technological Indicators of Fisheries Standards: environmentally friendly fishing gear; high selectivity; low waste rate or zero waste rate; and high-efficiency utilization technology. Indicators: acceptable fishing gear; body length or age at first capture; degree of fishing gear selectivity; bycatch of juvenile fish; and waste. Social Subsystem Standards: maximum sustainable employment; minimum idle personnel in society; equal income; fishing vessel safety; and food security. Indicators: coastal population; employment rate; population immigration and emigration; age; frequency of fishery conflicts; ratio of fishery to other revenue; annual loss rates for fishing vessels and fisher’s lives; and fishery revenue. Institutional Subsystem Standards: scientific research on fisheries and decision support capabilities; fishery legislation; effective participation of the masses in management decision-making; effective monitoring, control, and supervision; establishment of a fishery management committee; wealth assignment; and fishery conflict resolution mechanism. Indicators: scientific research staff and appropriation budget; application of information systems (such as a geographic information system (GIS) and databases); contribution rate of scientific research to the formulation of decisions and the assessment of management results; scope of fisheries under the jurisdiction of a management committee; the degree of participation by the masses (information collection, selection analysis, and formulation and execution of decisions); number and roles of nongovernmental organizations; and existence and severity of fishery conflicts.

Resource and Environmental Subsystem Resource Indicators Standards: virgin biomass (BV); minimum biological acceptable level (MBAL); 0.3BV; maximum sustainable yield biomass, BMSY; and maximum constant yield biomass, BMCY. Indicators: resource amount of target and nontarget species; ratios of the actual amount of resources to the amount of resources at the limit references (such as B/

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

247

BMSY, B/Bv, B/Bpa, B/Blim, and so on); catch per unit effort, CPUE; and scope of resource distribution. Population Structure Indicators Standards: body length at first capture, Lc50; body length at first sexual maturity, Lm50; average body length, L; average body length when there is no exploitation, LF ¼ 0; age at first capture, tc50; age at first sexual maturity, tm50; and average age, tave. Indicators: length composition; age composition; average body length; average age; L/Lm50; t/tm50; L/LF ¼ 0; and sex ratio. Biodiversity Indicators Standards: minimum possible loss of species diversity and minimum possible loss of germplasm diversity. Indicators: area of marine protected areas; area of coastal protected areas; and the biodiversity index. Water Quality Indicators Standards: water quality conditions at the time of the limit reference points and the standards for water environment pollution. Indicators: transparency; indexes for scanning the color of water by satellite; algae index; nitrogen and phosphorus contents; other pollution indexes; and population density. E) Important habitat indicators. Standards: state of the original habitat and state of the habitat at the time of the limit reference points (such as seagrass fields, mangroves, tidal land, corals, and so on). Indicators: ratio of actual area to the original or limit reference area; ratio of live coral to dead coral areas; seagrass density; and species diversity index.

Meaning of the Main Evaluation Indicators Economic Subsystem Economic Benefits Economic benefits include indicators such as catch production and net revenue, among others. If there is no market distortion, such as subsidies, price control, and other financial measures, economic profit (benefits) may be one of the most important indicators in the economic system. Low efficiency or negative efficiency means that exploitation and utilization of that marine fishery resource are carried out in an uneconomical and wasteful form, illustrating that the fishing capacity and fishing

248

X. Chen and Q. Ding

effort both have been excessive. Of course, low profits may result from low fish prices and high operating costs, but such a situation is extremely rare. Under the current technological conditions and under effective management, in a theoretically complete market economy, profit equals resource rent; that is, all inputs and outputs are equal to their opportunity cost or willingness to pay.

Subsidies Many experts believe that subsidies are another important reason for declines in fishery resources. Subsidies encourage fishers or fishing vessel owners to enter a fishery because the subsidies reduce the production cost of the fishery, such as subsidizing fuel oil and the construction and purchase of fishing vessels and fishing gear. Additionally, once subsidies are provided, it is difficult to reduce them. In severely subsidized fisheries, a large amount of excess capacity is generated, generating greater pressure on fishery resources. Social Subsystem Employment In many countries, work in the fishery sector, especially in the fishing industry, is usually the last approach to employment because fishers, especially those engaging in small-scale coastal fisheries, only require limited training and education. When fishery resources bear higher fishing pressure, fisheries can absorb more fishers. Therefore, the total number employed or working in the fisheries can be used as a useful indicator for the status of fisheries and the degree of dependence on fisheries for livelihood.

Protein Consumption In many developing countries, fish provide people with more than two-thirds of animal protein consumption, especially in coastal areas. However, in the last several years, the decrease in catch and the export of fish with high economic value to foreign markets has led to a decrease in the per capita consumption of fish in many countries. The increase in demand, which has caused a continuous increase in the fishing intensity of fishery resources, has in turn caused unsustainable fishing behavior. As a part of total protein consumption, fish consumption is an important standard for the contribution of fisheries to quality of life in coastal areas, and it is also an indicator of the sustainable development of fisheries. Tradition and Culture Traditional culture is an important aspect in many countries and fishery management. The loss of traditional culture and habits means a fundamental change in

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

249

operation behavior, and it also means the loss of traditional fishery management systems, which reduces control of the loosely organized livelihood fisheries. Resource and Environmental Subsystem Composition of the Catch Composition of the catch includes the size of the individual fish species, species composition, and their quantities. It is a potentially powerful signal that represents the state of resources in a sustainable use system for marine fisheries. Change in the composition of the catch may reflect a decrease in the status of the species in the catch in the food chain and in the trophic hierarchy, illustrating that high-value economic species have already encountered powerful fishing pressure resulting in a decline in resources, thereby leading to high-intensity fishing pressure toward those species with low economic value and low on the food chain hierarchy. Change in the composition of the catch means that an unsustainable use phenomenon has already emerged in the resource. If sufficient and long sequence data regarding the composition of the catch are not collected, this one danger signal that change has already occurred in the composition of the catch will be hidden. The data on the composition of the catch comes from the first line of production, and the species composition is often very complicated, especially for bottom trawling operations. To accurately grasp the composition of the catch, it is necessary to implement an observer system and carry out classification and identification. Area and Quality of Important Habitats Plant habitats (such as seagrass, seaweeds, mangroves, and marshland), estuaries, coral reefs, and the habitats of trawl fishing grounds are important components of the marine ecosystem. For marine fisheries, these places can be regarded as very important or even critical. Because these places are often locations for fish spawning and growth, they provide important and direct support for fishery production. However, fishing operations (such as trawling), which lead to habitat changes, destroy submarine vegetation, greatly affecting spawning and growth. The reduction in the amount of fish resources affects fishing production. The quality of the habitat can be determined by utilizing, for example, the ratio of the area covered by coral or live coral to the area of dead coral, the area covered by seagrass, or the composition of zooplankton in seagrass. Changes in habitat quality in the ecosystem will generate major effects on fisheries; therefore, all fisheries should recognize the importance of habitats. Ratio of the Operational Area to the Nonoperational Area Monitoring of operational and nonoperational sea areas is a very useful tool. It can be used as an indicator to reflect fishing pressure. Due to development in science and technology and maximization of operating fishing vessels, people have the ability to

250

X. Chen and Q. Ding

engage in fishing operations in any sea; therefore, declines in the resources of many major economic species in the world have occurred. According to FAO statistics on 200 important fishes, a state of overfishing and full utilization has occurred for approximately 60% of species; notably, this situation is more serious for China’s offshore resources. Therefore, in traditional fishery management institutions, prohibited fishing areas, spawning protection areas, and so on, are used as habitat protection areas and refuge sites for fishes. Biodiversity Biodiversity usually includes three levels: genetic (or hereditary) diversity, species diversity, and ecosystem diversity. Biodiversity is the basic condition for maintaining the stability of a marine ecosystem. In addition to the direct value of supplying protein, biodiversity also has indirect value, selective value, and existence value. Biodiversity can generally be characterized by three indicators: the diversity index, uniformity, and dominance.

Management by Politics Subsystem Fishing Capacity Management The capability of fishery management depends on the existence of human and financial resources and a corresponding system. Fishery management requires the input of time and resources to collect the necessary data, establish a management system, implement relevant regulations, and monitor the state of the system. Fishery management also requires a fully organized management by politics, including a series of rules and regulations and law enforcement systems. In livelihood fisheries, management systems and plans often rely on traditional power structures and changes, without too much reliance on management plans. According to the characteristic parameters of fishing vessels, fishing capacity can be expressed as the number of fishing vessels, the total tonnage, and so on. Monitoring and Control Systems for Fishery Management For fishery management to achieve specific goals and objectives, it is necessary to establish and use a series of rules and regulations to standardize the behavior of fishers who enter fisheries and the fishing gear used. Property Rights to Fishery Resources Because fishery resources are a shared resource, fishes are distributed widely throughout the seas, and some migrate, with some undertaking large-scale migrations, such as salmon. This has brought difficulties in determining property rights to fishery resources. Property rights to fishery resources are generally determined only

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

251

at the time of fishing. Due to the difficulty in determining property rights, the allocation of resources cannot reach the Pareto optimal state. Fishery Management Measures In the initial stage of fishery management, resource management is conducted under the principle of free entry to fishing and mainly by means of indirect restrictions such as prohibited fishing areas, closed fishing seasons, and body length regulations. Prior to the 1970s, the management methods used internationally were mainly based on input control and technical measures, supplemented by restrictions on catches. However, as resources continued to decline, the damage to resources was severe. In the 1980s, management systems started to give priority to the use of catch limitations, supplemented by indirect means of limitation. With the accumulation of large amounts of scientific surveys and research and historical data on aquatic resources by various countries and fishery organizations, management methods that use catch limitations have been rapidly popularized, especially in some developed countries. For example, almost all 21 member states of the Organisation for Economic Co-operation and Development have implemented the total allowable catch (TAC) system, combined with the use of indirect restriction measures such as closed fishing seasons, prohibited fishing areas, and mesh regulations. Catch limitations have been popularized as a main method in fishery management systems and will be further improved in combination with other management measures.

5.4.4.3

Principles of Indicator Selection and Screening

Principles of Indicator Selection The sustainable use of fishery resources is a complex large system that involves not only resources and the environment but also social, economic, and institutional aspects. Therefore, the selection of sustainable development indicators must abide by the following principles: 1. The scientific principle. The selection and design of indexes for sustainable use assessment must be based on sustainable development theory, economic theory, environmental ecology theory, and statistical theory. Such indexes have better stability and are easily accepted by more people. A scientific nature is the basis for realizing the standardization and unification of sustainable development indexes. The scientific principle requires that the definition, calculation method, data collection, scope of inclusion, and weight selection of indicators must have a scientific basis. 2. The goal-oriented principle. Sustainable use assessment is both a theoretical issue and a practical issue. Each country or area establishes its own index for the sustainable use of fishery resources in accordance with the general definition and connotation of sustainable development combined with the specific situation of

252

X. Chen and Q. Ding

the home country or home area. The index system must be able to reflect the degree to which the sustainable development goals are achieved. The sustainable development index formulated by each country is basically set according to its own sustainable development goals and the key issues of the goals. 3. The completeness principle. The sustainable use of fishery resources is a complex large system; therefore, its indexes must have indicators that reflect the development of various systems, such as the economy, society, the environment and resources, and institutions, and have indicators that reflect the mutual coordination of the above systems. There should also be a certain internal connection between the indicators to facilitate analysis and research. Additionally, a sustainable use index should appropriately track the policies of sustainable development of fisheries and reflect the effect of fishery policies. 4. The principal component principle. When setting indicators, one should select representative comprehensive indicators as much as possible. 5. The operability principle. The indicator setting has to utilize existing statistical data as much as possible. The indicators must be measurable and comparable and be easy to quantify. In actual evaluations, indicator data can be acquired by statistical data sorting, sample surveys or typical surveys, or directly from relevant departments. When screening indicators, it is necessary to comprehensively consider the aforementioned principles and, at the same time, treat them differently. On the one hand, one has to comprehensively consider the completeness, goal-oriented nature, principal component, and independence of evaluation indicators and cannot determine the acceptance or rejection of indicators by only one principle; on the other hand, due to the particularity that each aforementioned principle has and the differences in current research understanding, consistency in measurement precision and research methods for each principle cannot be guaranteed.

Indicator Screening When carrying out the sustainable use assessment of fishery resources, establishing a scientific and reasonable evaluation index system is related to the accuracy of the evaluation results. Generally, the frequency statistics method, theoretical analysis method, and expert consultation method can be used to satisfy the completeness and goal-oriented principles of indicator selection. The frequency statistics method allows analyzing frequency statistics in current reports and papers regarding fishery resource evaluation and management and selecting those indicators that are used with higher frequency. The theoretical analysis method allows carrying out analysis, comparison, and synthesis on the connotation, characteristics, basic elements, and main issues of the sustainable use of fishery resources and selecting important development conditions and strongly targeted indicators. The expert consultation method allows further consulting the opinions of relevant experts based on the preliminarily proposed evaluation indicators to adjust the indicators. Using these

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

253

Start Frequency statistics method

Collect data

Theoretical analysis method

Establish a general index system

Expert consultation method

Specific index system Calculate relevant coefficients Principal component analysis Independence analysis Determine the evaluation indicators Establish an evaluation index system End

Fig. 5.5 Framework for an indicator screening procedure (Chen 2004)

three methods, a general index system for sustainable use assessment can be obtained. An indicator screening procedure is shown in Fig. 5.5. After a general index system is established, a specific index system is determined by considering the status of fishery resources and the status of socioeconomic development of the evaluated region as well as the availability of index data. To satisfy the principal component and independence principles of index selection, principal component analysis and independence analysis of specific index systems can be utilized to establish selected indicators that have rich content and are comparatively independent to form an evaluation index system.

5.5 5.5.1

Quantification Methods for the Sustainable Use Assessment of Fishery Resources Comprehensive Index Evaluation and Quantification

The basis for evaluation and quantification methods for a comprehensive index for the sustainable use of fishery resources is to carry out organization and comprehensive analysis on a large amount of social, economic, and resource and environmental statistical information based on existing resource, social, economic, and other statistical systems. The method should objectively reflect the interrelationships between various factors and changing trends and quantify and evaluate them. There are many quantitative methods for comprehensive index evaluation, but there is also a certain degree of difficulty in conducting objective evaluations. At

254

X. Chen and Q. Ding

Target layer

Criterion layer

Indicator layer C1

Economic development level B1

C2 C3 C4 C5

Social progress B2

C6 C7 C8

Sustainable development goals

C9 Resource and environmental supports B3

C10 C11 C12 C13

Sustainable development capacity B4

C14 C15 C16

Fig. 5.6 Schematic diagram of a general index system for sustainable development assessment (Chen 2004)

present, the commonly used evaluation methods are expert evaluation, the mathematical statistical method, gray system theory, sustainability barometers, and so on. The following are the general steps for evaluation and quantification: (1) establish a general index system; the general sustainable development index system is composed of a target layer, a criterion layer, and an indicator layer; The criterion layer can also be divided into several subcriterion layers (Fig. 5.6); (2) determine the indicator weights; (3) establish initial values for and normalize the indicators; (4) establish a calculation method for the comprehensive evaluation index; and (5) analyze the evaluation results. Among them, determining indicator weights and calculation methods for the comprehensive evaluation indexes are important steps of the evaluation and quantification method.

5.5.1.1

Method for Determining Indicator Weights

Because the index connotations of evaluation index systems are different, their importance to sustainable development also differ; therefore, when evaluating sustainable development comprehensively, it is necessary to determine the weight of the indicators according to the relative importance of the indicator and the contribution

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

255

of the indicator to the comprehensive evaluation. There are many methods for determining weights, and qualitative analysis and quantitative analysis methods can be used, including the Delphi method, the equal difference method, regression analysis, fuzzy comprehensive evaluation, gray correlation analysis, principal component analysis, the analytic hierarchy process, and so on. Among them, the analytic hierarchy process is a more commonly used and more effective weight determination method.

5.5.1.2

Method for the Initial Value Processing of Evaluation Indicators

The target system of comprehensive evaluation generally presents the form of a hierarchical structure. One of the remarkable characteristics of multiobjective decision-making, that is, the incommensurability between objectives, is the lack of a unified metric standard for each objective; therefore, it is difficult to carry out a comparison. To prevent calculation results from being influenced by the dimension and magnitude of the index and to ensure its objectivity and scientific nature, standardization processing must be carried out on the original data before a comprehensive evaluation is carried out, for a uniform transformation into the range of (0, 1), that is, quantification of the attribute values of the evaluation index. However, because the types of evaluation indicators are often different, the methods for quantifying their attribute values should also be different. According to the type of evaluation indicator, the following four kinds of membership functions are given:

Membership Function for Quantifying the Cost Index (ui 2U1)

  r pi ¼ μdi xpi ¼

8 > >
M  mi > : i 0

xpi  mi xpi 2 di xpi  M i

256

X. Chen and Q. Ding

Membership Function for Quantifying the Efficiency Index (ui 2 U2) 8 1 > >   < xpi  mi r pi ¼ μdi xpi ¼ M i  mi > > : 0

xpi  mi xpi 2 di xpi  M i

Membership Function for Quantifying the Moderate Index (ui 2 U3) 8   2 xpi  mi > > > > >   < M i  mi  r pi ¼ μdi xpi ¼ 2 M i  xpi > > > M i  mi > > : 0

xpi 2 ðmi , M ðdi ÞÞ xpi 2 ½M ðd i Þ, M i  xpi  mi or xpi  M i

wherein M(di) ¼ (mi + Mi)/2.

Membership Function for Quantifying the Interval Index (ui 2 U4) 8 voli1  xpi > > 1 > > max fvoli1  mi , M i  voli2 g   < 1 r pi ¼ μdi xpi ¼ > > > x pi  voli2 > :1  max fvoli1  mi , M i  voli2 g

xpi  mi , xpi 2 d i xpi  M i

wherein [voli1, voli2] is the optimal stability interval for the index ui. In addition, for some unquantifiable indicators for which only qualitative evaluation can be carried out, the indicators can be determined by using membership methods for selecting an evaluation level (such as excellent, good, moderate, fair, poor, and so on) to thereby effectively transform qualitative judgment into quantitative analysis.

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

5.5.1.3

257

Method for Quantifying the Evaluation of a Comprehensive Index

There are many methods for quantifying the evaluation of a comprehensive index system, the foremost of which are quantitative methods based on mathematical statistics. The calculation formula is: S¼

n X

W i  xi

i¼1

In the formula, n is the individual number of comprehensive evaluation indicators; n P Wi is the weight of the i-th evaluation indicator, wi ¼ 1; i¼1

xi is the evaluation value of the i-th evaluation indicator; and, S is the value of the comprehensive evaluation indicator. In addition, there are also evaluation methods such as principal component analysis, factor analysis, discriminant analysis as well as quantification methods based on the gray system theory and sustainable barometer quantification methods.

5.5.2

Quantification Method Based on the MTL of the Catch

Global climate change and the high-intensity exploitation of marine fishery resources by humans have led to a continuous decline in traditional marine fishery resources on a global scale. The establishment of an index system that easily assesses and is able to effectively monitor the state of exploitation of fishery resources to thereby avoid declines in fishery resources is of important significance. The concept of MTL of the catch was proposed by Pauly et al. (1998). The trophic level is directly related to external disturbances acting in the ecosystem, and MTL has been used to evaluate the effect of fishing behavior on marine ecosystems by international organizations such as the Convention on Biological Diversity, the European Union, and the Caribbean Large Marine Ecosystem and Adjacent Project (Foley 2013). In recent years, many scholars have thoroughly explored the potential causes of the decrease in the MTL of the catch and have questioned the effectiveness of using MTL as an indicator of the health status of marine ecosystems. Branch et al. (2010) simulated the change trend of MTL under four different fishery exploitation modes: (1) fishing-down the marine food web (fishing-down)—this fishery manifests as a shift in the fishing target from high-trophic level species to low-trophic level species when a decline appears in high-trophic level resources; (2) fishing along the marine food web (fishing-through)—this fishery manifests as a continuous increase in the

258

X. Chen and Q. Ding

catch of low-trophic level species without a decline in high-trophic level species; (3) exploitation until overfishing (increase to overfishing)—this fishery manifests as an accompanying continuous increase in fishing intensity, and all species are gradually exploited until overfishing; and (4) based on the availability of resources (based-on-availability)—this fishery manifests as the exploitation of species that are high in the amount of resources and easy to catch first and the exploitation of species that are low in amount of resources and not easy to catch second. Because the “based-on-availability” mode is not supported by evidence, the observed change trends in MTL are mainly caused by three fishery exploitation modes. The “fishingdown” and “fishing-through” modes cause a decreasing trend in the MTL, whereas the “increase to overfishing” mode does not cause a decrease in the MTL, but the marine ecosystem suffers severe damage. Clarifying the mechanism of change for the MTL is of utmost importance to obtain a comprehensive grasp on the effect of fishing activities on marine ecosystems and formulate effective management measures. However, currently, there is still a lack of research that clearly clarifies the mechanism of potential change in the MTL on global and regional scales. The mechanism of change for MTL of the catch can be determined by independent observation of the changes in high-trophic level and low-trophic level catches. Pauly and Watson (2005) proposed excluding species in a catch with a trophic level of less than 3.25. 3.25MTL is used to observe the changes in the resource amount of medium- and high-trophic level species in a catch, which are usually commercial fishery targets. Furthermore, 3.25MTL is also widely used to exclude situations in fisheries where low-tropic level species in a catch continue to increase and to thereby distinguish between “fishing-down” and “fishing-through” phenomena. However, 3.25 MTL may not be able to effectively assess the effect of fishing behavior on ecosystems in seas with unique community structures and exploitation histories. Although MTL of the catch has been questioned in recent years, it is still widely used to monitor and assess the effect of fishing activities on marine ecosystems at present. The trophic level of the catch is obtained by calculation from the formula of Pauly et al. (1998): MTLi ¼

P ij TL j Y ij P Y ij

In the formula, MTLi is the mean trophic level of the catch in year i, TLj is the trophic level of species j in the catch, and Yij is the catch of species j caught in year i. Pauly and Watson (2005) believed that to accurately assess the effect of fishing behavior on fishery resources, MTL is necessary, as is considering the fishing-inbalance (FiB) index as an indicator of “trophic level balance” in fishery management, using it to assess whether or not the marine ecosystem is in ecological balance. When a decrease in MTL is offset by an increase in yield, the FiB index remains unchanged; when the fishing area expands or the bottom effect occurs, the FiB index increases; and when overfishing of a fishery resource occurs and causes damage to

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

259

an ecosystem’s structure and function, the FiB index decreases (Pauly and Watson 2005). The calculation formula is:   TL    TL  i 0 1 1 FiBi ¼ lg Y i  lg Y 0 TE TE In the formula, Yi is the catch in year i; TLi is the MTL of the catch in year i; TE is the nutrient transformation efficiency, which is set as 0.1 in this study; Y0 and TL0, respectively, refer to the yield and MTL in the base year of index standardization.

5.6

Basic Issues of an Early Warning System for the Sustainable Use of Fishery Resources

Early warning systems were first developed by the military, such as airborne early warning and early warning radar. Later, these systems were gradually applied to economics, early warning of disasters, and other aspects, obtaining good results. For example, the US National Bureau of Economic Research has an early warning system for the US national economy. In China, Wu et al. (1999) studied a regional forest resource early warning system, and Huang and Qu (1999) devised methodology for an early warning system for land ecology and economics and conducted an empirical analysis using agricultural land in Jiangsu Province as an example, illustrating that early warning systems have been initially applied in terms of the management of forest resources and the management and rational utilization of natural resources, such as cultivated land resources in China. As a new management mode and method, early warning systems have unique practical value in the management of marine fishery resources. Because marine fishery resources are distributed throughout a vast ocean, the number and species of resources are difficult to accurately ascertain by humans, and fishery resources are more susceptible to interference from external natural disasters; therefore, they have a higher risk and greater uncertainty than do other resources.

5.6.1

Concept and Connotation of an Early Warning System for the Sustainable Use of Marine Fishery Resources

5.6.1.1

Basic Concept

In Cihai of Chinese, “early” is interpreted as “in advance, beforehand,” and “warning” is interpreted as “alarm or warning”; therefore, “early warning” can be interpreted as “sending out an alarm or warning in advance or beforehand.” We believe that an early warning refers to measuring the current situation and future of a

260

X. Chen and Q. Ding

certain element, forecasting the temporal and spatial scope and the degree of damage of abnormal conditions, and proposing preventive measures and countermeasures. Early warning is different from forecasting, and it is also different from monitoring. They differ in terms of research objects, research methods, research results, and research emphases. Early warning for the sustainable use of marine fishery resources involves measuring the current status and future of marine fishery resources on the basis of comprehensively and accurately grasping the state of movement and the law of change in marine fishery resources; early warning is used to forecast abnormal temporal and spatial scopes and the degree of damage, to propose measures for solving problems that have emerged, to give warnings on problems that will soon appear and to propose preventive and regulatory measures. In brief, early warning for the sustainable use of marine fishery resources involves identifying and eliminating human behaviors that are symptoms of nonsustainable use that appear in the course of the exploitation and utilization of marine fishery resources, thereby realizing the sustainable use of fishery resources and the development of ecological environments in a virtuous direction (Chen 2014). Early warning for the sustainable use of fishery resources is divided into a narrow sense and a broad sense. In a narrow sense, early warning refers to an alarm established in connection with a resource decline or depletion crisis that may appear during the exploitation and utilization of marine fishery resources. In a broad sense, it refers to the whole process from discovering the warning situation, analyzing the warning signs, locating the source of the warning, judging the degree of the warning, and adopting the correct early warning method, as well as eliminating the warning situation in the course of the exploitation and utilization of marine fishery resources. Early warning systems for the sustainable use of marine fishery resources not only have to correctly analyze and judge the economic and ecological and environmental consequences generated by the activities involved in the exploitation and utilization of fishery resources but more importantly, in connection with a warning situation that may appear, must locate the warning source in order to facilitate the adoption of effective measures as soon as possible and control or even defuse the emergence of the warning situation. Taking the recent decline in China’s offshore fishery resources as an example, the human factors that have led to the decline in fishery resources (such as excess fishing capacity) must be analyzed, in addition to the social factors that have caused overfishing as well as natural factors in terms of the degradation of marine ecological environments. Only in this way can further decline and destruction of fishery resources be effectively prevented to ensure the sustainable use of marine fishery resources (Chen 2014). Early warning systems for the sustainable use of marine fisheries are multilevel complex systems that involve marine fishery resources, sustainable development theory, early warning theory, and systems engineering. Marine fishery resources are the research objects, sustainable use is the objective of the research, and early warning is the means and method. The emphasis on the systematic nature of early warning itself means that early warning should be a complete process that includes

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

261

providing clear warnings, finding the warning source, analyzing warning signs, forecasting the warning degree, and eliminating the warning (Chen 2014).

5.6.1.2

Connotation of Early Warning Systems for the Sustainable Use of Marine Fishery Resources

A structure of early warning systems for the sustainable use of marine fishery resources is as shown in Fig. 5.7 (Chen 2014). They are mainly composed of five subsystems, that is, warning situation diagnosis, warning source analysis, warning sign identification, forecasting the warning degree, and warning elimination and regulation: (1) dynamic monitoring of the warning situation—through a full set of monitoring indicators, sensitively reflect the abnormal phenomena and situations that appear during the exploitation and utilization of marine fishery resources, that is, the warning situation; (2) warning source analysis—analyze the source that has generated the warning situation, including natural, social, economic, cultural, policy, and other factors; (3) warning sign identification—identify the various symptoms shown before the warning situation, such as a decrease in the catch, the miniaturization of individual fish, changes in the species composition of the catch, advanced sexual maturity in fish, a decrease in the input to output ratio, deterioration of the ecological environment, and incidences of red tides; (4) forecasting the warning degree—forecasting the warning degree according to warning signs for the severity of the warning situation, the warning degree can generally be divided into none, light, moderate, heavy, and severe; for different warning source indicators, the value range for the warning degree is different; and (5) forecasting and decision-making— corresponding measures and countermeasures to solve the problems that emerge during the exploitation and utilization of fishery resources. The essence of an early warning system is to formulate a series of early warning indicators for the sustainable use of fishery resources in accordance with the basic theory and methods of early warning science in combination with the biological, economic, and social characteristics and the organizational management of marine fishery resource systems and according to the requirements of the sustainable use of marine fishery resources; an additional goal is to determine the reasonable warning limits (that is, threshold values) for early warning indicators on the basis of the qualitative analysis and quantitative evaluation of historical data in combination with Early warning system

Warning situation diagnosis subsystem

Warning source analysis subsystem

Warning identification subsystem

Fig. 5.7 Structural diagram of the early warning system

Warning forecasting subsystem

Warning elimination and regulation subsystem

262

X. Chen and Q. Ding

relevant theoretical research results and an expert judgment system. By measuring the current situation and future of marine fishery resources and announcing the warning situation in a timely manner, timely and accurate feedback and regulation information can be provided to fishery resource management departments and measures and countermeasures can be established to prevent and eliminate warnings.

5.6.1.3

Characteristics of Early Warning Systems

Because marine fishery resources inhabit the vast oceans, are mobile and can be concealed, in the course of the exploitation and utilization of fishery resources, the emergence of warning situations is not as obvious as that of terrigenous natural resources, such as forest resources and cultivated land resources. This generates great challenges for discovering warning situations, judging the degree of a warning, and finding the source of a warning during the exploitation and utilization of marine fishery resources. Early warning systems for the sustainable use of marine fishery resources have the following characteristics (Chen 2014):

A Cumulative and Mutable Warning Situation Abnormal situations that appear in the exploitation and utilization of fishery resources have very strong cumulativeness. The decline and exhaustion that has appeared in China’s offshore fishery resources and the destruction of marine ecological environments did not occur overnight. They are the result of accumulation and precipitation over a comparatively long period of time and the result of an increase from quantitative change to qualitative change. Because fishery resources are a renewable resource, there is a certain ability to regulate the resource system. The cumulativeness of the warning situation requires that when fishery resources are being exploited and utilized, early warning analysis has to cover a certain scope of time and space to identify hidden dangers that may lead to a warning situation. Sudden abnormalities in the exploitation and utilization of fishery resources are determined by the nature of fishery resource systems themselves. The exploitation and utilization of resources have generated an imbalance in fishery ecosystems, including imbalances within fishery resource systems and imbalances between fishery resources and human social systems. In particular, with some small pelagic fish with very strong sociability, it is easy to find the center of the school of fish and catch them by relying on advanced fish detection equipment and satellite remote sensing. When the emergence of a decrease in the catch is discovered, the resource may decline to the extent of being unable to recover; therefore, the suddenness of this warning situation is stronger. The mutagenicity of a warning situation requires forecasting for early warnings in early warning systems, in order to discover warning signs as early as possible, especially in terms of biological indicators, and to provide practical and feasible measures to defuse the warning situation.

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

263

The Hysteresis of Warning Signs Due to the cumulative features of a warning situation, the unfavorable consequences generated by the exploitation and utilization of marine fishery resources can only appear after a lag period. However, different fishery species have different lengths of lag time. Generally, fish resources with long life cycles have a long lag time; they require at least a few years or more, and their resource base is not easily damaged. Pelagic fish resources, which have a short life cycle, have a short lag time, and the resources are easily damaged. However, after warning signs have been displayed, the damage caused by the warning situation has already reached a considerable degree. Therefore, in early warning analysis, some corresponding advance indicators must be used; only then can one ensure that the decision-making subsystem of the early warning system adopts effective measures.

Complexity of the Warning Source Because there are relationships between species of fishery resources, such as population competition, population symbiosis, and population substitution, there are more complex relationships between fishery resources and marine environment conditions; therefore, when carrying out early warning analysis on the exploitation and utilization of a certain fishery resource, it is necessary to consider interspecies relationships that may exist, such as between target species and bycatch species. There are many complex reasons that generate fishery resource warning situations, including pollution of marine environments, overfishing, the social economy, fishery management factors, and so on.

5.6.2

The Meaning of Early Warning Indicators

In an early warning system for the sustainable use of marine fishery resources, viewed from the connotation of early warning indicators, there are warning situation indicators, warning source indicators, and warning sign indicators (Chen 2014).

5.6.2.1

Warning Situation Indicators

A warning situation is an abnormal phenomenon or situation that appears in the course of development, that is, the various problems that already exist in the course of the exploitation and utilization of marine fishery resources or that may appear in the future. Statistical indicators used to describe and characterize these various problems or abnormal phenomena (that is, warning situations) are referred to as warning situation indicators. When marine fishery resources are being exploited and utilized, if there is a deviation from the “reasonable interval” or “track” of

264

X. Chen and Q. Ding

sustainable use, then fishery resources enter a warning situation regarding the utilization process. Specifically, China’s current marine catch yield is predominantly low-value, small-sized fish, and frequent red tide incidents have occurred offshore. These observations indicate that fishery resources have encountered a warning situation.

5.6.2.2

Warning Source Indicators

The source of a warning refers to the source that has generated the warning situation, which is an existing or latent problem or “crisis” during the exploitation and utilization of marine fishery resources. Statistical indicators used to describe and characterize warning sources are referred to as source warning indicators. Viewed from the generation of the source of a warning, warning source indicators can be divided into four categories: (1) autogenous warning source indicators are used to describe the self-factors in fishery resource systems, such as the operational area of the fishing grounds, the fish species structure, the age structure of the fish species, biodiversity, and so on; (2) natural warning source indicators are used to describe various natural disasters that cause damage to fishery resource systems, such as meteorological disasters, tsunamis, and El Niño; (3) exogenous warning source indicators are used to describe the external input of fishery resources, and the mechanism of action for these exogenous warning sources is very complicated; for example, an increase in market prices stimulates the excessive exploitation of fishery resources, leading to a decline in fishery resources; and (4) endogenous warning source indicators are used to describe the internal self-operating state of fishery resource systems, such as fishery property rights systems and fishery resource management. Viewed from the degree to which the warning source is uncontrollable, the warning source indicators can be divided into three categories: (1) strong controllable warning source indicators, such as endogenous warning sources; (2) weak controllable warning source indicators, such as the current status of fishery resources; and (3) uncontrollable warning source indicators, such as natural warning sources.

5.6.2.3

Warning Sign Indicators

Warning signs refer to evidence that appears before the outbreak of a warning situation caused by the occurrence of an abnormal change in a warning element. Statistical indicators used to describe and characterize warning signs are referred to as warning sign indicators. Warning sign indicators are also called leading indicators. They compose the main body of the early warning index and are the only early warning indicator that is able to directly provide early warning signals. The purpose of an early warning system for marine fishery resources is to provide an information basis for macro fine-tuning by marine fishery resource management. Warnings are provided in advance with enough time to study countermeasures and organize

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

265

implementation. To this end, reasonable warning sign indicators must first be established. According to operating time, warning sign indicators can also be divided into leading indicators, coincident indicators, and lagging indicators. Warning signs can also be divided into prosperity warning signs and trend warning signs. Prosperity warning signs are generally based on the motion of real objects and represent the degree of prosperity in a certain aspect of a fishery resource system, such as water area and fish production. Trend warning signs refer to those value indicators that cannot directly express the degree of prosperity of a fishery resource system, such as the income of fishermen and the price of aquatic products. Generally, different warning elements correspond to different warning signs, and the same warning element may also display different warning signs under specific time and space conditions. Warning situation indicators are the object of early warning research, and they represent existing or latent problems during the exploitation and utilization of fishery resources. A warning situation is generated by the warning source; furthermore, warning signs will certainly be generated before an outbreak. Finding the warning source is the basis for analyzing warning signs and a prerequisite for eliminating the warning. Therefore, an early warning system for the sustainable use of marine fishery resources must use warning situation indicators as the object, use warning source indicators as the basis, and use warning sign indicators as the main body.

5.6.3

Operating Mechanism for Early Warning Systems for the Sustainable use of Marine Fishery Resources

Systems science is the basis of early warning system theory for fishery resources and the basic means to solving early warning system problems. If one considers time and logic, then the operating mechanism for early warning systems can be represented as a two-dimensional table (Table 5.3) (Chen 2014). For the time dimension, the operating mechanism is as follows: data collection ! system analysis ! system Table 5.3 Two-dimensional table for the operating mechanism of an early warning system

Time dimension Data collection System analysis System design System implementation

Logic dimension Monitor the Find the warning warning situation source A11 A12 A21 A22

Analyze the warning signs A13 A23

Forecast the warning degree A14 A24

Eliminate the warning source A15 A25

A31 A41

A33 A43

A34 A44

A35 A45

A32 A42

266

X. Chen and Q. Ding

Warning monitoring system for a marine fishery resource system Warning source analysis system for marine fishery resources Warning sign identification system for marine fishery resources Comprehensive forecasting system: establish a forecasting model for early warning system Forecast the warning degree: determine and forecast the warning degree of the early warning index Early warning index

Change curve

Upper warning limit Ideal value Lower warning limit

Threshold value

Time

Expert database of preventive control countermeasures

Eliminate the warning: Announce the warning situation and eliminate the warning

Regulation system for the sustainable use of marine fishery resources

Fig. 5.8 One-dimensional operating mechanism for an early warning system

design ! system implementation (Table 5.3); for the logic dimension, the operating mechanism is as follows: monitor the warning situation ! find the warning source ! analyze the warning signs ! forecast the warning degree ! eliminate the warning source (Table 5.3). If analyzed from the logic dimension alone, one can construct a one-dimensional operating mechanism diagram of an early warning system (Fig. 5.8). From the one-dimensional process diagram of the operating mechanism, monitoring of the warning situation is the basis of early warning research; finding the warning source involves analyzing the cause that generated the warning and the basis for eliminating the warning; analyzing the warning signs is the basis for forecasting the warning degree; forecasting the warning degree is the basis for eliminating the warning; and eliminating the warning is the goal of the early warning system.

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

5.6.4

Constructing an Early Warning Index Framework for the Sustainable Use of Fishery Resources

5.6.4.1

Conditions and Principles for Selecting Early Warning Indicators

267

The key to the success of early warning systems for the sustainable use of marine fishery resources is in the ability to determine early warning indicators, especially warning sign indicators. Therefore, it is necessary to carefully screen, from a large number of fishery statistical indicators, and select a set of the most representative leading indicators (Chen 2014). For example, the US National Bureau of Economic Research screened 72 indicators from hundreds of statistical indicators and selected 36 leading indicators that have a predictive role in national economic development, forming a comprehensive leading index system.

Conditions for Selecting Early Warning Indicators To ensure that early warning indicators provide early warning, selected indicators must be able to correctly evaluate the current and historical states of exploitation and utilization of fishery resources. Through these indicators, the normal and abnormal states of fishery resource utilization can be naturally judged, creating conditions for carrying out early warning for future development. Additionally, the selected indicators must be able to accurately predict future development trends of fishery resources and reveal a reasonable interval for a state of sustainable use of fishery resources. Finally, the selected indicators must be able to reflect regulation effects on fishery resources as a whole in a timely and sensitive manner. Controlling abnormal phenomena in a fishery resource system enables fluctuations of resource systems to be carried out within a reasonable interval and not depart from this range.

Principles for Screening Early Warning Indicators Early warning indicators must be carefully screened from a large number of statistical indicators. Statistical indicators are the basis of research on early warning indicators, and monitoring indicators should be emphasized in early warning indicator selection to scientifically select early warning indicators. To this end, the following principles must be adhered to: 1. Operability principle. The selected and designed early warning indicators should

268

2.

3.

4.

5.

X. Chen and Q. Ding

be operable. To fully consider the degree of difficulty in quantifying data and their indicators, its practicality and data access should be considered; additionally, the comprehensive reflection of various connotations in fishery resource systems must be ensured. Existing statistical indicators and relevant normative standards must be utilized as much as possible. Accuracy and sensitivity principle. The designed early warning indicators must accurately and sensitively reflect the various problems, changes, and development trends that emerge in the course of the exploitation and utilization of marine fishery resources. The accuracy and sensitivity principle is manifested in early warning time efficiency and early warning degree display. With regard to early warning time efficiency, early warning indicators should provide early warning signals in a fast and timely manner in connection with various warning situations that appear in the current course of the exploitation and utilization of fishery resources. In terms of early warning degree display, early warning indicators must have a comparatively strong ability to reflect changes in the operating state of fishery resources and accurately display them, in order to facilitate a clear reflection of the degree of sustainable use of fishery resources in the operating process. Reliability and adequacy principle. The data source for designed early warning indicators must be reliable, and the number of statistical data samples must be large; that is, there must be a comparatively long time series to satisfy the needs of forecasting. Only early warning indicators that are based on reliable and adequate data can be used to carry out time series analysis of the operating state of a fishery resource system and establish a corresponding dynamic early warning model, thereby realizing the purpose of early warning. Mutual matching principle. Early warning indicators must be mutually matched with specific warning elements and specific early warning methods; that is, for different warning elements, the early warning indicators differ from one another, and for different early warning methods, the warning indicators are also different. Dynamic principle. As conditions change over time, change occurs in fishery resource systems, and individual early warning indicators may no longer have predictive roles. Therefore, it is necessary to use new early warning indicators to replace and adjust older parameters, at appropriate times, to ensure that early warning indicators are sufficiently representative.

The selection of early warning indicators to a great extent determines whether an early warning system for the sustainable use of marine fishery resources can be successfully realized. Therefore, in the process of screening and designing early warning and forecasting, the aforementioned conditions and principles should be well understood. In the process of synthesizing, comparing, and selecting early warning indicators, the importance of various indicators cannot be treated equally; therefore, the weight coefficient of indicators should be determined scientifically.

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

5.6.4.2

269

Constructing a Framework for an Early Warning Index System for the Sustainable Use of Marine Fishery Resources

Utilizing a single leading early warning indicator will often cause failure or error in early warning systems. For example, in 1929, a single indicator was used in an early economic warning method for the Harvard ABC curve in the United States but failed; the selected single indicator was not reliable, and more importantly, it was difficult for a single indicator to accurately and completely reflect the entire early warning object. The exploitation and utilization of marine fishery resources is a compound system composed of multilevel subsystems and multifaceted elements. The development process will be disturbed by various factors, including natural (such as the El Niño phenomenon) and human factors (such as fishing), which also include internal (such as decreased fecundity) and external (such as human interference) factors, leading to the appearance of various types and varieties of problems in the course of the exploitation and utilization of fishery resources. Therefore, the complexity of warning elements in a fishery resource system cannot be reflected by just one indicator. It is necessary to establish an early warning index system for the sustainable use of marine fishery resources, especially a warning sign index system. An early warning index system for the sustainable use of marine fishery resources mainly includes three aspects: early warning for resources and the environment, early warning for social sustainable development, and early warning for economic sustainable development. 1. Early warning for resources and the environment. Early warning for resources and the environment involves providing warnings about abnormal phenomena that appear in a fishery resource system itself and in the relationship between the system and external environmental factors. Early warning for resources includes the species composition of the catch, the individual composition of the catch, the amount of resource in the target object, the fishing exploitation rate, and the direct effect of fishing gear on target fish species. Early warning for the environment includes the effect of fishing on the food chain, the direct effect of fishing gear on important habitats, biodiversity, changes in the area and quality of important habitats, environmental pollution, and fishing pressure, that is, the ratio of the operational sea area to the nonoperational sea area. The establishment of an early warning system for resources and the environment requires long-term observation and research. 2. Early warning for social sustainable development. Early warning for social sustainable development refers to providing warnings based on the appearance of an unsustainable phenomenon in the social sustainable development of fisheries. It mainly includes the employment rate of fisheries, the population of fisheries, the level of education received by the fishery labor force, the amount of protein provided to humans, the per capita consumption of aquatic products, and changes in the traditional customs and culture of marine fisheries. 3. Early warning for economic sustainable development. Early warning for economic sustainable development refers to providing warnings based on the

270

X. Chen and Q. Ding

deviation of the economic sustainable development of fisheries from a reasonable track. Early warning indicators for the sustainable development of fishery resources include catch, catch production, fishery production as a proportion of GDP, fishery export production (or the ratio to the total export production), fishery subsidies, per capita fishermen income, and so on.

5.7

Empirical Analysis—Sustainable Use Assessment of Marine Fishery Resources in Various Fishing Areas around the Globe

The Pacific Ocean, the Atlantic Ocean, and the Indian Ocean are the main sea areas for marine fishing operations, with the yield accounting for more than 98% of the global marine catch. Moreover, the degree to which each fishing area is affected by the environment and the exploitation mode are different, and therefore, it is necessary to evaluate each fishing area separately. In this section, on the basis of an analysis of the changes in the MTL in each fishing area of the three oceans around the globe from 1950 to 2010 and going one step further by observing the changes in catches of high-trophic level species and low-trophic level species, the potential change mechanism for the MTL of the catch is assessed on a global scale and a regional scale with the aim of deepening the understanding of the potential change mechanism of MTL. In addition, the effect of community structure and exploitation history on the effectiveness of utilizing 3.25MTL to distinguish between the “fishingdown” and “fishing-through” phenomena is further explored.

5.7.1

Catch Statistics and Trophic Level Data

The catch data from 1950 to 2010 used in this study were from the United Nations FAO website (http://www.fao.org/fishery/Statistics/global-Capture-production/ query/en) and were downloaded using the classification method of the international standard statistical classification of aquatic animals and plants (ISSCAAP). The trophic levels of relevant species were taken from Fishbase’s ISSCAAP table (http://www.fishbase.org/report/ISSCAAP/ISSCAAPSearchMenu.php). For some trophic levels that were not accurate for the species, the trophic levels of their families were used. Table 5.4 lists the trophic levels of the main catch species. Because this study mainly discusses the effect of fishing activities on the main fishery resources and the classification of some miscellaneous fish is not revealed, aquatic plants, freshwater fish, miscellaneous aquatic animal products, miscellaneous aquatic animals, whales, seals, other aquatic mammals, and miscellaneous fish in the ocean are not within the scope of the discussion (Ding 2017).

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

271

Table 5.4 Trophic levels of the 20 main fishing species according to the catch in 2010 (Ding 2017) Species name Anchoveta Alaska pollock Skipjack tuna Atlantic herring Chub mackerel Largehead hairtail Yellowfin tuna Scads nei Japanese anchovy European pilchard Sardinellas nei Atlantic cod Atlantic mackerel Jumbo flying squid Croakers, drums nei Marine molluscs nei Araucanian herring California pilchard Chilean jack mackerel Natantian decapods nei

5.7.2

Scientific name Engraulis ringens Theragra chalcogramma Katsuwonus pelamis Clupea harengus Scomber japonicus Trichiurus lepturus Thunnus albacares Decapterus spp. Engraulis japonicus Sardina pilchardus Sardinella spp. Gadus morhua Scomber scombrus Dosidicus gigas Sciaenidae Mollusca Strangomera bentincki Sardinops caeruleus Trachurus murphyi Natantia

Trophic level 2.70 3.45 4.35 3.23 3.09 4.45 4.34 3.53 2.56 3.05 2.82 4.42 3.65 4.14 3.67 2.10 2.69 2.43 3.49 2.20

Evaluation Method Based on Trophic Level of the Catch

Trophic level of the catch is obtained by calculation from the formula of Pauly et al. (1998): P ij TL j Y ij MTLi ¼ P Y ij In the formula, MTLi is the mean trophic level of the catch in year i, TLj is the trophic level of species j, and Yij is the catch of species j caught in year i. Essington et al. (2006) used a magnitude of decrease greater than 0.15 in the MTL as the basis of ecological significance for the “fishing-down” phenomenon. To reduce the possibility of overestimating “fishing-down,” the “fishing-down” phenomenon is defined in this study as a magnitude of decrease greater than 0.15 in the MTL and a cycle of decrease greater than 10 years. Changes in MTL with time is quantified by regression analysis, and the degree of fitting is determined by the determination coefficient R2 and the significance level.

272

X. Chen and Q. Ding

The fishing-in-balance index FiB, as an indicator of “trophic level balance” in fishery management, is used to assess whether the marine ecosystem is in ecological balance (Pauly et al. 2000). Its calculation formula is:   TL    TL  i 0 1 1 FiBi ¼ lg Y i  lg Y 0 TE TE In the formula, Yi is the catch in year i; TLi is the MTL of the catch in year i; TE is the nutrient transformation efficiency, which is set as 0.1 (Pauly and Christensen 1995); Y0 and TL0 are, respectively, the yield and MTL in the base year of index standardization. The potential mechanisms of the “fishing-down” and “fishing-through” modes are significantly different. Under the two modes, when MTL presents a downward trend, the catches of low-trophic level species increase, the catches of high-trophic level species continue to decrease under the “fishing-down” mode, and the catches of high-trophic level species under the “fishing-through” mode remain stable or gradually increase (Essington et al. 2006). In this study, the corresponding value when a decrease starts to appear in MTL is used as the cut-off point between high-trophic level species and low-trophic level species, and the changes in the catches of hightrophic level species and low-trophic level species are observed when MTL presents a downward trend. Given that successful fishery management and the decline in low-trophic level species can both cause MTL to present an increasing recovery trend, the changes in the catches of the aforementioned high-trophic level species and low-trophic level species when the MTL presents a significantly increasing recovery trend (a magnitude of increase in MTL exceeding 0.15 from the year corresponding to the minimum MTL to 2010) is further explored in this study. For the seas in which the MTL presents an increasing trend overall, the MTL of the base year (1950) is used as the cut-off point to divide the catches into high-trophic level species and low-trophic level species, the linear regression equation for the logarithm of yield over time for the high-trophic level species and low-trophic level species are fitted, and the significance level is tested. To accurately observe the species composition at different trophic levels and changes in catches and to grasp the dynamic composition of marine ecosystems in various seas, this study divides the exploited species in the catch into three major trophic categories: trophic category 1 (TrC1:TL: 2.00–3.00): herbivorous, detritivorous, and omnivorous fish; trophic category 2 (TrC2:TL: 3.01–3.50): mid-level carnivorous fish; and trophic category 3 (TrC3:TL: >3.51): high-level carnivorous fish and top-level predators (Ding 2017). Due to the comparatively hightrophic level of cephalopods, they are regarded as a separate category. With the addition of crustaceans and mollusks, catch composition is divided into six categories. To explore the effect of fishery exploitation history on monitoring the changes in mid-to-high-trophic level species in marine ecosystems by using 3.25MTL as an evaluation indicator, the MTL of each sea from 1950 to 2010 is calculated two times

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

273

in accordance with Pauly and Watson (2005): once in connection with all species in the catch and again to eliminate the species in the catch with a trophic level of less than 3.25. Both MTL and 3.25MTL are quantified using linear regression models (Ding 2017).

5.7.3

Changes in the MTL of the Global Catch

Figure 5.9a shows the changes in the catches of the three oceans from 1950 to 2010. The catch gradually increased from 14.86 million t in 1950 to 73.74 million t in 1996, which was the highest value; after 1996, the catch gradually decreased, and the catch in 2010 was 65.30 million t. The MTL of the three oceans decreased from the highest value of 3.50 in 1955 to the lowest value of 3.21 in 1986, at a rate of 0.057/ 10 years (R2 ¼ 0.48, P < 0.05) (Ding 2017). Because the yield in Peruvian anchoveta (Engraulis ringens) increased greatly from the 1960s to the early 1970s, there was a large decrease in MTL during this period. With the decline in Peruvian anchoveta from 1972 to 1973, the MTL continued to decrease from 1973 to 1986, and then, it gradually increased to 3.37 in 2010 (Fig. 5.9b) (Ding 2017). The FiB index increased rapidly from the base value of 0 in 1950 to 0.44 in 1973, which shows that due to the geographic expansion of fisheries, the decrease in MTL was compensated by the increase in catch; after that, the FiB index decreased first and then gradually increased and stabilized at approximately 0.54 (Fig. 5.9c) (Ding 2017). Among the 14 FAO fishing areas in the three oceans, significant decreases appeared in the MTLs of 10 FAO fishing areas. Among them, the MTLs and FiB indexes of the Northwestern Atlantic Ocean, Northeastern Atlantic Ocean, Southwestern Atlantic Ocean, and Southwestern Pacific Ocean all presented significant downward trends (Table 5.5) (Ding 2017). The MTL of the Northwestern Atlantic Ocean decreased at a rate of 0.24/10 years from 1965 to 2010; the MTL of the Northeastern Atlantic Ocean decreased at a rate of 0.064/10 years from 1969 to 1992; the MTL of the Southwestern Atlantic Ocean decreased at a rate of 0.12/ 10 years from 1996 to 2010; and the MTL of the Southwestern Pacific Ocean decreased at a rate of 0.16/10 years from 2000 to 2010. However, when the MTLs of the other six fishing areas gradually decreased, their FiB indexes showed no significant changes or presented increases. Specifically, the MTL of the Mid-eastern Atlantic Ocean decreased at a rate of 0.040/10 years from 1982 to 2010, and the MTL of the Mid-eastern Pacific Ocean decreased at a rate of 0.065/10 years from 1964 to 2010. Notably, the MTL of the Northwestern Pacific Ocean decreased at a rate of 0.17/10 years from 1963 to 1988, the MTL of the Southeastern Pacific Ocean decreased at a rate of 0.18/10 years from 1952 to 1985, and the MTL of the Eastern Indian Ocean decreased at a rate of 0.08/10 years from 1952 to 1987. Then after, the MTLs of the aforementioned three fishing areas all presented upward recovery trends, and the FiB indexes also gradually increased. The MTL of the Southeastern Atlantic Ocean decreased at a rate of 0.18/10 years from 1950 to 1963, and recovery

274

(a)

80

Yield/10 6t

60

40

20

0 1950

1960

1970

1980

1990

2000

2010

Year

(b)

3.6 3.5

MT L

3.4 3.3 3.2 3.1 













1990

2000

2010

1990

2000

2010

Year

(c)

0.6

FiB index

0.5 0.4 0.3 0.2 0.1 0 1950

1960

1970

1980

Year

(d)

7.8 7.6

log (yield)

Fig. 5.9 Change trends for the three oceans from 1950 to 2010. (a) yield; (b) mean tropic level of the catch; (c) FiB index; (d) log (yield) of high-trophic level (●) and low-trophic level (○) species (Ding 2017)

X. Chen and Q. Ding

7.4 7.2 7.0 6.8 1950

1960

1970

1980

Year

Fishing area Northwestern Atlantic Ocean Northeastern Atlantic Ocean Mid-western Atlantic Ocean Mid-eastern Atlantic Ocean Southwestern Atlantic Ocean Southeastern Atlantic Ocean Western Indian Ocean Eastern Indian Ocean

Change trend for FiB index Decrease

Decrease

Increase

No significant trend Decrease

Increase

Increase Increase

Rate of decrease in MTL/10 years 0.24

0.064

Increase

0.040

0.12

0.18

Increase

0.080

Regression year 1965–2010

1969–1992

1950–2010

1982–2010

1996–2010

1950–1963

1984–2010

1952–1987

Increase

Increase

Decrease

Increase

Decrease

Change trend for yield of hightrophic level species Decrease

Increase

Increase

No significant trend

Increase

No significant trend

Change trend for yield of low-trophic level species Decrease

1987–2010

1963–1972 1972–2010

1992–2010

Regression year

0.070

0.68 No significant trend

0.066

Rate of increase in MTL recovery/ 10 years

Increase

Increase Decrease

No significant trend

Change trend for FiB index

Increase

Increase Decrease

No significant trend

Change trend for yield of hightrophic level species

(continued)

Increase

No significant trend Decrease

Decrease

Change trend for yield of low-trophic level species

Table 5.5 Changing trends in the rate of change for the mean trophic level of the catch in 14 fishing areas of three oceans around the globe as well as the corresponding FiB index and yield in high-trophic level and low-trophic level species (Ding 2017)

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . . 275

Increase Increase Decrease Increase

Increase

Increase

0.065

0.16

0.18

1950–2010

1950–1985

1964–2010

2000–2010

1952–1985

Increase

Decrease

Increase

Change trend for yield of hightrophic level species No significant trend

No significant trend Increase

Increase

Change trend for yield of low-trophic level species Increase

1985–2010

Regression year 1988–2010

0.084

Rate of increase in MTL recovery/ 10 years 0.090

Note: All values in the table are significant (P < 0.05); “increase” and “decrease” are significant (P < 0.05)

Fishing area Northwestern Pacific Ocean Northeastern Pacific Ocean Mid-western Pacific Ocean Mid-eastern Pacific Ocean Southwestern Pacific Ocean Southeastern Pacific Ocean

Change trend for FiB index No significant trend Increase

Rate of decrease in MTL/10 years 0.17

Regression year 1963–1988

Table 5.5 (continued)

No significant trend

Change trend for FiB index Increase

Increase

Change trend for yield of hightrophic level species Increase

No significant trend

Change trend for yield of low-trophic level species Decrease

276 X. Chen and Q. Ding

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

277

gradually increased from 1964 to 1972. Then after, the MTL stabilized at approximately 3.44, and the FiB index decreased greatly from 1972 to 2010 (Table 5.5). The MTLs of the Mid-western Atlantic Ocean, Western Indian Ocean, Northeastern Pacific Ocean, and Mid-western Pacific Ocean presented gradual upward trends from 1950 to 2010 (Table 5.5). After a decrease, it gradually increased and stabilized at approximately 0.54 (Fig. 5.9c) (Ding 2017).

5.7.4

The Potential Change Mechanism for MTL

The catches of high-trophic level species (R2 ¼ 0.85, P < 0.05) and low-trophic level species (R2 ¼ 0.85, P < 0.05) in the seas of the three oceans all presented significant upward trends from 1955 to 1986, showing a “fishing-through” phenomenon in global waters (Fig. 5.9d) (Ding 2017). Among the 10 FAO fishing areas where the MTL decreased significantly, the catches of high-trophic level species increased significantly in the Southeastern Atlantic Ocean, Eastern Indian Ocean, Mid-eastern Pacific Ocean, and Southeastern Pacific Ocean, while there were no significant trends in the catches of high-trophic level species in the Mid-eastern Atlantic Ocean and Northwestern Pacific Ocean, indicating that the “fishing-through” phenomenon occurred in the aforementioned sea areas (Table 5.5). The yield in hightrophic level species decreased significantly in the Northwestern Atlantic Ocean, Northeastern Atlantic Ocean, Southwestern Atlantic Ocean, and Southwestern Pacific Ocean, indicating that the “fishing-down” phenomenon occurred, and the catches of low-trophic level species displayed no obvious change trends in the aforementioned seas (Table 5.5) (Ding 2017). The MTLs of the three oceans around the globe presented upward trends after experiencing significant decreases (Fig. 5.9b). In this study, the corresponding value when a decrease begins to appear in the MTL is used as the cut-off point between high-trophic level species and low-trophic level species, and the changes in the catches of high-trophic level species and low-trophic level species when the MTL presents an increased state of recovery is further tested. The results indicate that the yield in low-trophic level species decreased significantly (R2 ¼ 0.58, P < 0.05) and that the yield in high-trophic level species increased steadily (R2 ¼ 0.92, P < 0.05) (Fig. 5.9d). The MTLs in the Northeastern Atlantic Ocean, East Indian Ocean, Northwestern Pacific Ocean, and Southeastern Pacific Ocean presented upward recovery trends in recent years. However, although the catches of high-trophic level species all gradually increased or no obvious change trend was observed in the aforementioned four seas, the catches of low-trophic level species decreased greatly in the Northeastern Atlantic Ocean and Northwestern Pacific Ocean (Table 5.5) (Ding 2017). The MTLs in the Mid-western Atlantic Ocean, Northeastern Pacific Ocean, Mid-western Pacific Ocean, and Western Indian Ocean presented large fluctuating upward trends (Table 5.5). In this study, the changes in the yield of high-trophic level species and low-trophic level species are fitted, indicating that the yields of

278

(a) 6.4 6.2 6.0

log (yield)

Fig. 5.10 Changes from 1950 to 2010 in the log (yield) of high-trophic level (●) and low-trophic level (○) species. (a) Mid-western Atlantic Ocean; (b) Western Indian Ocean; (c) Northeastern Pacific Ocean; (d) Mid-western Pacific Ocean (Ding 2017)

X. Chen and Q. Ding

5.8 5.6 5.4 5.2 5.0 1950

1960

1970

1980

1990

2000

2010

1990

2000

2010

1990

2000

2010

1990

2000

2010

Year

(b) 6.4

log (yield)

6.1

5.8

5.5

5.2 1950

1960

1970

1980

Year

(c) 6.4

log (yield)

6.2 6.0 5.8 5.6 5.4 5.2 1950

1960

1970

1980

Year

(d) 7.0

log (yield)

6.6 6.2 5.8 5.4 5.0 1950

1960

1970

1980

Year

high-trophic level species and low-trophic level species in the Mid-western Pacific Ocean and Western Indian Ocean both presented significant upward trends (Fig. 5.10). However, the yield of low-trophic level species in the Mid-western

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

(a)

3.0

Cephalopods Mollusks Crustaceans

2.5

Yield/10 6t

279

TrC3 TrC2 TrC1

2.0

1.5 1.0

0.5 0.0 1950

1960

1970

1980

1990

2000

2010

Year (b)

4.1

MT L

3.9

3.7 3.5 MTL

3.3

TL˚3.25

3.1 1950

1960

1970

1980

1990

2000

2010

Year (c)

4.1

MT L

4.0

3.9

3.8

3.7 1950

1960

1970

1980

1990

2000

2010

Year Fig. 5.11 Changes in the yield and MTL in the Southwestern Atlantic Ocean from 1950 to 2010. (a) Catch composition; (b) MTL and 3.25MTL; (c) MTL after excluding cephalopods and species with a trophic level lower than 3.25 (Ding 2017)

280

X. Chen and Q. Ding

Atlantic Ocean started to decrease greatly beginning in 1984 (R2 ¼ 0.53, P < 0.05) and the catch of high-trophic level species also gradually decreased from 1998 to 2010 (R2 ¼ 0.67, P < 0.05). The catch of low-trophic level species in the Northeastern Pacific Ocean started to present a significant downward trend beginning in 1987 (R2 ¼ 0.46, P < 0.05) (Fig. 5.10) (Ding 2017).

5.7.5

The Effect of Fishery Exploitation History on the Effectiveness of the 3.25MTL Indicator

The catch in the Southwestern Atlantic Ocean reached the highest value of 2.6 million t in 1997, after which the catch fluctuated between 1.7 and 2.5 million t (Fig. 5.11a) (Ding 2017). The catch of the Southwestern Atlantic Ocean was mainly composed of high-trophic level TrC3 and cephalopods (Fig. 5.11a). As an important fishing sea for cephalopods, the exploitation of cephalopods in the Southwestern Atlantic Ocean started to accelerate after the 1980s. The MTL of the Southwestern Atlantic Ocean decreased steadily from 1996 to 2010, at a rate of 0.12/10 years (R2 ¼ 0.84, P < 0.05), but its 3.25MTL gradually increased beginning in 1950 and stabilized in the 1970s, with no significant downward trend (Fig. 5.11b). After excluding species in the catch with a trophic level of less than 3.25 and cephalopods, the MTL of the Southwestern Atlantic Ocean began to decrease steadily beginning in the mid-1990s (R2 ¼ 0.80, P < 0.05) (Fig. 5.11c) (Ding 2017).

References Branch TA, Watson R, Fulton EA et al (2010) The trophic fingerprint of marine fisheries. Nature 468(7322):431–435 Chen XJ (2004) Theory and method of sustainable utilization evaluation of fishery resources. China Agriculture Press. (in Chinese) Chen XJ (2014) Fishery resource economics. China Agriculture Press. (in Chinese) Chesson J, Clayton H (1998) A framework for assessing fisheries with respect to ecologically sustainable development. Bureau of Resources Sciences. Fisheries Resources Branch, Australia, pp. 19 Cury PM, Shannon LJ, Roux JP et al (2005) Trophodynamic indicators for an ecosystem approach to fisheries. ICES J Mar Sci 62(3):430–442 Ding Q (2017) Evaluation of sustainable use of global marine fishery resources based on catch statistics. Shanghai Ocean University, Shanghai. (in Chinese) Essington TE, Beaudreau AH, Wiedenmann J (2006) Fishing through marine food webs. Proc Natl Acad Sci U S A 103(9):3171–3175 Foley CMR (2013) Management implications of fishing up, down, or through the marine food web. Mar Policy 37:176–182 Huang XJ, Qu FT (1999) The theory and methods for early warning system of cultivated land eco-economy. Ecol Econ 5:14–17. (In Chinese) Michael AT (1992) The difficulty in defining sustainability. Global Development and the environment. Future Resources Institute

5 Assessment of the Sustainable Use of Fishery Resources and an Early Warning. . .

281

Pauly D, Christensen V (1995) Primary production required to sustain global fisheries. Nature 374 (6519):255–257 Pauly D, Christensen V, Dalsgaard J et al (1998) Fishing down marine food webs. Science 279 (5352):860–863 Pauly D, Christensen V, Walters C (2000) Ecopath, Ecosim, and Ecospace as tools for evaluating ecosystem impact of fisheries. ICES J Mar Sci 57(3):697–706 Pauly D, Watson R (2005) Background and interpretation of the marine trophic index as a measure of biodiversity. Philos Trans R Soc B: Biol Sci 360(1454):415–423 Pearce DW, Turner RK (1990) Economics of natural resources and the environment. Harvester Wheatsheaf, London Prescott AR (1996) Barometer of sustainability. What it’s for and how to use it. The World Conservation Union (IUCN). Gland, Switzerland, p 25 Slesser M (1990) Enhancement of carrying capacity option ECCO. The Resource Use Institute, London Wackernagel M (1999) Why sustainability analyses must include biophysical assessments. Ecol Econ 29:13–15 Wackernagel M, Onisto L, Bello P et al (1999) National natural capital accounting with the ecological footprint concept. Ecol Econ 29:375–390 Wackernagel M, Rees W (1996) Our ecological footprint—reducing human impact on the earth. New Society Publishers, Toronto, p 76 Walpole M, Almond REA, Besançon C et al (2009) Tracking progress toward the 2010 biodiversity target and beyond. Science 325(5947):1503–1504 Wu C Y, Yuan D (1999). Extension and application of pressure-state-response frame model. Deng Nan, ed. Sustainable Development: Human Living environment-proceedings of the Chinese Society for Sustainable Development, Pp. 14–19. Publishing House of Electronics Industry (In Chinese) Wu YX, Chen ML, Zhou GM et al (1999) Indicators' early-warning of regional forest resources sustainable development. J Zhejiang For Coll 16(1):61–65. (In Chinese)

Chapter 6

Theories and Methods of Fishery Resource Accounting Xinjun Chen

Abstract Natural resource accounting is the basis of ensuring the sustainable utilization and scientific management of resources. Natural resource value accounting has achieved good results in water resources, mineral resources, and other fields. As an important natural resource, the accounting of fishery resources in the world is still in the stage of exploration because of its particular features, such as invisible and migrating. Iceland has carried out the research and trial work of integrating fishery resources into the national economic accounting system, and Norway and other countries have also carried out the work of fishery resources accounting, which have gained some results. This chapter will systematically introduce the theory and methods of fishery resource accounting, mainly includes: (1) the background and research progress of natural resource accounting; (2) the concept, basic principle, and research content of fishery resource accounting, and the analysis of the physical quantity accounting and value accounting of fishery resources; (3) the value accounting of shrimp as an example. Keywords Resource accounting · Fishery resource accounting · Chinese white shrimp · Value accounting

6.1

Natural Resource Accounting and its Research Progress

6.1.1

Background on Natural Resource Accounting

6.1.1.1

National Economic Accounting Systems without Counting the Decrease or Increase in Natural Resources

National economic accounting refers to the measurement of the human power, material resources, financial resources, and national economy resources and their X. Chen (*) College of Marine Sciences, Shanghai Ocean University, Lingang New city, Shanghai, China e-mail: [email protected] © China Agriculture Press 2021 X. Chen (ed.), Fisheries Resources Economics, https://doi.org/10.1007/978-981-33-4328-3_6

283

284

X. Chen

utilization, the measurement of production, distribution, exchange, and consumption, and the measurement of the total amounts, speeds, proportions, and benefits formed through economic operations within a certain scope and a certain time. At present, there are two types of internationally accepted national economic accounting systems. The first type is a material product system (MPS). It was first generated and developed in the Soviet Union, and China had used MPSs in the past. The other type is a system of national accounts (SNA), which was developed by many Western countries on the basis of having carried out revenue statistics for a long time; it was later revised by the United Nations into a new system for national accounts. The national economic accounting system that China currently implements is formed based on absorbing the advantages of the two major systems: MPS and SNA. In 1992, China’s national economic accounting system underwent new reforms by using gross domestic product (GDP) to replace gross national product (GNP) and using it as the main accounting index. The two major systems (SNA and MPS) have played substantial roles in an era in which resource and environmental issues have not yet affected people’s quality of life and threatened social and economic sustainable development. With the rapid development of the economy and the high-speed growth of the population, resource and environmental problems such as environmental pollution, ecological destruction, and resource reduction have become increasingly prominent. These realities have not only seriously weakened life and welfare but have also threatened human survival. The national economic accounting system currently in force, which uses the gross value of the national economy as the main index, has serious shortcomings as it places importance only on the economic output value and its growth rate while ignoring the resource base and environmental conditions. This is one of the important root causes that has caused people to simply pursue the output value and keep up with each other’s speeds, without regard for resource depletion and environmental degradation. The consequences may cause a strange phenomenon, that is, a country may deplete its resources and pollute its environment, but the measured output value of the national economy may increase steadily with the loss of these precious resources. GNP and net national product (NNP), which are the main indexes of the national economic accounting system currently in force, include the value of all goods and services produced by various sectors, take into account the depreciation of fixed assets, but do not take into account the decrease or increase in resources and changes in environmental quality and completely ignore the increasingly great environmental value (including tangible resource value and intangible ecological value). The shortcomings of this type of accounting system have generated an erroneous guiding effect on economic and social development, which has made economic development present a certain false appearance of illusory growth, and at the same time caused a hollowing-out phenomenon of resources in the continuously weakening resource base for economic development.

6 Theories and Methods of Fishery Resource Accounting

6.1.1.2

285

Proposal for Natural Resource Accounting

In light of the existing shortcomings of the national economic accounting system currently in force and the erroneous guiding and serious consequences it generated, especially since the mid-1980s, many countries and organizations and scholars have been actively researching and exploring ways for the reform of national economic accounting systems, striving to carry out resource and environmental accounting and incorporate it into the national economic accounting system. We believe that accounting should be carried out on resources based on the establishment of resource values and reasonable pricing methods and should be incorporated into the national economic accounting system. Only in this way can the actual level of economic development and the actual extent of resource depletion be revealed; only then can economic development be organically combined together with the effective utilization and protection of resources; only then can the appearance of resource shortages and the resource hollowing phenomenon be avoided in economic development; and only then can the sustainable use of resources be ensured. Everyone is aware that resources are the material basis on which humans depend for survival and development. The economic and social development of a country is closely related to the abundance of its resources and the level of exploitation, utilization, and protection. Resource reserves are an important component of national wealth. In Chap. 8, Section 1, of Agenda 21, which was passed at the United Nations Conference on Environment and Development, by “integrating environment and development in decision-making”, “establishing systems for integrated environmental and economic accounting,” and “expanding existing systems of national economic accounts in order to integrate environment and social dimensions in the accounting framework, including at least satellite systems of accounts for natural resources,” “systems of integrated environmental and economic accounting would be designed to play an integral part in the national development decision-making process.” Accounting for resources is an inevitable trend, and it is also necessary for sustainable development. It has the role of guidance, monitoring, and early warning for social and economic development and the sustainable use of resources. Therefore, resource accounting is an indispensable and important part of realizing sustainable development strategies. As an important marine natural resource, marine fishery resources have an output value of approximately 50% of China’s marine economy. However, in the national economic accounting system currently in force, no accounting has been carried out for fishery resources; therefore, (1) the uncompensated use of fishery resources regards fishery resources as having no value, and the value of and changes in fishery resources are not further reflected in the national economic accounting system; (2) no accounting has been carried out on the storage capacity, amount of change, and amount of use of fishery resources, and the relationship between the extent of the exhaustion of fishery resources and the economic development of fisheries cannot be determined; (3) there is a continuous increase in the output of marine fisheries, but the resource base is declining day by day. Therefore, against such a backdrop, to

286

X. Chen

ensure the sustainable use of fishery resources and the sustainable development of the fishery economy, it is necessary to attach importance and pay attention to accounting for fishery resources.

6.1.2

Research Progress on Natural Resource Accounting in China and Abroad

6.1.2.1

General Situation of Research Abroad on Natural Resource Accounting

Since the mid-1980s, governments or research institutions in more than 20 countries worldwide, such as the United States, Canada, France, the United Kingdom, Germany, Norway, and the Netherlands, have launched exploration and experimentation in research and implementation schemes for natural resource accounting or environmental accounting theories and methods. In June 1989, the US Congress passed a law regarding resource and environmental accounting, in which there include the provisions as follows: “Congress found that, because it does not recognize the depletion of natural resources, the analyses conducted on the economic conditions of many countries by the national economic accounting system currently in force are distorted.” The World Resources Institute of the United States is an organization that advocated earlier for the launch of research on natural resource accounting, and the research work has always been at the forefront of the world. From 1987 to 1988, they cooperated with experts from Norway and other countries to complete research on natural resource accounting in Norway and Indonesia and proposed a set of accounting methods and preliminary methods for the incorporation of natural resource accounting into the national economic accounts and GNP modifications. Since 1989, while continuing to cooperate with China, corresponding research schemes were also formulated in cooperation with Costa Rica to collect data and put forward new methods for the incorporation of natural resource accounting into the national economic accounting system. Norway is one of the countries that launched research on natural resource accounting early and systematically in Europe. Norway’s Ministry of the Environment established such accounting in 1972. After 1978, this work was transferred to Statistics Norway to undertake and implement operations, with a focus on the accounting and research of natural resources. In 1981, Norway published, for the first time, the data, reports, and periodicals of “natural resources accounting.” In the mid-1980s, Statistics Norway used physical indicators to compile the accounts of natural resource accounting for the first time, including energy, minerals, forests, fisheries, land use, and so on, and in 1987, the research report “Natural Resource Accounting: The Norwegian Experience,” was published. In the system of accounts for Norway’s natural resource accounting, two types of resources are determined: physical resources and environmental resources. Physical

6 Theories and Methods of Fishery Resource Accounting

287

resources can also be divided into mineral resources, biological resources, and fluid resources. Environmental resources are defined by their nonmarket functions; for example, water resources have the functions of carrying pollutants and purification. In practice, the physical resource accounts include petroleum, mineral resources, biological resources, forest resources, fish, and so on. In integrating the research results on resource accounting by developed countries, they have the following common characteristics: (1) equal attention on resources and the environment, and Norway’s practice of dividing resources into physical resources and environmental resources has attained general acceptance; (2) the accounting method generally involves the implementation of physical accounting, which is mostly at the exploratory stage in terms of progress; (3) viewed from value accounting, attention is often paid to the pricing of and accounting for nonrenewable resources, some pricing methods have been proposed for resources such as petroleum, natural gas, and so on, but no in-depth research and investigation have been conducted yet on renewable resources such as fishery resources and so on; and (4) the research of resource accounting by developed countries emphasizes sustainable development, for example, the effect of resource accounting on government decision-making and improvements in policies. For developing countries, those that have launched research in resource accounting are China, Mexico, Costa Rica, Indonesia, the Philippines, and Brazil, among others. The following are characteristics of their research work in resource accounting: (1) most work is aided by developed countries or international organizations and is launched as a typical case and cooperative research; (2) the research work is generally still in the methodological exploration stage; and (3) the work emphasizes and provides some resources and data. It is worth mentioning that Indonesia has completed a report on natural resource accounting in Indonesia in 1989 under the guidance of R. Repetto et al. of the World Resources Institute of the United States. It included resources such as forests, land, petroleum, and natural gas; calculated the reserves, increases, decreases, flows, and changes in resource stocks between 1979 and 1981; used the net price method to calculate the price of natural resources; and then carried out value accounting for resources; the results were used to modify the GNP or the net domestic product (NDP). In addition, many international organizations such as the United Nations Statistics Division, the United Nations Environment Programme (UNEP), the World Bank, the Organisation for Economic Co-operation and Development (OECD), the International Monetary Fund, the European Community, the Food and Agriculture Organization (FAO), and so on have been launching theoretical and pilot studies on resource accounting. For example, the United Nations and the World Bank completed the research report “The Environment and Economics.” This report analyzes in detail the status quo and existing problems in environmental and economic research, proposes the theories, principles, and methods of environmental and resource accounting, and establishes the work guidelines and steps for carrying out resource and environmental accounting.

288

6.1.2.2

X. Chen

Research Progress in the Launch of Resource Accounting by China

Research on resource accounting started comparatively late in China. A comprehensive study regarding natural resource accounting was carried out for the first time in 1998. In addition, under the leadership of the Development Research Center of the State Council, dozens of domestic departments and units were organized to carry out subject research on “Natural Resource Accounting and Its Incorporation into the National Economic Accounting System” in cooperation with the World Resources Institute of the United States. Extensive research has been carried out on the theories, principles, and methods of resource pricing; the theories, principles, and methods of resource depreciation; the theories, principles, and methods of resource accounting (including index systems); improvements in the framework for national economic accounting; schemes for incorporating resource accounting into the national economic accounting system; classification accounting for mineral resources, groundwater resources, surface water resources, forest resources, land resources, grassland resources, and so on. Furthermore, the framework for an accounting system regarding China’s natural resources was proposed. On the whole, the framework of this accounting system is divided into three levels: the first level is carrying out accounting for each type of natural resource in order to reflect the changes in each type of resource; the second level is carrying out integrated accounting for natural resources to reflect changes in the total amount of natural resources; and the third level is incorporating natural resource accounting into the national economic accounting system in order to comprehensively reflect the actual situation of changes in national wealth, the scale of capital formation, and gross and net national products. Although China’s study of resource accounting only began recently, it has given rise to wide interest and comparatively high evaluations internationally because the research work has Chinese characteristics. Experts and scholars led by Jinchang Li have successively published a series of research monographs relating to “resource accounting theory,” “resource value theory,” “resource industry theory,” and so on. In addition, accounting research work in terms of water resources, minerals, forests, and other resources is also being carried out in-depth.

6.1.2.3

Research Progress on Fishery Resource Accounting in China and Abroad

Due to the particularities of fishery resources, the current worldwide accounting for fishery resources is still in a discussion and grouping stage and has not been comprehensively and systematically launched. To implement the measures in the United Nations’ Agenda 21 related to the launch of natural resource accounting, including the physical and value methods, and in order to provide guarantees for the sustainable use of fishery resources, the United Nations Commission on Sustainable Development and FAO held a conference on the integrated environmental and

6 Theories and Methods of Fishery Resource Accounting

289

economic accounting for fishery resources on June 14–16, 1999, in New York. Its purpose was to discuss and draft the relevant standards and guidelines for System of Integrated Environmental and Economic Accounting for Fisheries (SEEAF) as well as to analyze the use and shortcomings of fishery resource accounting at present and to provide conditions for data collection and summary and institutional setups required for integrated environmental and economic accounting for fishery resources as well as the launch of targeted research in the future. At present, there are very few countries that engage in research on fishery resource accounting. Currently, except for a few countries, the proportion of the value of fisheries output to total GDP is usually very small, generally lower than 1–2%. It is exactly due to this reason that many countries usually do not list fishery accounting alone but, instead, integrate it with the accounting for big agriculture (including agriculture, forestry, and so on). However, in some countries such as Iceland, the Maldives, and Nepal, their fisheries occupy an important position in the national economy, and fishery accounting is usually detailed and officially announced. Iceland has already carried out research and trial work to integrate fishery resources into the national economic accounting system, and countries such as the Philippines, Chile, and Norway have also launched work in terms of fishery resource accounting and have gained some experience. However, the current accounting for fishery resources has primarily involved physical accounting.

6.2

Basic Principles of Fishery Resource Accounting

6.2.1

Concepts of Fishery Resource Accounting and its Content

6.2.1.1

Concepts of Fishery Resource Accounting

Fishery resource accounting is the statistics, verification, and measurement of the total amount of and structural changes in fishery resources within a certain time and space on the basis of its reasonable appraisal and in terms of material objects, value, and quality and the reflection of its work in balancing the situation and the input and output of benefits. The object of fishery resource accounting is to determine fishery resources within a certain scope of time and space. Fishery resources are natural goods with temporal and spatial dimensions. When changes have occurred in time and space, changes will also occur correspondingly in the types, quantity, quality, structure, and utilization status of fishery resources. Fishery resources have duality, with both physical resource characteristics as well as environmental resource characteristics. Physical resources refer to the resources that can provide a supply of physical products, and the use of physical resources will cause the resources to be temporarily or permanently depleted in quantity; environmental resources refer to resources that can provide certain services, and the use of

290

X. Chen

environmental resources is related to decreasing the quality of resources (performance degradation). Therefore, in addition to accounting in terms of quantity, fishery resource accounting also requires accounting in terms of quality. Physical accounting uses physical units to carry out measurement on the flow and stock of resources, while the value of resources is measured by using a unified monetary value. The bases of fishery resource accounting are the physical statistics and price estimation of fishery resources. Physical statistics are the most effective means of reflecting the quantity and quality of fishery resources and their utilization status. Price estimation makes the incorporation of fishery resources into the national economic accounting system possible.

6.2.1.2

Basic Content of Fishery Resource Accounting

The content of fishery resource accounting includes the following aspects. (1) Generally, fishery resource accounting is thought to include two parts—physical accounting and value accounting. However, in order to reflect the real changes more comprehensively in fishery resources, accounting for fishery resources should also include accounting in terms of the quality of the resources. (2) According to the object of accounting, fishery resource accounting is composed of two parts—total accounting and individual accounting, that is, classification accounting and integrated accounting for fishery resources. (3) According to accounting time, fishery resource accounting involves accounting for resource stocks not only with an eye on the static but also with an eye on the dynamic, especially regarding the flow of resources. Stock accounting helps assess the relationship between the total resource amount and its economic aggregate at a certain moment, and it also helps when comparing resource stocks between different regions, while flow accounting helps one understand the basic changes in fishery resources that have occurred in a country or a region with the economic growth of fisheries, which helps in the analysis of the dynamic relationship between resource flow and economic flow. In a broad sense, fishery resource accounting should also include the process by which fishery resource accounting is incorporated into national economic accounting, that is, the process by which fishery resource accounting is organically combined with national economic accounting. The ultimate purpose of resource accounting is the incorporation of fishery resource accounting into national economic accounting to evaluate the status of the sustainable use of fishery resources.

6 Theories and Methods of Fishery Resource Accounting

6.2.2

Characteristics and Principles of Fishery Resource Accounting

6.2.2.1

Characteristics of Fishery Resource Accounting

291

Fishery resource accounting is the basis for evaluating the sustainability of fishery resource utilization. Compared with other natural resource accounting, fishery resource accounting has a wide territorial scope, numerous accounting subjects, and unique accounting subjects. These characteristics have increased the degree of difficulty in fishery resources accounting. 1. Regional differences: Fishery resources exhibit obvious regional differences and can be roughly divided into several regional types such as coastal, offshore, open sea, deep sea, and so on. They can also be divided into frigid-zone, subtropicalzone, temperate-zone, and tropical fishes. The species, quantity, quality, and combination features of fishery resources in different regions all have great differences. 2. Wide territorial scope: Fishery resources are widely distributed in all oceans of the world. At present, the main exploited seas are continental shelf fishing grounds, which approximately account for more than 90% of the world’s total marine catch. For some oceanic species, the distribution range is extremely wide. For example, Ommastrephes bartrami, an important fishing object of Chinese squid jigging vessels at present, is distributed throughout the seas of the entire Northern Pacific Ocean from the coast of Japan to the coast of Canada. It is fished by squid jigging vessels of Japan, mainland China, Taiwan Province of China, South Korea, Canada, the United States, and other countries and regions, which caused great difficulties in reporting statistics on catches and fishing efforts, as well as resource accounting. In addition, there are some livelihood-type smallscale coastal fisheries that usually operate along the coast and are directly used for household consumption. The wide geographic distribution makes this part of the catch impossible to count, which therefore has also brought challenges to resource accounting. 3. Numerous accounting subjects: China’s marine biological species are abundant and diverse, and it is one of 12 countries in the world with particularly rich biodiversity. There are 20,278 species of marine life that have already been recorded. Among them, there are more than 3000 species of fish and more than 20 species of mainly dominant fishery resources; more than 1200 species of shrimps and crabs; 101 species of cephalopods; more than 200 species of sea cucumbers, sea urchins, and so on; more than 800 species of shellfish, oysters, mussels, and so on; and 790 species of seaweeds. The numerous accounting subjects have brought challenges to initiating work on fishery resource accounting. 4. Fuzzy geographic boundaries: Fishery resources are fluid, and the geographic boundaries are fuzzy and unclear. After the implementation of the 200-nauticalmile exclusive economic zone system, most fishery resources are under the

292

X. Chen

jurisdiction of coastal countries, which provides conditions for fishery resource accounting to a certain extent. However, it is impossible to carry out accounting for fishery resources by relying on a single country for some transboundary and highly migratory fishes and high sea fishes, such as tuna and so on, and it is necessary to carry out international cooperation between countries or regions. In addition, because the fleets of different countries have different cost structures and the prices of fish are also inconsistent, for those highly migratory, transboundary, and high sea fishes, the physical accounting for fishery resources is carried out according to country and species when it is possible. There are certain difficulties in their value accounting, and there is no comparability in the value of fishery resources between various countries. 5. Difficulties in determining asset boundaries: According to the relevant definition of the United Nations FAO on aquaculture, the criteria for determining the boundaries of productive and nonproductive fishery resources are as follows: farmed fishes are productive assets, and all wild fishes and breeding and released fishes can be nonproductive assets. However, some fishes carry out periodic migration between the high seas and seas under the jurisdiction of coastal countries or between countries, which brings challenges to defining fishery resource assets.

6.2.2.2

Principles of Fishery Resource Accounting

1. Principle based on classification accounting. Different types of fishery resources have different quantitative, qualitative, and utilization characteristics. Mixing various types of fishery resources fundamentally cannot reflect changes in the quantity, quality, and other aspects of various types of fishery resources. Different types of fishery resources are noncomparable in terms of quantity and quality; in addition, different types of fishery resources have different utilization processes; therefore, their accounting processes are also not the same. 2. Principle of combining classification accounting with integrated accounting. The physical accounting for fishery resources can only be carried out by classification, and value accounting can be done by both classification accounting and integrated accounting. Fishery resource accounting should be based on physical classification accounting and reflect the changes in various types of resources; value accounting is used to grasp the overall situation and reflect the overall changes in the fishery resource base. 3. Principle based on the constant price of resources while considering the instant market price. The values of fishery resources measured at constant price have comparability between various years and thus can truly reflect the changing situation in a fishery resource base, whereas the advantage of the instant market price is that it can reflect the instant supply and demand relationship of fishery resources in a timely manner. The values of fishery resources measured at the instant price can be compared with the total output value of fisheries measured at

6 Theories and Methods of Fishery Resource Accounting

293

the instant price to reflect the level of fishery resource utilization efficiency of economic growth. 4. Considering both qualitative features and quantitative features. For regenerable fishery resources, the regeneration capacity and the recovery capacity of the resources depend on both the quantitative features of the resources and the qualitative features of the resources. The sustainable use of fishery resources is established based on improving the quality of fishery resources to make up for the decrease in quantity. In this sense, qualitative accounting should be given greater attention in fishery resource accounting because the significance of qualitative accounting outweighs quantitative accounting. To comprehensively and truly reflect changes in the fishery resource base, both qualitative and quantitative features should be considered in accounting. 5. Principle of hierarchical accounting. Fishery resource accounting can be carried out both within the scope of a country and in a small scope in each area in order to reflect the changes in the fishery resource base at different spatial scales.

6.2.3

Basic Procedures and Methods of Fishery Resource Accounting

6.2.3.1

Basic Procedures of Fishery Resource Accounting

The general procedures of fishery resource accounting specifically include the following aspects: 1. Define the object of fishery resource accounting; that is, strictly define all fishery resources in a certain sea. It is proposed that the scope of natural resource accounting should be limited to the portion of natural resources that can be used economically. When accounting for fishery resources, according to the current statistics for and classification of China’s fishery resources, they can be preliminarily divided into fishes, shellfish, shrimps, crabs, algae, and so on. The fishes are mainly hairtail, large yellow croaker, small yellow croaker, Japanese Spanish mackerel, pomfret, mackerel, anchovy, and so on; the shrimps are mainly Chinese white shrimp, Trachypenaeus curvirostris, and so on; the shellfish are mussels, scallops, and so on; and the algae are mainly laver, kelp, and so on. 2. Carry out physical statistics for fishery resources. The statistical contents include the quantity, species, and utilization status of fishery resources. This process plays a decisive role in fishery resource accounting and is related to whether fishery resource accounting can be carried out smoothly and whether the accounting results are credible. In most cases, after long-term data accumulation and scientific investigation, the statistics for fishery resources have a considerable basis, and the data can be directly quoted, but attention must be paid to the scientific nature and authenticity of the data. 3. Draw the flow direction and flow chart for fishery resource utilization. The diagram intuitively and visually reflects the direction and process of the changes,

294

4.

5.

6.

7.

8.

X. Chen

inflows, and outflows of fishery resources. Its purpose is to clarify the reasons, quantity, and utilization structure of the changes in fishery resources and to establish accounts for fishery resource accounting. Appraise fishery resources. This is key to fishery resource accounting and a challenge of research and is related to the success or failure of value accounting for fishery resources. Value accounting for fishery resources must be established based on a reasonable appraisal of fishery resources. Carry out classification accounting for fishery resources. Classification accounting includes the calculation and flow direction analysis of the physical increment and decrement of each category, and it also includes the calculation and flow analysis of the value increment and decrement of each category. Classification accounting is the basis of integrated accounting. Carry out integrated accounting for fishery resources. That is, carrying out comparisons and equilibrium analysis on the total physical and total value of fishery resources for use in reflecting the overall change in the total amount of fishery resources; it can also reflect the comprehensive efficiency of fishery resource utilization. By comparing these data with the value of fishery resources in the previous period, the increment and decrement and the reasons are analyzed. Carry out quality index accounting for fishery resources. In addition, quality index accounting is used to correct the results of quantitative accounting and value accounting. Incorporate the integrated and value accounting results for fishery resources into the cost-benefit analysis for the economic growth of fisheries.

In the aforementioned eight steps, the first, second, and third steps are quantitative accounting for fishery resources; resource appraisal is the basis of value accounting for resources and is an indispensable part of value accounting. Therefore, natural resource accounting includes four processes (quantitative accounting, qualitative accounting, value accounting, and the incorporation of resource accounting results into economic analysis), among which, value accounting is the core, quantitative accounting is the basis of value accounting, and quality index accounting is used to correct quantitative accounting and value accounting.

6.2.3.2

Basic Methods of Fishery Resource Accounting

Accounting Chart An accounting chart is an important tool for fishery resource accounting. There are many forms of accounting charts. Among them, the simple form and the matrix form are the two types of charts with higher frequency of use. Table 6.1 is a simple accounting chart that includes four items—the accounting subject, the stock of the accounting object at the beginning of the period, the increment and decrement, and the stock at the end of the period.

6 Theories and Methods of Fishery Resource Accounting

295

Table 6.1 Basic accounting chart Object setting Stock at the beginning of the period Subject grouping

Net increment in the current period

Stock at the end of the period

State 1 State 2 State 3 State n

Table 6.2 Basic table form of an accounting chart Beginning of the accounting period End of the accounting period Outside the region (outflow) Within the region: Status at the end of the period Stock at the beginning of the period

Outside the region (inflow) A

Within the region: State at the beginning of the period B0

Stock at the end of the period

C

X

T

G0

A matrix table is designed according to the principle of input and output (see Table 6.2). Inflows (inputs) are represented by columns and outflows (outputs) are represented by rows. The total in the last row is the stock at the beginning of the period, and the total in the last column is the stock at the end of the period. A matrix accounting chart combines the resource stock, the flow indicators, and the total amount of inflows (increases) and outflows (decreases) and unifies static description and dynamic description. In the chart, a is a constant; C is a column vector that is the total amount of inflow “within the region” in the accounting period; B0 is a row vector that is the total amount of outflow “within the region” in the accounting period; X is a square matrix that is the average total amount “within the region” during the accounting period and is a flow matrix; G0 is a row vector that is the stock in all states at the beginning of the period; and T is a column vector that is the stock in all states at the end of the period.

Accounts Approach Accounts are another important tool for fishery resource accounting. It involves the systematic description of the development process of fishery resources through a series of total indicators and related subjects to carry out classification and

296

X. Chen

Table 6.3 Basic form of accounts for accounting Inflow Stock at the beginning of the period Amount of decrease in the period Total amount of inflows and stock

Outflow Amount of increase in the period Stock at the end of the period Total amount of outflows and stock

calculation of the total amounts, thereby revealing the relations between all total amounts. Table 6.3 shows the basic form of accounts for fishery resource accounting. The formula for the equilibrium relations in the chart is: Total amount of inflows and stock ¼ Total amount of outflows and stock

Index System for Resource Accounting Total accounting for fishery resources cannot objectively and comprehensively evaluate the resource abundance of a region, nor can it carry out comparisons on the level of development of environmental resources. Therefore, it is necessary to connect resources together with the population, the economy, and so on to construct an index system for fishery resource accounting to facilitate macro analysis and comparison. The purpose of fishery resource accounting is to connect the depletion or possession of natural resources together with economic growth and to include resource consumption in economic costs. The index system for fishery resource accounting is mainly composed of relative indicators and average indicators, such as the coverage rate of the area for the operating fishing grounds, per capita fishery resource reserves, coverage rate of the area for the protected areas (prohibited fishing areas and so on), coverage rate of the area for mariculture, biodiversity, cost consumed per unit catch, and so on.

6.3

Physical Accounting for Marine Fishery Resources

6.3.1

Physical Accounting for Fishery Resources

6.3.1.1

The Concept of Physical Accounting

Physical accounting refers to a way of accounting that reveals the environmental, resource stock, and flow status through data (information) expressed in specific physical units. The largest advantage of this type of accounting is that it is able to fully utilize the various existing (especially in terms of statistics) information in the field of environmental resources and depict the changing trends related to the status

6 Theories and Methods of Fishery Resource Accounting

297

and flow in the environmental resource stock (including environmental quality changes, resource depletion or status).

6.3.1.2

Simple Accounting Chart for Fishery Resources

Fishery resource stock changes with time; therefore, it is necessary to account for the stock and flow of natural resources. Fishery resources increase due to natural growth, but the stock is also reduced due to death, exploitation, and utilization. According to a basic accounting chart (Table 6.1), combined with fishery resource characteristics, an accounting chart for fishery resources can be designed (see Table 6.4). In Table 6.4, the subject fields are the classification of fishery resources, and the object fields are the stock and flow of various species of fishery resources. In the chart, the “stock at the beginning of the period” can be the total amount of fishery resources at the beginning of the accounting period or at a certain time point in history; and the “stock at the end of the period” can be the total amount of stock at the end of the accounting period or at the end of a reporting period. The changing situation in the total amount of fishery resources can be observed by comparing the stock at the beginning of the period and at the end of the period. The amount of increase in the current period includes newly discovered amounts in the period and the amount of increase in the reappraisal in the period. The amount of decrease in the period is the sum of the amount already extracted and used in the period, the amount of decrease in the reappraisal, and the amount of loss in the period. The basic formula for stock and flow accounting for fishery resources is: Sðt Þ ¼ Sðt  1Þ þ H ðt Þ  Rðt Þ In the formula, S(t) is the stock at the end of period t; S(t  1) is the stock at the end of the previous period or at the beginning of the period; H(t) is the amount of increase in the current period; and R(t) is the amount of decrease in the current period.

6.3.1.3

Accounting Chart for the Sustainable Use of Fishery Resources

Accounting for the sustainable use of fishery resources is to investigate the amount of resource used in the reporting period; furthermore, the exploitation of and reduction in resources should be investigated. According to this requirement and in accordance with the matrix form of the resource accounting chart, a matrix table for the sustainable use of resources can be designed (Table 6.5). Table 6.5 is an accounting chart that reflects the stock, flow, and utilization of resources. The indicators in the table are arranged according to the resources that can be utilized and the resources that have already been utilized, such as the area of the operating fishing grounds and the area of the exploited and utilized fishing grounds, the area of sea that can be cultivated and the area of sea that has been cultivated already, and so

X. Chen

298 Table 6.4 Accounting chart for fishery resources

Scope of fishery resource distribution

Marine fishery resource species

Amount of resource in fishery resources

Area of the sea Area of the fishing grounds Area of the exploited fishing grounds Area of the sea that can be cultivated Area of the sea that is already cultivated Biological species Plants Animals Fishes Shellfish Shrimps Crabs Cephalopods Economic fishes Economic algae Economic shellfish Economic shrimps and crabs Total amount of fishery resources Amount fish resources Amount of shellfish resources

Unit of measurement Hectare

Stock at the beginning of the period

Increment and decrement in the current period Amount Amount of of increase decrease

Stock at the end of the period

Hectare

Hectare

Hectare

Hectare

Species Species Species Species Species Species Species Species Species Species Species

10,000 tons

10,000 tons 10,000 tons

(continued)

6 Theories and Methods of Fishery Resource Accounting

299

Table 6.4 (continued)

Amount of shrimp and crab resources

Unit of measurement 10,000 tons

Stock at the beginning of the period

Increment and decrement in the current period Amount Amount of of increase decrease

Stock at the end of the period

on. The former reflects the fishery resources that are available for human utilization, and the latter reflects the fishery resources that have been utilized by humans already. In the matrix table, these two indicators are listed side by side, and the situation in the new utilization of fishery resources by society in the accounting period can be investigated. In Table 6.5, the vector T ¼ (t1, t2, . . ., tn) is the total stock of fishery resources at the beginning of the period. G ¼ (g1, g2, . . ., gn)’ is the total stock of fishery resources at the end of the period. The vector A ¼ (a1, a2, . . ., an) represents the decrease in the amount of fishery resources in the accounting period due to natural factors (such as natural death, sudden changes in the conditions of the sea, and so on); this portion of the resources exists at the beginning of the period and disappears in the accounting period, and it is included in the stock at the beginning of the period but not included in the stock at the end of the period. The vector B ¼ (b1, b2, . . ., bn) represents the decrease in the amount of fishery resources in the accounting period due to human causes (such as fishing and so on); this portion of the resources exists at the beginning of the period and disappears in the accounting period, and it is included in the stock at the beginning of the period but not included in the stock at the end of the period. The vector C ¼ (c1, c2, . . ., cn) represents the natural increase in the amount of resource in the accounting period (such as the amount of natural growth). This portion of the resources does not exist at the beginning of the period. Therefore, the natural increase in the accounting period is included in the stock at the end of the period but not included in the stock at the beginning of the period. The vector D ¼ (d1, d2, . . ., dn)’ represents the amount of fishery resources increased by the artificial measures (such as artificial propagation) in the accounting period. This portion of the resources does not exist at the beginning of the period, but it increases in the accounting period because of human activities; therefore, it is included in the stock at the end of the period but not included in the stock at the beginning of the period. In the square matrix, the diagonal element M ¼ (m11, m22, . . ., mnn) represents the average amount of fishery resources during the accounting period and is a flow indicator. It is the overall fishery resources being studied at the beginning of the period and at the end of the period. Mij represents the change in fishery resources; for example, m21 is the amount of fishery resources that can be utilized, which is converted into the amount of fishery resources that have been

Natural Artificial Decrease in resources 1. Area of the fishing grounds 2. Area of the exploited fishing grounds 3. Area of seawater that can be cultivated 4. Area of seawater that has been cultivated already 5. Amount of resource that can be utilized 6. Amount of resource that has been utilized already □ Resource stock at the beginning of the period

Increase in resources Natural Artificial – – – – d1 c1 c2 d2 c3 d3 c4 d4 c5 d5 c6 d6 c7 d7 ┇ ┇ cn dn t1

t2

t3

t4

t5

t6

mnn t7 . . . tn

Utilization of fishery resources 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. . . . . . a1 a2 a3 a4 a5 a6 a7 . . . an b1 b2 b3 b4 b5 b6 b7 . . . bn m11 m22 m33 m44

Table 6.5 Accounting matrix table for the sustainable use of fishery resources

Resource stock at the end of the period g1 g2 g3 g4 g5 g6 g7 ┇ gn

300 X. Chen

6 Theories and Methods of Fishery Resource Accounting

301

exploited and utilized during the accounting period, reflecting the situation in human utilization of fishery resources. The above matrix table includes the following formulas for equilibrium relations: Amount of resource lost + Resource flow during the accounting period ¼ Resource stock at the beginning of the period;that is, A + B + M ¼ T. Amount of resource inflow + Resource flow during the accounting period ¼ Resource stock at the end of the period;that is, C + D + M ¼ G. It can be seen that the use of this matrix table can comprehensively account for the total amount, increasing and decreasing changes, and the utilization situation of fishery resources at the beginning of the period, at the end of the period, and throughout the entire accounting period being studied and unify the dynamic description and static description.

6.3.2

Qualitative Accounting for Fishery Resources

The fishery resource base includes two aspects—quantity and quality. The amount in quantity and the pros and cons in quality are the two major features of the fishery resource base. To correctly reflect the changes in the fishery resource base, one not only has to pay attention to increases and decreases in the quantity of the resources but should also pay attention to the changes in qualitative traits. The goal of the sustainable use of fishery resources is no decrease in quantity while maintaining quality. Therefore, the physical accounting of fishery resources should include not only quantitative accounting but also qualitative accounting. The quantitative accounting of fishery resources and value accounting based on this are the main parts of fishery resource accounting, but qualitative accounting must be utilized to carry out corrections on quantitative accounting and value accounting to facilitate a true reflection of the changes in the entire fishery resource base. Because the different qualitative traits of similar resources are noncomparable, to comprehensively understand the overall situation of the qualitative changes in a certain type of fishery resource, all qualitative traits of this resource type need to be integrated for consideration; therefore, it is necessary to design a quality index with a unified dimension. To this end, a method for estimating quality index accounting for fishery resources is proposed, specifically including the following steps: confirmation and selection of the quality factors for fishery resources; calculation of the index values for the quality factors; determination of index factor weights, that is, the weighting of index values for the quality factors; calculation of the quality index for different time periods; and correction of quantitative accounting and qualitative accounting results by the quality index. The quality factors of fishery resources are mainly the average body length of the catch, the average age of the catch, the body length (age) at first capture, the body length or age at first sexual maturity, the fecundity of the fish, and so on. These

302

X. Chen

indicators reflect the changes in the population structure of fishery resources. Based on the aforementioned quality factors, a quality index accounting chart for fishery resources can be designed (see Table 6.6).

6.4

Value Accounting for Fishery Resources

6.4.1

Theories on the Value of Natural Resources

6.4.1.1

Traditional View on Natural Resource Value

A large number of facts have proven that the principles of simple economic growth we have pursued and sought in the past are unilateral. Economic growth is unable to increase people’s wealth and social welfare under any circumstance. In certain situations, it will reduce wealth and welfare. At present, people have increasingly recognized that in a world where the ecological environment has suffered severe destruction, it is not possible to have welfare and wealth. In this chapter, the author cites the relationship between fishery resources and fishery production enumerated by O. Giarini to explain. In the initial stage of the exploitation and utilization of fishery resources, as people invest in better fishing tools and more operating fishing vessels, the production of fisheries also increases (although the growth is at a slow rate due to the law of diminishing returns). However, at a critical point, despite the continued increase in fishing investment, the total volume of fish caught begins to decrease. If additional investment is continued, the volume of fishing will not only be unable to grow but will decrease sharply instead. Furthermore, as less fish are caught, people have to use “advanced” technology and more investment to maintain a high level of production for as long as possible. However, the outcome is opposite: people want to produce more to increase wealth but cause a scarcity of resources instead, making fish products turn into rare goods (such as resources like the large yellow croakers off the shores of China). Analysis from an economics perspective reveals that the real reason for this loss outweighing gain phenomenon is the original fish have never been counted as an asset or as having economic value, and the decrease in or even destruction of fish resources has never been calculated as an economic cost. When fish resources are abundant or are not in a state of decrease, the use of economic means to carry out production and the use of all forms of investment are not a problem. However, any fishery resource, even if it is renewable, is vulnerable to scarcity and is not unlimited. If we establish ecological production and economic production, economic value added and ecological breeding, and economic growth rate on the rate of resource regeneration, the “tragedy” mentioned above can be avoided. Thus far, the value category, as the lever of social production activities, has only appeared in the field of commodities. It is often thought that only commodities have value. This kind of traditional, unilateral value concept has always dominated our thoughts and guided our actions. The traditional view on natural resource value

Year 1990 1991 ...

Body length or age at first capture Index value Weight

Quality factors

Body length or age at first sexual maturity Index value Weight Fecundity of the fish Index value Weight

Table 6.6 Quality index accounting chart for fishery resources

Average age of the catch Index value Weight

Average body length of the catch Index value Weight

Total sum of indexes

Total quality index of fishery resources

6 Theories and Methods of Fishery Resource Accounting 303

304

X. Chen

holds that natural resources have no price. It is exactly this concept, i.e., that resources have no value, and its manifestation in theory and policy that have led to the uncompensated possession of natural resources, predatory exploitation, and wasteful use, which have resulted in the “tragedy” of resource destruction, ecological destruction, and environmental deterioration and have become restrictive factors for the sustained and coordinated development of the economy and society. In short, the traditional view on natural resource value has serious disadvantages.

6.4.1.2

Internal and External Bases for the Price of Natural Resources

Internal Basis for the Price of Natural Resources The argument that natural resources have prices, aside from not contradicting Marx’s classical theory of value, is also in line with a thesis Marx put forward: “non-labor products and things with no value can have ‘imaginary’ prices.” However, we believe that the most fundamental basis for natural resources having prices is that natural resources have essential functions and attributes for forming economic resources. So-called economic resources refer to natural resources that have become the materials and conditions (social wealth) that have use value for people in human society through investment and transformation by human labor. Marx once said that Land is both the original warehouse of man’s food and the original warehouse of his means of labor, for example, the stone blocks used by people for hurling, grinding, pressing, and cutting are supplied to people by the land. He also said that Land itself is this kind of general means of labor because it provides a foothold for the laborer and provides a place of activity for his labor process. From Marx’s discussion about land, we can find that land, as a general natural resource, exists naturally first of all, is a gift from God and is a product of nature; second, it satisfies human needs in ready-made forms and naturally possesses the attributes and functions that provide production and living resources as well as places of production and living activities to humans. In other words, all natural resources, such as “land,” have use value and material utility for humans and human society. Therefore, whether it is fertile soil and a body of water that is able to produce fish abundantly or a waterfall or coal that is able to provide motive power, as well as a river that can enable shipping, the reason natural resources are able to become sources for the means of human living and means of production is that each resource has its own special functional use value and material utility attribute. The input and assistance of human labor make the use value and material utility that natural resources have been more aggregated, more prominent, and more perfect by processing and transforming them only under the premise of obeying the laws of nature and ecology. Apart from such attributes of natural resources and natural conditions—the functions of use value and material utility contained therein— human labor cannot create anything. Therefore, this attribute of natural resources is the primary basis for giving prices to natural resources.

6 Theories and Methods of Fishery Resource Accounting

305

External Basis for the Price of Natural Resources Natural resources have the attributes of use value and material utility, which constitute the internal basis of natural resources. However, not all natural resources with use value and material utility have to be given a price. There is no practical significance in giving prices to those natural resources that can be sustainably used by humans, such as solar energy, thermal energy, the atmosphere, and so on, because they are still inexhaustible and undepletable energy and materials to humans now. For renewable resources (such as fishery resources), nonrenewable nondepletable resources (such as land), sustainable and depletable resources (such as water resources), and nonrenewable depletable resources (such as petroleum and mineral resources, e.g., coal), in addition to the use value and material utility that they have, they also have an extremely important characteristic, that is, their scarcity or finiteness. The scarcity or finiteness of these natural resources is mainly manifested in the following three aspects: the first is the reduction, exhaustion, and depletion of certain natural resources by human activities; the second is the dilution, degradation, and qualitative changes in natural resources and natural conditions; and the third is the annihilation or destruction of the ecological structure and ecological equilibrium of natural resources. In summary, the external basis of natural resource value is not only in the quantitative finiteness and scarcity of natural resources or in the lack of a quantitative reduction but a reduction and deterioration in quality; there is also deeper content; that is, each kind of natural resource, regardless of its quantitative or its qualitative changes, will affect, influence, and even destroy the entire ecosystem. Therefore, to a certain extent, price determination for natural resources must include all aspects of its internal and external bases. The theoretical formulas and measurement methods for the price of natural resources will also be gradually improved as people deepen research on their “internal basis” and “external basis,” especially the “external basis.”

6.4.1.3

Composition and Classification of Natural Resource Value

The economic value of natural resources comes from the utility of scarce natural resources. To measure the economic value of natural resources, it must inevitably involve the classification of the economic value of natural resources. Based on the existing composition and classification of the economic value of natural resources, a value classification system more suitable for natural resource accounting purposes is proposed.

The Pearce and OECD Classification System In recent years, the UNEP, the OECD, and UK economist Pearce have more systematically studied the issue of the economic value of natural resources and its

306

X. Chen

Total economic value Use value

Nonuse value

Direct use value

Indirect use value

Selection value

Products that can be directly consumed

Functional benefits

Direct or indirect use value in the future

Food, material objects, entertainment, health

Ecological functions, flood control, storm protection

Biodiversity, habitat protection

Genetic value

Existence value

Value of use value or Recognized value nonuse value kept for that continues to exist future generations such as moralitybased belief

Habitats, irreversible changes

Habitats, endangered species

Fig. 6.1 Classification for the economic value of natural resources (Pearce and Turner 1990)

classification system. Among them, Pearce’s natural resource value classification system has had the greatest influence. He divided the value of natural resources into use value and nonuse value. The former includes direct use value, indirect use value, and selection value, and the latter includes genetic value and existence value. The OECD basically follows Pearce’s classification method, but in the block diagram of its classification system, selection value, genetic value, and existence value are consciously placed in a box, which also means that selection value is between use value and nonuse value. Figure 6.1 shows the classification system for the economic value of natural resources determined by Pearce and the OECD. The natural resource value and classification system determined by Pearce and the OECD has overcome the long-standing shortcoming of economic value theory and ecology being detached from one another. Starting from the overall functional utility that natural resources and the environment have for humans in use and nonuse values and so on, a form of expression for the natural resource value and its composition and corresponding value assessment method are put forward and concretely demonstrated. In this value and classification system, the subject (beneficiary) of natural resource value has expanded from contemporary humans to the entire human race from the past to the future, embodying the principles of “fairness” and “sustainability” in the theory of sustainable development. Therefore, Pearce et al. proposed that the discovery of existence value was one of their most important achievements.

6 Theories and Methods of Fishery Resource Accounting

307

A Natural Resource Value Classification System Suitable for Resource Accounting Pearce and the OECD theoretically analyzed natural resource value and its composition. To integrate with the national economic accounting system currently in force, a natural resource value and classification system more suitable for resource accounting is proposed on the basis of the concepts on natural resource economic value from Pearce and the OECD. The key to this classification system is to divide the economic value of natural resources into market value and nonmarket value, wherein the market value of natural resources can be directly embodied in the existing national economic accounting system; however, the nonmarket value is an issue of natural resource accounting that needs major research. The key to the aforementioned classification is to divide direct use value into two parts—the market value that is directly manifested in the market and the nonmarket value that is not or cannot be directly embodied in the market. Moreover, indirect use value and nonuse value (including selection value, genetic value, and existence value) generally do not have market manifestations and are all drawn into the nonmarket value category. The economic value of natural resources contains various value components that have rich conceptual connotations. A concrete review is provided below.

Market Value of Natural Resources The market value of natural resources refers to the value of natural resource utility that can be reflected or partially reflected directly in the market. It includes productive direct use values and some consumptive direct use values that can be traded on the market. Productive direct use value refers to the commodity value of some natural resource products that have undergone market transactions, such as petroleum, wood, grains, aquatic products, and so on. These products have an important effect on the national economy, and their market value can also be directly reflected in the national economic accounting system. For many developing countries, the contribution rate from this part of the value of natural resources to the development of the national economy is extremely large. The consumptive use value of transactions in the market refers to the value embodied by some natural resources and their products, such as fuel wood and wild fruits, when they are not directly consumed but are used for market transactions.

Nonmarket Value of Natural Resources The nonmarket value of natural resources refers to the economic value of some natural resources that do not have market manifestations, including nonmarket consumptive direct use value, indirect use value, selection value, genetic value, and existence value.

308

X. Chen

Nonmarket Consumptive Direct Use Value Nonmarket consumptive direct use value refers to some natural resources and their products that are directly consumed by residents without going through the market. It has two different forms: direct consumption of material objects and direct consumption of nonmaterial objects. Material objects that are directly consumed, such as fuel wood, game meat, and so on, are directly consumed by residents without being used in market transactions. For some livelihood fisheries along the coast, fish caught by fishers are directly used for household consumption. Nonmaterial objects that are directly consumed, such as ecotourism, marine theme parks, and leisure fisheries, are provided to humans by recreational landscapes, biodiversity, and so on, or are research objects provided to scientists for carrying out research in terms of biology, genetics, ecology, geography, and so on, and the utility is provided by the information function of natural resources. The value in the direct consumption of material objects that are natural resources can rarely be reflected in the national economic accounting system, such as fish directly used for consumption, and the economic value of recreational landscapes and biodiversity has only been recognized by people recently, such as leisure and sightseeing fisheries. In the United States, the social and economic revenues of leisure fisheries in 1997 reached 38.7 billion USD, which increased tax revenue for the federal government by 3.1 billion USD, provided for an employed population of 80 million, and had a total of more than 15 million upstream angling vessels. Economists are making efforts to study the use of alternative market methods and willingness assessment methods to quantify this part of the economic value.

Indirect Use Value Many uses of resources cannot be for direct use in production or consumption, nor can they be directly exchanged in the market. Their values can only be manifested indirectly. Generally, this indirect use value refers to the ecological function and regulating function of the natural resource function type, such as water source conservation and soil and water conservation, atmosphere regulation, and other forest resource functions. Fishery resources have functions such as maintaining marine ecological equilibrium, biodiversity, and so on. Although this part cannot be directly used for production or consumption, it is very important to human survival and development and has important life system support functions. There is also a direct dependency relationship between the direct use value and indirect use value of natural resources. Direct value is often derived from indirect value. For example, the growth of fish must be supported by the services provided by the environment where they are located. To humans, these functions have great use value, but it cannot be realized in the market; therefore, it is very difficult to measure their value. However, these values exist and can be measured by certain methods. For example, for the functions of water source conservation and soil and water conservation, it can be assumed that in a situation where this forest is not present, the investment needed to use engineering

6 Theories and Methods of Fishery Resource Accounting

309

methods to achieve equivalent efficacy of revenue or to build a forest is the estimated value.

Selection Value Selection value refers to the amount that people are willing to pay to preserve or protect a certain natural resource to facilitate its use for various purposes in the future. Later, this concept developed along two paths: one connected this concept with risk insurance due to the uncertainty of the future use of the protected resource; the other connected this concept with the irreversibility and intergenerational conflicts caused by the abolishment of this resource or altering it for other uses. Regardless, selection value is essentially a type of use value; the difference is that it measures the future direct or indirect use value. Therefore, one characteristic of selection value is that it reflects that a certain resource is not being used now but may be used in the future. It is similar to the insurance money paid to guarantee resource and service supply.

Genetic Value Genetic value refers to the value retained for the use value and nonuse value of natural resources for future generations, and it is the cost voluntarily paid by the current generation to retain certain resources for future generations. It reflects the wish that many people in the current generation may have for their children or descendants to be able to obtain benefits from the existence of certain resources (such as tropical forests or rare species), such as sightseeing, and it is the protection cost thus voluntarily paid in the knowledge that they can benefit from the existence of certain resources in the future. For example, individuals voluntarily donate money to ensure that future generations know that there are whales in the ocean and pandas in China. Genetic value reflects the idea of intergenerational equality in sustainable development. It takes into account the right to use natural resources possessed by the generations to come. Because genetic value involves utilization by people in future generations, there are people who believe that genetic value should belong to selection value (for example, the classification system of McNeely et al. incorporates genetic value into selection value and wholly classifies it as being reserved for useful selection purposes in the future). However, there are also people who think that genetic value represents ensuring the continued existence of certain resources but does not involve whether there is future utilization, and therefore, genetic value is a category of existence value (for example, the United Nations Planning Bureau of the UNEP groups genetic value and existence value into one category). Currently, genetic value is most often listed separately, juxtaposed with selection value and existence value.

310

X. Chen

Existence Value Existence value is the cost that people are willing to pay for the existence of a certain environmental resource. Existence value is the economic value that has nothing to do with people’s utilization of resources (including current use and the choice to use in the future). This is not uncommon in real life. Many people are willing to pay to maintain the existence of a certain resource and environment. For example, many people donate to the protection of wild animals and plants. They are willing to pay to protect these living things, but it is not that they want to obtain use value, such as tourism and sightseeing, or other future consumption, it is only for the continued existence of these resources. In some Western countries, through the willingness assessment method, assessment and case studies are carried out on the existence value of some animal species and natural comfort. The results show that the existence value of resources is an important component of the total value of the resource economy. For example, the Grand Canyon in Colorado, a famous natural resource landscape area in the United States, has an existence value of 7.8 billion USD. When calculating the total economic value of natural resources, one issue that requires attention is that which Pearce put forward: it cannot be a simple addition of all components of the total economic value. This is because the components of economic value may be mutually exclusive. For example, the market value of cutting down trees and the indirect value of watershed protection cannot be obtained at the same time. However, as far as the research work currently launched on natural resource accounting is concerned, it is still very difficult to touch on research on the selection value, genetic value, and existence value of natural resources; however, an emphasis has been placed on research on the measurement of the market value and indirect use value of natural resources.

6.4.2

Models for the Value of Fishery Resources

It is very important to carry out accounting for fishery resources and other natural resources, especially value accounting. Researchers in many countries and international organizations believe that resource pricing is very important, but they also admit that pricing is very difficult. In this section, an integrated analysis of some pricing models related to fishery resources is carried out.

6.4.2.1

Shadow Price Model

The shadow price was first proposed by the Dutch economist Jan Tinbergen in the 1930s. However, before this, the famous Soviet Union economist L. V. Kantorovich proposed the theory of “objective constraint appraisal,” that is, the “shadow price” theory, in order to address the optimal use of resources. Later, Samuelson developed

6 Theories and Methods of Fishery Resource Accounting

311

Tinbergen’s “shadow price” theory, transformed it into a “price prediction” concept that mainly reflects whether or not resources have attained reasonable allocation and utilization, and made three specific supplements: (1) the shadow price as a “calculated price” with linear programming as the calculation method; (2) the “shadow price” as a type of “resource price”; and (3) the “shadow price” based on marginal productivity. In addition, he also referred to the marginal cost of goods as “shadow price.” Theoretically, we propose that the “illusory price” (nonlabor products, which thereby are things with no value, can have “imaginary prices”) theory of classical Marxist writers is interlinked with the internationally popular “shadow price” theory at present. Because the shadow price is a revision of the price currently in force according to the degree of resource scarcity and includes some social benefits and losses that cannot be expressed using price, it is more about conducting research on the use and consumption of natural resources by the entire society; therefore, the use of this calculation method can directly determine the social price of natural resources. The price of a natural resource obtained in this way can reflect both the mechanistic role of this type of resource in the entire economic operation and, at the same time, the effect and influence of the resource that has been consumed and used on the ecosystem. Therefore, the shadow price has gained wide application in the economic activities and dealings of various countries around the world, and its theories and methods are also comparatively mature. The shadow price is a calculated price with linear programming as the calculation method. Its specific calculation method is: Objective function: Max Z ¼ ∑ CjXj. Restraint condition: ai1x1 + ai2x2 + ^ + aijxij + ^ + ainxin  bi xij  0, i ¼ 1, 2, ^, m, j ¼ 1, 2, ^, n. In the formula, Cj is the benefit coefficient per unit quantity of each kind of natural resource; xj is each type of natural resource; aij is the restraint coefficient; and, Z is the target value (ecological and economic benefits, and so on). Then, dual programming can be utilized to find the shadow price Ui of the natural resource, that is: Objective function: Min TC ¼ ∑ biUi. Restraint condition: a1jU1 + a2j U2 + ^ + aijUi + ^ + amiUm  Cj Ui  0 In the formula, TC is total cost; and. Ui—decision variable, that is, the shadow price.

312

X. Chen

From a mathematical perspective, the shadow price is the optimal solution of linear dual programming. In terms of its economic meaning, when a resource attains optimal allocation to maximize the total social benefit, the amount of increase is the total social benefit brought by each additional unit of input of this resource. Shadow prices correctly reflect the degree of scarcity of resources and provide correct price signals and plans for the reasonable allocation and effective utilization of resources.

6.4.2.2

Marginal Opportunity Cost Model

Conceptual Framework of Marginal Opportunity Cost The concept of opportunity cost was proposed by the neoclassical school of economics. So-called opportunity cost refers to the benefits of another use that are abandoned when a certain resource is employed for a certain type of use when other conditions are the same. Or, it refers to another type of revenue that is abandoned when certain resources are utilized to obtain certain types of revenue when other conditions are the same. If there are many types of abandoned product value or revenue, the highest is opportunity cost. Obviously, not only is the financial cost included in the opportunity cost, but the profit that the producer can obtain when he is able to utilize the production factors represented by the aforementioned financial cost as effectively as possible is also included. The use of opportunity cost to determine the price of natural resources means that a portion of the profits is included in the cost; on the other hand, because natural resources (especially natural resources with better quality and extraction conditions) have scarcity in the physical sense, the use of a resource now means that the opportunity to utilize the same resource to obtain net income in the future is lost; therefore, opportunity cost also means that the income sacrificed in the future must be included in the cost. Marginal analysis research refers to the corresponding changes that occur in the dependent variable when unit changes occur in the independent variable. The opportunity cost of any goods and labor service is not constant. The opportunity cost of natural resources changes not only with the change in output but also with the change in the degree of scarcity of natural resources. Over time, the unit opportunity cost of natural resources usually increases gradually. Therefore, the price of natural resources is not determined by its average opportunity cost but by the marginal opportunity cost (MOC). The marginal production cost of natural resources is the portion of natural resource prices that is most easily understood and most easily accepted by people and is also the price of resources that can be directly reflected in the market. If a certain natural resource is inexhaustible and undepletable and there are no external environmental costs, then the marginal production cost of natural resources constitutes the whole price of natural resources. However, natural resources are scarce in real life, and natural resources will bring environmental benefits and losses in the process of being exploited and being utilized. Such scarcity and environmental benefits (or losses) should also be embodied in the price of

6 Theories and Methods of Fishery Resource Accounting

313

resources; these are the marginal user cost and the marginal external cost (MEC) that constitute the price of natural resources. The theory of MOC deems that the consumption and use of resources should include the following three types of costs: (a) Marginal production cost (MPRC)—The MPRC of natural resources refers to the corresponding changes in the total production cost caused by the unit change in the quantity of natural resources (such as catch). Fishers must pay for the production costs (such as fishing vessels, fuel oil, net gear, wages, and so on), and of course should also include new resource surveys and exploitation costs, as well as management costs (such as the costs of establishing prohibited fishing areas, closed fishing seasons) and so on. (b) Marginal user cost (MUC)—The user cost of natural resources refers to the cost generated in using resources now rather than leaving them for use by future generations. The user cost is determined according to the opportunity cost of using natural resources, whereas the MUC refers to the corresponding changes in the total user cost caused by the unit change in the quantity of natural resources. There must be two prerequisites for the existence of user costs, that is, the natural resources must have scarcity in the material sense, and there must be multiple options or multiple opportunities for the use of natural resources; these several options and opportunities are also in competition with each other. It needs to be emphatically pointed out that the user cost of natural resources is the cost that must be paid for the normal use of resources due to the scarcity of natural resources. The scarcity of natural resources is embodied in resource prices. (c) Marginal external cost (MEC)—Externality refers to the nonmarket effect generated by the economic activities of a certain economic party on other economic parties. The so-called nonmarket nature refers to the failure to reflect this type of influence through the market price mechanism. When economic parties obtain benefits due to the external economy, they do not need to pay remuneration to others; when they suffer losses due to external diseconomies, they also do not receive corresponding compensation. The benefits received by the affected persons due to the external economy and the losses suffered due to the external diseconomy are called external benefits and external costs, respectively. The MEC of natural resources refers to the corresponding changes in the total amount of the external cost caused by the unit change in the quantity of natural resources (amount of harvest or the proven amount). For example, in the exploitation process of fishery resources, unsustainable fishing behaviors, such as the discard of bycatch and the destruction of important habitats, have led to the destruction of the fishery ecological environment and damage to fishery resources, thereby generating external costs for the exploitation and utilization of fishery resources. This type of external cost should be embodied in the price of natural resources. The level of MECs depends not only on the size of the losses suffered by the victim but also depends on the victim’s evaluation of these losses. In summary, the aforementioned three items can be expressed by the following formula:

314

X. Chen

MOC ¼ MPRC þ MUC þ MEC Therefore, the MOC of natural resources not only includes the financial costs spent by the producer to harvest the natural resources but also includes the profits that the producer should obtain by engaging in production and includes the losses caused to others, society, and future generations due to the harvesting of natural resources. The MOC reflects the effect of change in the degree of scarcity of natural resources. In other words, the MOC of natural resources theoretically reflects the entire price paid by all of society (including producers) when a unit of natural resource is harvested.

Estimation of all Components of the MOC MPRC The MPRC is the part of the cost that directly corresponds to the production process. To facilitate estimation, it must maintain consistency with the existing appraisal principles in the national economic accounting system currently in force. Therefore, the MPRC should be all expenses incurred by fishing vessels in the process from exiting the port for fishing operations to returning to the port with the catch, which is specifically composed of the following parts: depreciation of fishing vessels and fishing gears, fuel oil, wages, profits, and so on.

MUC Fishery resources are a regenerable resource. If the exploitation and utilization are reasonable and the decrease or increase in resources is at an equilibrium or the amount of fishing is less than the amount of natural growth of the resource, then MUC ¼ 0. However, if overexploitation and nonsustainable utilization are carried out on fishery resources, then a decline and even depletion will appear in the fishery resources; at this time, the MUC is also no longer equal to zero. For fishery resources, the MUC should be equal to the amount of decrease in the future loss of income in fishery resources (the amount of fishing minus the amount of natural growth). It can be specifically determined by the following formula: Pt ¼

i ð1 þ iÞt h Q  Ed A aR0 þ ð1 þ ρÞ  d N i Qs  E s

In the formula, R0 is the basic rent of a certain fishery resource; a represents the abundance and the extraction and utilization conditions of the fishery resource and the grade coefficients of the difference in fishing grounds, difference in species, and difference in quality; A is the total amount of investment paid for the fishery resource;

6 Theories and Methods of Fishery Resource Accounting

315

Q is the total quantity of the beneficiary fishery resource; N is the fixed number of years of benefit; Qd is the quantity of demand; Qs is the quantity of supply; Ed is the demand elasticity coefficient; Es is the supply elasticity coefficient; i is the annual interest rate; ρ is the average rate of profit for the invested capital.

MEC The MEC refers to the loss caused to the ecological environment or the damage to the quality of the ecological environment in the process of resource extraction/use. Therefore, the MEC can be determined through changes in the value of the quality of the ecological environment. According to the theories of environmental economics, changes in the value of environmental quality can be measured from two perspectives: the loss/benefit generated from it and the cost of preventing/compensating for environmental deterioration. The externalities generated by the process of exploiting and utilizing fishery resources are mainly embodied in the side effects generated on the ecological environment during fishing production, such as the disappearance of biodiversity and a reduction in the area of habitats. Therefore, its MEC can be determined by the corresponding change in ecological value caused by each unit of fish caught. The ecological value of fishery resources mainly includes the protection of biodiversity, the maintenance of marine ecosystems, and sightseeing and tourism at sea. During specific calculations, the MEC can be determined using the following methods in view of the different situations (Fig. 6.2). Based on the aforementioned analysis, the MOC model is one of the more comprehensive theoretical frameworks for calculating the price of natural resources because this theoretical framework overcomes a common defect that exists in other theoretical frameworks: that is, the externalities of resource extraction and use (including resource depletion and environmental damage) are not fully considered.

6.4.2.3

Production Price Model

According to the theory of price, the full production price of natural resource products should be equal to the cost plus the profit plus the land rent. Of course, in Western economics, the cost itself already includes the average profit. Viewed from the value composition, the value P of a natural resource includes two parts: the first is the inherent value P1 of the natural resource itself, which is expressed as the land rent or the economic rent; the second is the value P2 formed by the input of labor, which is the production cost in the sense of Western economics. Thus, the natural resource value P is:

316

X. Chen

Fig. 6.2 Estimation method for the MEC

P ¼ P1 þ P2 According to the theory of land rent, R0 is set as the basic land rent or rent; a represents the abundance and exploitation and utilization conditions of the natural resource, that is, the income level difference coefficient formed by the regional difference, variety difference, and quality difference; then, the rent of this natural resource is R ¼ aR0; set i as the average interest rate, and then, the value Pi of the natural resource itself is: pi ¼

aR0 i

A is the total amount of investment in human power and property paid for the natural resource (converted into funds) Q is the total amount of beneficiary natural resource, and N is the fixed number of years of benefit; then, the annual amount of allocated investment per unit resource of the natural resource is A/(N  Q). Consider again the average profit ρ of the invested capital; then, that part of the resource value equivalent to (C + V + m) produced by the annual investment can be found; that is: A ð 1 þ ρÞ ¼ C þ V þ m NQ Taking into account the average interest rate (i), the value P2 formed by the input of labor in the natural resource can be found, that is:

6 Theories and Methods of Fishery Resource Accounting

P2 ¼

317

Að1 þ ρÞ CþV þm ¼ NQt i

Then, the total value P of the natural resource is: P ¼ P1 þ P2 ¼

h i 1 A aR0 þ ð1 þ ρÞ i N

or 1 P ¼ P1 þ P2 ¼ ðaR0 þ C þ V þ mÞ i The size of the value of the actual natural resource, that is, the price manifested in the market, also depends on the market supply (Qs), demand (Qd), and the corresponding supply price elasticity coefficient (Es) and demand price elasticity coefficient (Ed) of the resource. Considering these relationships and influences, then they can become, respectively: P¼

h i Q  Ed 1 A aR0 þ ð1 þ ρÞ  d i N Qs  E s

or Q  Ed 1 P ¼ ðaR0 þ C þ V þ mÞ  d i Qs  E s Taking into account the time factor of the capital, set P as the present value, Pt as the value in the t-th year, and the average interest rate as I; then, one has: Pt ¼

i ð1 þ i Þt h Q  Ed A ðt ¼ 1, 2, . . . , N Þ aR0 þ ð1 þ ρÞ  d N i Qs  E s

Pt ¼

ð1 þ i Þt Q  Ed ðaR0 þ C þ V þ mÞ  d ðt ¼ 1, 2, . . . , N Þ i Qs  E s

or

This formula is the basic theoretical formula for determining the value or production price of natural resources, and it fully complies with the principle for determining the price of natural resources. Regarding other factors that affect the production price of natural resources, they can all be considered or expanded on the basis of this formula. Of course, regarding a, R0, Qd, Qs, Ed, Es, and other parameters, they can all be determined through statistical data or experiments. However,

318

X. Chen

this assessment model does not consider the decline in natural resources and the effect on the ecological environment.

6.4.2.4

Cost Model

For the calculation of the price of proven fishery resources, it generally includes three components—the resource price, the price of resource exploration for the reserves, and the resource depletion compensation fee and environmental compensation fee, that is: P ¼ P1 þ P2 þ P3 In the formula, P is the total price of the known fishery resource, and P1 is the price of the fishery resource, which is composed of the absolute return and the differential return of the resource. In countries with market economies, P1 is equivalent to the rent collected during the exploitation of the fishery resource, with regard to the different varieties of fishery resources, and P2 is the price of resource exploration for the reserves; the calculation formula is: P2 ¼ Ce 

ð1 þ iÞt ð1 þ Pr Þð1 þ sÞ dð1  hÞ

In the formula, Ce is the cost of exploration in proving the reserves per unit resource; i is the annual interest rate; t is time (year); Pr is the average profit rate for the exploration department; s is the grade correction coefficient of the resource; d is the utilization rate of the fixed amount of reserves; and, h is the risk coefficient. P3 is the resource depletion compensation fee (for depletable resources) and the environmental compensation fee, which generally includes the protection fee, the resource quality loss fee, and the pollution or damage loss fee and so on that may result in terms of the ecological environment.

6.4.2.5

Market Inverse Calculation (Net Price) Model

The so-called net price refers to the balance of the income per unit resource minus the production cost. That is, the net income obtained from the resource production unit. The calculation formula is: P ¼ Ps  Pc.

6 Theories and Methods of Fishery Resource Accounting

319

In the formula, Ps is the supply price of the resource product, and Pc is the unit cost, which includes the average profit. The prerequisite for the application of such a method is that the resource must be considered a commodity in a better developed market; therefore, the market equilibrium price of this resource commodity is inevitably higher than the production cost. The international market price and nondistorted domestic market price can generally be selected for Ps, and the latter is suitable for nonexported resources. The advantage of the net price method is that it only requires current information related to prices and extraction and production costs and does not require future price and cost information.

6.4.2.6

Compensation Price Model

The theories and methods for the compensation price of natural resources mainly characterize the finite feature of natural resources. Price determination for this type of natural resource is in accordance with the principle of compensation. Although renewable resources can be renewed, restored, and regenerated by relying on the laws of nature, the intensity of human utilization cannot exceed the natural renewable capacity. At present, when humans exploit and utilize fishery resources, most have adopted modern means. For example, if a factory-like large-scale trawler is used in a fishery, its scale and strength may greatly exceed the self-restoration capacity of the resource. If one wants the resource to renew, restore, and regenerate, then it must be given man-made or artificial assistance. The consumption of such man-made or artificial assistance is referred to as the “compensation fee.” It is not only reasonable to determine the price of the replaced natural resource according to certain compensation fees, but it is also more effective and practical. Therefore, the price of natural resources, especially the price of renewable natural resources, is determined by the costs of resource exploitation and compensation. However, its high or low price level is determined with the understanding and a grasp of the situation for the upper and lower limits of the compensation for natural resource consumption. After renewable natural resources are used or consumed, they can be naturally restored and renewed; this is called the upper limit of consumption compensation, and this type of use and consumption is uncompensated. After being used and consumed, if the natural restoration and renewal limits and critical values of the natural resource are exceeded, then it cannot be restored and renewed naturally but can only be restored and renewed by relying on man-made or artificial assistance; this is called the lower limit of consumption compensation, and this type of use and consumption of natural resources is compensated. Then, the compensation price of a natural resource is a certain value or a certain interval value between the upper and lower limits of its consumption compensation price.

320

6.5 6.5.1

X. Chen

Value Accounting Example with Shrimp Overview of Shrimp Resources

For the past 30 years, the world’s shrimp industry has gradually shifted from marine fishing to aquaculture. In 1980, the world’s aquaculture production of shrimp was only 72,000 tons, accounting for only 4.2% of the total shrimp production. In the mid-1980s, however, aquaculture production began to increase year by year. In 1998, with the successful breeding of whiteleg shrimp (Litopenaeus vannamei), the shrimp farming industry entered an entirely new development period. In 2009, the global total shrimp production was 6.67  106 tons, of which the aquaculture production of shrimp reached 3.50  106 tons, accounting for 52.43% of the world’s total shrimp production (Jiao and Chen 2014). At present, there are approximately 60 countries engaged in shrimp farming globally, among which China, Thailand, Vietnam, Indonesia, Ecuador, Mexico, India, and Bangladesh are the main shrimp-producing countries. In 2009, the cumulative aquaculture production of shrimp from these eight main shrimpproducing countries reached 3.10  106 tons, accounting for 88.69% of the global total aquaculture production of shrimp. Among them, the aquaculture production in China accounted for 38.15% of the total aquaculture production of shrimp worldwide. Among the various cultured varieties of shrimp, Whiteleg shrimp has become the main cultured variety and has ascended into the ranks of the top three high-yield cultured shrimp species in the world(Jiao and Chen 2014).

6.5.2

Asset Value Accounting for Shrimp

The value accounting of marine fishery resources mainly involves resource appraisal; physical accounting will not be addressed herein. In this study, the farming cost of shrimp is used as the basis, and the resource price of shrimp is then obtained through the net price method. A cost-benefit analysis is conducted by using a shrimp cultivation survey provided to 54 shrimp farming cooperatives in five cities in Guangdong Province (Yangjiang, Zhanjiang, Shantou, Maoming, and Zhongshan), as shown in Table 6.7 (Jiao and Chen 2014). According to the sale of shrimp at the Humen Aquatic Products Wholesale Market in Dongguan City, Guangdong, the wholesale price of 60 tails/kg of shrimp is approximately 30 CNY/kg, and the total cost of shrimp farming is 17.38 CNY/kg; therefore, the resource price of shrimp is 12.62 CNY/kg. According to statistics from the FAO, from 2003 to 2009, the average annual total production of Chinese white shrimp was 1.0488 million tons (that is, 1.05  109 kg); therefore, the asset value of Chinese white shrimp was 13.25 billion CNY (Jiao and Chen 2014).

6 Theories and Methods of Fishery Resource Accounting

321

Table 6.7 List of the farming cost situation based on a survey of 54 shrimp farming cooperatives in Guangdong Province, 2010 (Jiao and Chen 2014) Main cost item Farming cost (CNY/500 g) Main cost item

Seedling 1.219 (14.037%) Wages

Farming cost (CNY/500 g)

0.649 (7.466%)

6.5.3

Drugs for shrimp 0.247 (2.842%) Rent for pond 0.89 (10.279%)

Feed 4.46 (51.375%) Electricity charge 0.548 (6.312%)

Hygiene and epidemic prevention 0.051 (0.588%) Other 0.262 (3.013%)

Mechanical wear 0.355 (4.088%) Total cost 8.690 (100.00%)

Nonasset Value Accounting for Shrimp

The nonasset value of shrimp includes the ecological function value and the social service value. In addition, the ecological function value can be calculated by the restoration and protection cost methods, and in terms of improving the fishery resource structure of the waters and repairing the marine ecological environment, breeding and release play very important roles. Therefore, we can use the input of shrimp breeding and release as the ecological function value of shrimp (Jiao and Chen 2014). Using Luoyuan Bay as an example, through the breeding and release actions over many years, the fishery resources in Luoyuan Bay have received effective protection and repair, the ecological environment has been further improved, and benefits have gradually emerged. According to statistics from the Bureau of Ocean and Fisheries of Luoyuan Bay from 1998 to 2006, Luoyuan Bay carried out shrimp breeding and release for eight consecutive years, with a cumulative release of 450 million shrimp and a capital input of 2.4 million CNY. In the 17 years from 1990 to 2007, China bred and released 201.676 billion tails of shrimp; therefore, China’s annual capital input was approximately 63.27 million CNY, and thus ecological function value of China’s shrimp was 63.27 million CNY per year (Jiao and Chen 2014). The social service value includes three parts—scientific research value, education value, and policy subsidy value. Among them, it would be reasonable to calculate the scientific research value according to the scientific research funding for shrimp in which all levels of government have invested, but it is difficult to collect complete statistical data in this respect; therefore, the plan here is to use the published scientific research results related to shrimp to calculate the scientific research value. Through a search of the VIP Database for Chinese Technical Periodicals, a total of 5409 academic papers on shrimp were published in periodicals from 2005 to 2013. Calculated by using an average of 100,000 CNY spent on scientific research funding required for each resulting academic paper, China invested a total of 540.9 million CNY in scientific research funding for shrimp in the 8 years; that is, the scientific research value of shrimp was 676 million CNY per year (Jiao and Chen 2014). Regarding the education value, a search was carried out in Dangdang with shrimp as the search term. The search found that a total of 56 books, three e-books, and six

322

X. Chen

movies or television shows relevant to or involving shrimp were released from 1999 to 2013. Agricultural breeding was the content for most productions, and a small number were children’s stories or had to do with industrial technology. The average price of a book was between 10 and 20 CNY. If calculated according to the average circulation volume of 20,000 copies per book, the total sales revenue is 11.2–22.4 CNY million, and the average of 16.8 CNY million is taken. The average price of an e-book is 2 CNY. If calculated according to an average download of 50,000 per book, then the total sales revenue is 300,000 CNY. The average price of a film or television show is CNY 8. If it is calculated according to an average of 10,000 views per film or television show, then the total sales revenue is 480,000 CNY. By synthesizing, one can obtain an average annual revenue of 1,255,700 CNY; that is, the education value for shrimp is 1,255,700 CNY per year (Jiao and Chen 2014). Regarding the policy subsidy value, there are also great differences in the subsidies for shrimp farming because the situation in each area is different. Therefore, 250 CNY per mu for the postdisaster subsidy from the Bureau of Ocean and Fisheries of Meilan District, Haikou City, is used here as a reference. China’s annual shrimp farming area is approximately 23.7  104 hm2 (that is, 3.56  106 mu); therefore, China’s policy subsidy value for shrimp is 890 million CNY (Jiao and Chen 2014). To summarize the above income, China’s annual social service value for shrimp totals 766.2557 million CNY, and the ecological function value is 63.27 million CNY; therefore, the total sum of the nonasset value for shrimp is 830 million CNY each year. Therefore, the total value of shrimp is 14.08 billion CNY (Jiao and Chen 2014).

References Jiao M, Chen XJ (2014) Application of natural resources value accounting theory into marine fisheries resources. Trans Oceanol Limnol 3:75–81. (in Chinese) Pearce DW, Turner RK (1990) Economics of natural resources and the environment. Harvester Wheatsheaf, London, New York

Chapter 7

Global Climate Change and Sustainable Development of Fisheries Xinjun Chen and Qi Ding

Abstract In recent decades, global environmental problems, such as eutrophication, global warming, ozone depletion, and ocean acidification, have attracted worldwide attention. A great deal of facts have proved that the global environmental problems have had a significant impact on the world’s fishery resources and marine ecological environment, and have affected the sustainable development of fisheries in some countries and regions. To this end, relevant international organizations and scholars have carried out vulnerability assessments of marine fisheries in coastal states around the world in the context of climate change, identifying countries and areas where climate change will have the greatest impact on marine fisheries, to support efforts to reduce the impact of climate change. In 2015, the United Nations adopted the 2030 agenda for sustainable development, which will help to benefit present and future generations from aquatic resources and to help fisheries provide nutritious food for a growing population, and promote economic prosperity, create jobs, and ensure the well-being of the people. In the context of sustainable development, the Food and Agriculture Organization of the United Nations has launched the Blue Growth Initiative, which focuses on achieving sustainable fishery, reducing the degradation of fish habitats, and protecting biodiversity. To this end, the main contents of this chapter are: (1) describing the relationship between Global Environmental Issues and fisheries; (2) introducing the vulnerability of marine fisheries to food security in the context of climate change, and analyzing the impact of marine fisheries on their food security in 109 countries around the world; (3) briefly introducing international action for Sustainable Fisheries Development, agenda 2030 and blue growth; and (4) introducing carbon sink fisheries and their roles.

X. Chen (*) College of marine sciences, Shanghai Ocean University, Lingang New city, Shanghai, China e-mail: [email protected] Q. Ding Yellow Sea Fisheries Research Institute, Chinese Academy of Fishery Sciences, Qingdao, Shandong, China © China Agriculture Press 2021 X. Chen (ed.), Fisheries Resources Economics, https://doi.org/10.1007/978-981-33-4328-3_7

323

324

X. Chen and Q. Ding

Keywords Global Environmental Issues · Sustainable Development of fisheries · Vulnerability · Carbon Sink Fisheries

7.1

Global Environmental Change and Fisheries

7.1.1

Effect of Eutrophication on Fisheries

The harm of water eutrophication mainly manifests in three aspects: eutrophication causes a reduction in the transparency of water, making it difficult for sunlight to penetrate the water layers and thereby affecting the photosynthesis and oxygen release of plants in the water; moreover, the proliferation of plankton in large quantities consumes a large amount of oxygen in water, seriously depleting dissolved oxygen in water; and the photosynthesis of plants on the surface of water may cause local supersaturation of dissolved oxygen. The supersaturation or reduction in dissolved oxygen are both harmful to aquatic animals (mainly fish), causing fish to die in large quantities. According to statistics, a total of 73 red tides occurred in China’s offshore areas in 2012, with a cumulative area of 7971 square kilometers. Red tides in the East China Sea were the most frequent, at 38 instances, and the cumulative area of red tides in the Bohai Sea was the largest, at 3869 square kilometers. The period with the highest red tide incidence was concentrated in May and June. A total of 18 dominant species caused the red tides, and the dominant species that caused multiple red tides or occurred in large areas mainly included Karenia mikimotoi, Skeletonema costatum, Noctiluca scintillans, Prorocentrum donghaiensis, and Aureococcus anophagefferens. From May 18 to June 8, 2012, 10 red tides occurred in the offshore area of Fujian, with Karenia mikimotoi as the dominant species, covering a cumulative area of 323 square kilometers. Karenia mikimotoi is a poisonous and harmful red tide algae species and was the main cause of large-scale deaths in aquaculture shellfish, especially abalone, in Fujian Province in 2012. Offshore areas with multiple red tides included Zhejiang, Liaoning, Guangdong, Hebei, and Fujian. According to statistics, the economic losses brought by harmful red tides to China’s marine fisheries have reached several billion RMB per year.

7.1.2

Effects of Global Warming on Fisheries

7.1.2.1

Ecological and Physical Effects of Climate Change

With the rise in global temperatures, the amount of water vapor in oceans has increased greatly, exacerbating the ocean warming phenomenon, but the warming phenomenon in oceans is geographically uneven. The joint effect of temperature and salinity changes due to climate warming has decreased the water density at the

7 Global Climate Change and Sustainable Development of Fisheries

Climate Change

325

Fishery SES

1

Temperature

Ecosystems Ecosystem Processes Aquatic Environment Fish Populations and Yields

2

GHGs

Extreme Events: Sea Level Rise Acidification

Ecological Role Impacts on Society

Politics, Society and Economy

Direct Role

Fishing Activity

Market

Production Efforts

Migration Labor

Livelihood Management

Consumption Patterns Mitigation Measures Fuel Prices Examples of Impacts

Indirect Ecological Effects Yiels Changes Changes in Population Distribution Increased Yield Variability Seasonal Changes in Production

Direct Physical Effects Damage to Infrastructure Damage to Net Gear Increase of Sea Risks Loss/Acquisition of Navigation Channels Inundation of Fishing Communities

Indirect Socio-economic Role Migration of Large Numbers of Fishermen Increased Fuel Costs Reduced Health Due to Disease Relative Profitability in Other Areas Resources Available for Management Reduced Security Adaptive Funds

Fig. 7.1 Schematic diagram of the direct and indirect effects of climate change on fisheries (FAO 2009). Note: 1 Social-ecological system; 2 Greenhouse gases

surface layer of the ocean, thereby increasing vertical stratification. These changes may decrease the availability of nutrients in the surface layer and, therefore, affect primary and secondary productivity in warm areas. There is evidence showing that seasonal upwelling may be affected by climate change, which in turn affects the entire food web. The consequences of climate warming may affect the community composition, productivity, and seasonal processes of plankton and fish. As the ocean warms, the number of marine fish populations that move toward the range of the two poles will increase, while the number of populations that move toward the equatorial range will decrease. In general, it is expected that climate warming will drive the distribution range of most marine species toward the two poles, expanding the distribution range of warm water species and shrinking the distribution range of coldwater species. Changes in fish communities will also occur in pelagic species; it is expected that they will shift to deeper waters to offset the increase in surface temperature. In addition, ocean warming will also change the predator-prey

326

X. Chen and Q. Ding

matching relationship, which in turn will affect the entire marine ecosystem (Fig. 7.1). Surveys have shown that due to global warming, which has led to the successive collapse of two large ice shelves in Antarctica, a seabed with an area of 10,000 square kilometers has been revealed. Thus, scientists have been able to discover many unknown new species of octopus, coral, and shrimp, among others. According to a report by the US National Oceanic and Atmospheric Administration, there has been an increase in the incidence of Humboldt squid stranding death on the west coast of the United States in the past decade. These giant squids generally live in the warm waters south of the Gulf of California and along the coast of Peru. However, as the seawater has warmed, they swam northward, and a large number of individuals have stranded and died on the beach. The distribution range of its northern limit also expanded from 40
N in the 1980s to 60
N currently. The Intergovernmental Panel on Climate Change believes that in the past century, due to the influence of the greenhouse effect, the Earth’s average temperature has already risen by 0.5–1
C and that the structure and function of the Earth’s ecosphere, which includes fisheries, have been affected extremely significantly. In the next 50 or 100 years, the effects of climate change on fisheries worldwide may even exceed those of overfishing. Fish are poikilothermic animals, and the way by which they adapt to changes in the environmental temperature is by changing habitat waters. If the water temperature of the original habitat increases, fish often chooses to migrate toward higher latitudes or to the waters of the open sea where the water temperature is lower. Scientists from Canada, Japan, the United Kingdom, the United States, and other countries have analyzed the dynamic relationship between the seawater temperature in the frigid and temperate zones of the northern hemisphere and the habitat range for sockeye salmon (Oncorhynchus nerka) in the last 40 years of the second half of the twentieth century and found that the water temperature warming trend for the surface layer of the ocean has caused the disappearance of sockeye salmon from the vast majority of the waters in the Northern Pacific Ocean. If the surface temperature of seawater rises by 1–2
C by the middle of the twenty-first century, then the habitat waters of the sockeye salmon will shrink to only the Bering Sea. The increase in water temperature will cause changes in the temporal and spatial distribution range and geographic population numbers of fish. Similarly, it will cause long-term changes in trends to the temporal and spatial distribution and geographic community composition of phytoplankton and zooplankton, which are the basic producers in the waters, ultimately leading to the occurrence of structural changes in the upper food web that uses phytoplankton as feed, thereby generating profound effects on fisheries.

7.1.2.2

Effects of Climate Change on Fishers and their Communities

It is expected that economies that rely on fisheries, coastal communities, and fishermen will be affected by climate change in different ways, including population

7 Global Climate Change and Sustainable Development of Fisheries

327

relocation and migration, owing to the effects of a sea-level rise and changes in the frequency, distribution, or intensity of tropical storms on coastal communities and infrastructure, livelihoods that are less stable than before and changes in the availability and quantity of edible fish. The vulnerability of fisheries and fishing communities depends on the degree and sensitivity of their exposure to change and the ability of individuals or systems to predict and adapt. Adaptability depends on different community assets, which are affected by culture, current institutional and governance frameworks, and the exclusion or utilization of adaptive resources. Vulnerability varies between countries and communities and between groups within communities. In general, poorer and less powerful countries and individuals are more easily affected by climate change. In communities where resources have already been affected by overfishing and ecosystem degradation and that are facing poverty and a lack of appropriate social services and necessary infrastructure, the vulnerability of fisheries may be higher.

7.1.3

Effect of Ozone Layer Destruction on Fisheries

After massive ozone layer depletion, the ability to absorb ultraviolet (UV) radiation has been greatly weakened, leading to a significant increase in the UV-B rays reaching the surface of the Earth, endangering human health and the ecological environment in many respects. The effects of UV-B on human health, terrestrial plants, aquatic ecosystems, biochemical cycles, materials, the atmospheric composition of the troposphere, air quality, and other aspects have already received widespread attention. Although the ozone depletion crisis is not as obvious as environmental pollution, the lack of an ozone layer is equivalent to allowing the sun’s UV rays to easily invade the Earth, causing catastrophic effects on the natural ecology and even humanity itself. For example, the energy of radiation from UV rays is quite strong and can cause fatal damage to plants and affect the ecology on land. Excessive radiation from UV rays can also kill plankton in the surface layer of the ocean, and once these organisms at the bottom of the food chain die, the balance of the entire marine ecosystem will be disrupted. Researchers have measured the increase in UV-B radiation and the amount of its penetration into the water in the Antarctic region, and there is sufficient evidence to confirm that the natural phytoplankton community is directly affected by changes in ozone. Research has shown that the UV-B radiation in sunlight has a harmful effect on the early development of fish, shrimp, crab, amphibians, and other animals. The most serious effects are decreased fecundity and incomplete larval development. Even at existing levels, UV-B rays from sunlight are already a limiting factor. A small increase in the amount of exposure to UV-B rays will lead to a significant decrease in consumers’ biological quantity.

328

7.1.4

X. Chen and Q. Ding

Ocean Acidification and Its Effect on Fisheries

Because phytoplanktons constitute the basis and primary productivity of the marine food web, their “reshuffling” is very likely to impact many marine animals, from small fishes and small shrimps to sharks and giant whales. In addition, in seawater with a low pH value, the value of the nutrients of the feed decrease, and changes also occur in the ability of phytoplankton to absorb various nutrients. Moreover, the increasingly acidic seawater corrodes the bodies of marine organisms. Studies have shown that the efficiency by which calcified algae, corals, shellfish, crustaceans, and echinoderms form calcium carbonate shells and skeletons in an acidified environment is significantly reduced. Ocean acidification directly affects the quantity of marine biological resources, leading to permanent changes in commercial fish species, and will ultimately affect the production of marine fishing, threatening the food security of several million people. Although there is still not yet a convincing prediction at present on how large of an effect changes in the chemical properties of seawater will bring to fishery production, one can be certain that ocean acidification will cause fishery production to decrease and the cost of fishery production to increase. Ocean acidification causes a decrease in fish habitats. Coral reefs are the main habitat for fish and other marine animals. According to estimates, the value that corals and coral ecosystems create for humans exceeds 375 billion USD. If coral reefs decrease by a large amount, there will be a major effect on the environment and the social economy. Ocean acidification results in a decrease in fish food organisms. For some plankton at the lowest level of the food chain, ocean acidification hinders the ability to form calcium carbonate, which makes it difficult for these organisms to grow, thereby leading to a reduction in the production of fishes at the upper levels of the food chain. Therefore, the effect of the acidification of seawater on marine organisms will inevitably endanger the livelihoods of these poor people.

7.2

Evaluation of the Food Security Vulnerability of Fisheries Under the Effects of Climate Change

Traditionally, fishery management has always paid attention to realizing revenue maximization for capture fisheries, while ensuring the sustainability of fishery resources. However, in recent years, people have started to turn their attention to the importance of fish as food and as a source of essential nutrients, while ensuring the protection of the ecosystem. The FAO Committee on Fisheries has selected fish and nutrition as a topic for discussion at the most recent several meetings, and this is proof of such a change. Evaluations of the vulnerability of marine fisheries under the effects of climate change are able to identify the countries that are most greatly harmed by climate change, countries with a high degree of reliance on the fishery

7 Global Climate Change and Sustainable Development of Fisheries

329

sector for food security, employment, and the economy (Ding 2017), as well as countries with low adaptive capacities that have limited resource and social abilities, are thereby helpful for the adoption of measures to reduce vulnerability. Vulnerability evaluations play a core role in the identification of regions that most need to adopt measures and thereby prioritize the execution of climate adaptation plans, and vulnerability evaluations have increasingly received attention from policymakers and academia. Since Allison et al. (2009) first carried out an evaluation of the global vulnerability of fisheries, and then the vulnerability evaluations of fisheries at different scales have been carried out. Vulnerability evaluations at the national level can identify the countries with the highest vulnerability, thereby providing guidance on policy responses and adaptive management strategies at a national level. In addition, Allison et al. (2009) suggested that future analysis at a macro level should utilize the most relevant climate-driven factors among all systems and that analyses on marine fisheries and inland fisheries should be conducted. Among the total productions in fishes, crustaceans, and mollusks worldwide in 2013, 57% of production came from the fishing industry and 43% of production came from the aquaculture industry. Among the total global capture production in 2013, 87% of the capture production came from marine waters and 13% came from inland waters. Due to the significant differences in the proportion of marine catch accounting for the total production in various countries worldwide, even though the vulnerability to climate change in certain countries is at the same level, the degree of effect on the food security in countries is different. Until now, only three studies have been carried out with regard to vulnerability evaluations of fisheries at the national level: Allison et al. (2009), Barange et al. (2014), and Monnereau et al. (2015). However, none of the aforementioned three studies clearly elucidated the importance of marine fisheries in the fishery sector and the marine product security of various countries; moreover, none of them explored the specific policies that need to be implemented, which is also a deficiency commonly seen in the literature on vulnerability. The vulnerability evaluation framework was used to assess the food security vulnerability of marine fisheries in 109 countries worldwide (accounting for 92% of the total capture production of the world in 2013) when facing climate shocks. Ding (2017) first explored the role played by marine fisheries in the food and nutrition security of various countries. Unlike the study by Allison et al. (2009) (in which the exposure index is only the average surface temperature), Ding (2017) used four indicators that had a direct significant effect on marine fisheries, i.e., (1) sea surface temperature anomalies; (2) UV radiation; (3) ocean acidification; and (4) sea surface rise, to assess the vulnerability to climate change in various coastal nations. Ding (2017) aimed to obtain the regions that most needed to adopt intervention measures and understand the driving factors of vulnerability to thereby determine the direction of future research. Because food and nutrition security is at present an important global policy issue, this chapter further explores the policy measures for reducing vulnerability to climate change in highly vulnerable regions.

330

7.2.1

X. Chen and Q. Ding

Importance of Marine Fisheries in the Food and Nutrition Security of Various Countries

To assess the importance of marine fisheries in the food and nutrition security of 109 countries, the relationship between domestic aquatic production and aquatic product trade balance is first explored. The 109 countries under discussion are divided into two categories: countries with a net import of aquatic products and countries with a net export of aquatic products. For the 64 countries with a net import of aquatic products, there are two those with net import quantities greater than the domestic aquatic product supply and those with net import quantities less than the domestic aquatic product supply. There are 29 countries with net import quantities greater than the domestic aquatic product supply; for these countries, changes in the trade flow have a more significant effect on food security. There are 35 countries with domestic aquatic product supply greater than the net import quantities, and the fish protein in their daily diet is mainly supplied by domestic aquatic products. There are 45 countries that have a net export of aquatic products; for these countries, the domestic aquatic product supply has an important role in the food security of the local population. For the aforementioned 80 countries in which domestic aquatic products are the main source of aquatic product supply, the degree to which their marine fisheries contribute to domestic aquatic production is further explored (Table 7.1). The study shows that for most of the countries that rely on domestic aquatic production to satisfy the nutritional needs of their populations, marine fisheries play an important role in the supply of aquatic products (Table 7.1). Specifically, among the aforementioned 80 countries, the marine fishery production of 64 countries account for more than 50% of their total production of aquatic products. The remaining 16 countries mainly rely on inland fisheries/the aquaculture industry to provide fish protein, and they are located in Europe (Greece), North America (Costa Rica, Cuba, Guatemala, and Honduras), South America (Brazil and Colombia), Africa (Democratic Republic of the Congo, Egypt, Kenya, and Tanzania), and Asia (Bangladesh, Cambodia, China, India, and Vietnam).

7.2.2

National Food Security Vulnerability caused by the Effects of Climate Change on Marine Fisheries

Ding (2017) assessed that the national food security vulnerability caused by the effects of climate change on marine fisheries at a national scale. It was found in the study that the food security vulnerability associated with marine fisheries under climate change is closely related to the national development status. The vulnerability is highest in developing countries in Asia, Africa, Oceania, and South America (Table 7.2). The correlation between vulnerability and adaptability is the highest (R2 ¼ 0.64), followed by sensitivity (R2 ¼ 0.57), while the correlation between

7 Global Climate Change and Sustainable Development of Fisheries

331

Table 7.1 The proportion of marine catch accounting for the total production of aquatic products in the 80 countries (Ding 2017) Country Algeria Angola Argentina Bangladesh Belize Brazil Cambodia Canada Cape Verde Chile China Colombia Democratic Republic of Congo Costa Rica Croatia Cuba Denmark Ecuador Egypt El Salvador Peru Republic of Korea Latvia Liberia Lithuania Madagascar Malaysia Maldives Mauritania Mexico Morocco Mozambique Namibia the Netherlands New Zealand Nicaragua Norway Oman Pakistan Panama

Proportion % 98 96 98 17 93 44 17 80 100 70 24 34 2 43 85 43 95 61 8 89 98 78 99 77 94 71 83 100 96 85 99 65 99 87 80 61 64 100 57 95

Country Philippines Poland Russia St. Vincent and the Grenadines Samoa Senegal Solomon Islands South Africa Spain Sweden Tanzania Thailand Tunisia Turkey the United Kingdom the United States Uruguay Vanuatu Venezuela Vietnam Estonia Fiji Finland Gabon the Gambia Georgia Ghana Greece Guatemala Guinea Guinea-Bissau Guyana Honduras Iceland India Indonesia Iran Ireland Japan Kenya

Proportion % 68 78 91 100 100 92 100 99 79 90 16 53 91 62 75 92 97 100 73 43 95 94 78 70 88 96 68 36 46 85 98 98 17 99 38 60 55 86 85 4

332

X. Chen and Q. Ding

Table 7.2 Food security vulnerability of the marine fisheries in 109 countries worldwide when facing climate shocks (Ding 2017) Country the Netherlands Germany Denmark Belgium Norway the United Kingdom Sweden the United States France Costa Rica Ireland Italy Finland Ecuador Chile New Zealand Malta Guatemala Poland El Salvador Spain Croatia Lithuania Canada Estonia Japan Latvia Albania Nicaragua Oman Georgia Belize Jamaica Morocco Barbados Mauritius South Africa Iran Cuba St. Vincent and the Grenadines Honduras

Vulnerability 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3 3 3 3 3 3 3 3

Country Kuwait Portugal Iceland Mexico Australia Peru Greece Algeria Uruguay United Arab Emirates Tunisia Russia Gabon Republic of Korea Romania Brunei Argentina Colombia Bulgaria Panama Ukraine Brazil Israel Namibia Turkey Jordan Cyprus – Thailand Bangladesh Indonesia Cote d’Ivoire Samoa Tanzania Egypt Fiji Liberia Senegal Cape Verde Vietnam

Vulnerability 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 – 4 4 4 4 4 4 4 4 4 4 4 4

3

Togo

4 (continued)

7 Global Climate Change and Sustainable Development of Fisheries

333

Table 7.2 (continued) Country China

Vulnerability 3

India Kenya Angola Saudi Arabia Cameroon Venezuela Malaysia Trinidad and Tobago Dominican Republic Pakistan Lebanon Ghana Benin

3 3 3 3 3 3 3 3 3 3 3 3 3

Country Democratic Republic of the Congo Vanuatu Nigeria Philippines Madagascar the Gambia Guinea Maldives Cambodia Solomon Islands Guinea-Bissau Guyana Mozambique Mauritania

Vulnerability 4 4 4 4 4 4 4 4 4 4 4 4 4 4

Note: 1 ¼ extremely low; 2 ¼ low; 3 ¼ medium; 4 ¼ high

vulnerability and exposure is comparatively low (R2 ¼ 0.42). Among the 27 countries with high vulnerability, 23 also have a high sensitivity. The independent variable that has the highest correlation with vulnerability is the human development index (HDI) (R2 ¼ 0.64), followed by worldwide governance indicators (R2 ¼ 0.50) and life expectancy at birth (R2 ¼ 0.49). This shows that countries with a higher level of development, longer population lifespan, and stronger governance ability have smaller risks of food security caused by climate change. The food security vulnerability when marine fisheries are facing climate shocks is the result of the comprehensive action of exposure, sensitivity, and adaptability. Therefore, the national situation regarding the exposure, sensitivity, and adaptability of countries with high vulnerability is further explored in this chapter. Due to the lower exposure and sensitivity of European countries, as well as their higher adaptive capacity, no country that is highly vulnerable to climate change has emerged in Europe (Table 7.2). The high sensitivity of Iceland to climate change is mainly due to the higher contribution rate of its marine fisheries to the national Gross Domestic Product (GDP). The moderate exposure in Bulgaria, Greece, Iceland, and Romania is compensated by their lower dependence on fisheries and higher adaptive capacity, placing these countries at a low or extremely low level of vulnerability. The dependence on fisheries in North American countries is relatively low, and highly sensitive countries have not emerged in North America. The moderate adaptability of Barbados, the Dominican Republic, as well as Trinidad and Tobago (with relatively high life expectancy at birth, worldwide governance indicators, and economic development level) partially offsets their high exposure. The extremely low adaptability and moderate exposure of Honduras have led to its moderate

334

X. Chen and Q. Ding

vulnerability. In addition, there are seven North American countries that also have moderate vulnerability (Table 7.2), but the potential factors that have caused each country’s vulnerability are different. Cuba, Jamaica, and Saint Vincent and the Grenadines have moderate vulnerability mainly due to their high exposure and serious dependence on marine fisheries to provide employment opportunities, whereas Belize, Honduras, and Nicaragua have moderate vulnerability that is mainly caused by the low level of per capita GDP due to their higher exposure level (Table 7.2). High exposure, high sensitivity (mainly from high employment dependence), and extremely low adaptability have led to Guyana, having high vulnerability (Table 7.3). Although Venezuela also exhibits high exposure, low sensitivity and moderate adaptability have put its vulnerability to climate change at a moderate level (Tables 7.3–7.5). The output value of the marine fisheries in Peru is about 11% of its GDP, which has led to Peru having high sensitivity. Most African countries have a high vulnerability rating. It was thought in the study by Ding (2017) that 15 of the 27 countries with high vulnerability are from Africa. Among the 109 countries included in the study by Ding (2017), the vulnerabilities of Mauritania and Mozambique are the highest (Table 7.2). The high vulnerability in Africa mainly comes from their high levels of exposure and dependence on fisheries as well as low levels of adaptive capacity (Tables 7.3 and 7.5). African countries seriously depend on marine fisheries to provide employment opportunities, create income, and supply food. For example, the output value of marine fisheries in Mauritania accounts for 23% of its GDP; and the per capita daily intake of animal protein in the Democratic Republic of Congo is only 4.3 g, and 38% of the animal protein comes from fish. Furthermore, of the 27 countries with extremely low adaptability studied by Ding (2017), 20 are in Africa (Table 7.5). Many Asian countries have a high vulnerability rating. Based on the data from Table 7.2, Bangladesh, the Maldives, Cambodia, Vietnam, and the Philippines are highly dependent on marine fisheries to supply animal protein, create income, and provide employment opportunities. Ten of the 25 Asian countries have high exposure (Table 7.3), but the high exposure of Israel and Cyprus is partially offset by their high adaptability and low dependence on fisheries. Apart from New Zealand, the exposure of the other Oceanic countries is at a relatively high level (Table 7.3). The high exposure of Australia is compensated by its high adaptability and extremely low sensitivity (Table 7.4). However, the Solomon Islands, Samoa, Fiji, and Vanuatu have high exposure levels, which are mainly dependent on marine fisheries to provide sources of protein and livelihoods, and their adaptability is comparatively weak (Table 7.5).

7 Global Climate Change and Sustainable Development of Fisheries

335

Table 7.3 Food security exposure of the marine fisheries in 109 countries worldwide when facing climate shocks (Ding 2017) Stage of exposure 1 1 1 1 1 1 1 1 1 1

Country Ecuador Guatemala Peru El Salvador Costa Rica Belgium Germany the Netherlands Denmark Democratic Republic of the Congo Chile Namibia Gabon Albania Croatia Cameroon Poland Angola Italy Lithuania Algeria Latvia France the United Kingdom the United States Malta Tunisia Mexico Benin Liberia Panama

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3

Argentina Romania

3 3

Nigeria Iceland Brazil Bulgaria South Africa

3 3 3 3 3

Country Bangladesh Russia Estonia Norway Sweden Kuwait Spain Ireland the Gambia Morocco Ghana Finland Maldives Ukraine India Senegal Colombia Kenya Guinea-Bissau Belize New Zealand Cote d’Ivoire Guinea Portugal Nicaragua Uruguay Pakistan – Tanzania Venezuela Dominican Republic Barbados Trinidad and Tobago Mauritius Guyana Samoa Australia Indonesia

Stage of exposure 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 – 4 4 4 4 4 4 4 4 4 4 (continued)

336

X. Chen and Q. Ding

Table 7.3 (continued) Country Greece Togo Jamaica Japan Honduras Canada Jordan Iran Turkey United Arab Emirates Georgia Cuba Oman China Brunei St. Vincent and the Grenadines Republic of Korea

Stage of exposure 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3

Country Malaysia Thailand Vietnam Madagascar Israel Lebanon Solomon Islands Mozambique Cape Verde Egypt Fiji Philippines Cyprus Saudi Arabia Cambodia Vanuatu Mauritania

Stage of exposure 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

Note: 1 ¼ extremely low; 2 ¼ low; 3 ¼ medium; 4 ¼ high

7.2.3

Analysis of Factors Affecting the National Food Security Vulnerability caused by Marine Fisheries

Grasping the reasons for which the effects of climate change on marine fisheries have generated major social influence and caused vulnerability to climate change provides a very useful entry point for guiding future research and formulating measures to reduce vulnerability to climate change. It has been found that the vulnerability of national food security (fishery-related) caused by climate change is closely related to the development state of one country and that the vulnerability of developing nations such as in Africa and Asia is the highest. For countries in which the effects of climate change on marine fisheries have caused the highest food security vulnerability, Oceanic countries (for example, Fiji and Vanuatu), African countries (for example, Guinea and Senegal), South American countries (for example, Guyana), and Asian countries (for example, the Maldives) are highly dependent on marine fisheries to satisfy the nutritional needs of their populations. Their domestic aquatic production is the main source of animal protein supply, and marine capture production accounts for more than 85% of the total fishery production. The effects of climate change on the sustainable development of fisheries have received widespread attention in recent years. To date, the research results of Allison et al. (2009) have been cited more than 500 times. This study has had an important influence on both the formulation of international policies as well as the allocation of international funds for countries to respond to climate change. However, this study

7 Global Climate Change and Sustainable Development of Fisheries

337

Table 7.4 Food security sensitivity of the marine fisheries in 109 countries worldwide when facing climate shocks (Ding 2017) Country Germany Israel Romania the United States the Netherlands Albania Jordan Bulgaria the United Kingdom Sweden Belgium Poland France Saudi Arabia Australia Italy Ireland Canada Ukraine Cyprus South Africa Greece Argentina Lithuania Brazil Colombia Denmark Turkey Georgia China Republic of Korea Tunisia Panama Gabon Ecuador Oman Pakistan Dominican Republic Chile St. Vincent and the Grenadines

Stage of sensitivity 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3 3 3 3 3 3 3 3

Country Guatemala Spain New Zealand Uruguay Croatia Costa Rica Portugal Algeria Mexico Malta Estonia Latvia United Arab Emirates Finland Kuwait El Salvador Honduras Nicaragua Russia Brunei Lebanon Mauritius Kenya Venezuela Japan Norway Iran – Benin Cameroon Madagascar Namibia Vanuatu Iceland Liberia Samoa Philippines Togo Cape Verde Ghana

Stage of sensitivity 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 – 4 4 4 4 4 4 4 4 4 4 4 4 (continued)

338

X. Chen and Q. Ding

Table 7.4 (continued) Country Jamaica Malaysia Egypt Belize Cuba Barbados Trinidad and Tobago Tanzania Angola Morocco India

Stage of sensitivity 3 3 3 3 3 3 3 3 3 3 3

Indonesia Cote d’Ivoire Fiji Thailand

3 3 3 3

Country Vietnam Cambodia Nigeria Peru Solomon Islands Mozambique Senegal Bangladesh Guinea the Gambia Democratic Republic of the Congo Guyana Guinea-Bissau Mauritania Maldives

Stage of sensitivity 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

Note: 1 ¼ extremely low; 2 ¼ low; 3 ¼ medium; 4 ¼ high

did not clarify the importance of marine fisheries in the food security and economy of various countries around the world. It was found in the study by Allison et al. (2009) that the countries with the highest vulnerability to climate change are distributed in Asia, Africa, and northwestern South America; Bangladesh and Vietnam have high vulnerability ratings, but the aquaculture productions in countries such as Bangladesh and Vietnam are very high, accounting for 49% and 53% of their total production, respectively. Therefore, these countries may not have suffered the serious effects of climate change on their marine fisheries compared with that of other countries that have high vulnerability ratings but that depend on marine fisheries to provide food and nutrition sources. Because marine fisheries and inland fisheries are considered together within the global range, Allison et al. (2009) used atmospheric surface temperature as an indicator of climate change exposure; however, the most relevant factors that drive climate in different systems differ; therefore, it is more suitable to discuss marine fisheries and inland fisheries separately. Atmospheric surface temperature is a suitable exposure indicator for inland fisheries, but sea surface temperature may be more suitable as an exposure indicator for marine fisheries. It was thought in research that countries with high vulnerability to climate change usually have higher levels of sensitivity and lower levels of adaptability. According to the main sources of aquatic product supply, countries with high vulnerability are generally divided into three categories in this chapter: countries in which aquatic product consumption mainly comes from the import of aquatic products; countries in which aquatic product consumption mainly comes from the aquaculture industry/ inland fisheries; and countries in which aquatic product consumption mainly comes

7 Global Climate Change and Sustainable Development of Fisheries

339

Table 7.5 Food security adaptability of the marine fisheries in 109 countries worldwide when facing climate shocks (Ding 2017) Country Norway Iceland Denmark Sweden the Netherlands Australia Ireland Finland Canada Germany the United Kingdom New Zealand Japan the United States Belgium France Spain Republic of Korea Italy Israel Cyprus Malta Portugal Brunei Chile United Arab Emirates Estonia Greece Maldives Jordan Peru Cape Verde Thailand Tunisia Colombia Dominican Republic China Ecuador

Stage of adaptability 4 4 4 4 4 4 4 4 4 4 4

Country Poland Barbados Kuwait Lithuania Uruguay Croatia Latvia Costa Rica Oman Mauritius Saudi Arabia

Stage of adaptability 3 3 3 3 3 3 3 3 3 3 3

4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

Panama Malaysia Argentina Romania St. Vincent and the Grenadines Bulgaria Mexico Trinidad and Tobago Turkey Georgia Cuba Brazil Lebanon Albania Jamaica

3 3 3 3 3 3 3 3 3 3 3 3 3 3 3

4 4 2 2 2 2 2 2 2 2

Samoa – Honduras Gabon Guyana South Africa India Bangladesh Ghana Cambodia

3 – 1 1 1 1 1 1 1 1

2 2

Solomon Islands Senegal

1 1 (continued)

340

X. Chen and Q. Ding

Table 7.5 (continued) Country Russia Belize Iran El Salvador Algeria Vietnam Fiji Venezuela Vanuatu Ukraine Morocco Nicaragua Indonesia Namibia Philippines Egypt

Stage of adaptability 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Guatemala

2

Country Tanzania Madagascar Kenya Pakistan Mauritania Benin the Gambia Togo Liberia Cameroon Angola Mozambique Nigeria Guinea Cote d’Ivoire Democratic Republic of the Congo Guinea-Bissau

Stage of adaptability 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Note: 1 ¼ extremely low; 2 ¼ low; 3 ¼ medium; 4 ¼ high

from marine fisheries. Three countries with high vulnerability (Côte d’Ivoire, Nigeria, and Togo) belong to the first category, all of which are from Africa; for these countries, changes in the trade flow of aquatic products have a more significant effect on their food and nutrition security. Six countries with high vulnerability belong to the second category; among them, inland fishery production in Cambodia, the Democratic Republic of Congo, and Tanzania account for 70%, 97%, and 84% of their total production, respectively, and the aquaculture production in Bangladesh, Egypt, and Vietnam accounts for 49%, 72%, and 53% of their total production, respectively; for these countries, climate exposure indicators related to inland fisheries or the cultivation industry have greater effects on their national food security. Eighteen countries with high vulnerability belong to the third category, and reducing the vulnerability of marine fisheries under the effects of climate change is of great significance to the food and nutrition security of the local population. The vulnerability index provides useful information for the degree of adverse effects from climate change experienced by various countries, but the changing situation in the three elements that comprise vulnerability (exposure, sensitivity, and adaptability) vary significantly in various countries, especially countries with high vulnerability. Because different relevant measures need to be adopted to handle the different elements of vulnerability, understanding the differences in the elements that comprise the vulnerability index of different countries has important significance. For example, Hughes et al. (2012) carried out a food security vulnerability evaluation of coral reef fisheries. It was found in the study that there are generally two

7 Global Climate Change and Sustainable Development of Fisheries

341

common types of vulnerability: low-income countries with low adaptive capacity and middle-income countries with higher adaptive capacity and high sensitivity; and it was suggested that the evaluation results be utilized to formulate specific measures to improve the adaptability of low-income countries and reduce the sensitivity of middle-income countries. Research has indicated that countries with high vulnerability usually have high sensitivity and low adaptability. For such a situation, policy intervention measures should first reduce their sensitivity and then increase their adaptability (Hughes et al. 2012). Cape Verde, Fiji, the Maldives, Guinea-Bissau, Guyana, Indonesia, the Philippines, Samoa, and Vanuatu are highly dependent on marine fisheries to provide employment opportunities, which leads to these countries being highly sensitive to climate change. Alternative or supplementary livelihood activities, by transferring laborers engaged in fisheries to other industries, in turn, reduce the employment dependence on marine fisheries. In addition, based on resource availability and development conditions, flexible livelihood strategies that include a series of food production systems are adopted, such as combining fishing, aquaculture, and agriculture together or changing the seasonal model of fishing activities, thereby strengthening the ability to respond to climate change. High economic dependence has the greatest effect on the sensitivity of the Gambia, Guinea, Mauritania, and Senegal. The conversion of fisheries with a single fish species into fisheries with multiple fish species can reduce economic dependence, which can be realized by the following paths: encourage bringing ashore the discarded catches and bycatches from commercial fisheries, thereby providing sources of alternative fish species for local residents; and in the short run, change the target species to species that benefit from climate change. The high sensitivity of Liberia, Madagascar, Mozambique, the Solomon Islands, and Thailand is mainly due to their food dependence on marine fisheries. As the dependence of the cultivation industry on fishmeal (made by processing fishing species) decreases, the expansion of the cultivation industry can make a major contribution to food security under the backdrop of climate change. The development of the cultivation industry may be most effective in areas with medium to high levels of human capital and adaptive capacity, high domestic aquatic product demand or good aquatic product trade, a comparatively weak fishing industry, or dependence on the import of aquatic products.

7.3 7.3.1

International Action for the Sustainable Development of Fisheries—Blue Growth Summary of 2030 Agenda for Sustainable Development and Blue Growth

Until 2050, how to feed more than 9.7 billion people in the world has become a difficult problem to be solved in the context of climate change and intensifying

342

X. Chen and Q. Ding

competition for natural resources. In 2015, 193 UN member states adopted the 2030 Agenda for Sustainable Development (Agenda 2030) with 17 sustainable development goals. Among them, sustainable development goal 14, “conservation and sustainable use of oceans and marine resources for Sustainable Development”, has a clear link with fisheries. This means that fisheries will have to play a greater role in securing the supply of human animal protein. In 2013, the FAO launched the “blue growth” initiative, which is in line with green development and aims to ensure that the products and services provided by marine ecosystems are maximized while generating social and economic benefits, achieving the goal of sustainable development. The concept of “blue growth”, derived from the Rio G20 summit in 2012, emphasizes conservation and sustainable management and is premised on ensuring that aquatic ecosystems are healthier, which has become an essential guarantee of a sustainable economy.

7.3.2

International Action for Blue Growth

The “blue growth” initiative has attracted global attention and attention. The European Commission proposes to launch work on a comprehensive “blue growth” strategy aimed at promoting smart, sustainable and inclusive growth and employment in Europe while protecting biodiversity and the marine environment. The African Union Commission has developed the “2050 integrated ocean strategy for Africa”, which introduces the concept of blue growth and aims to develop the blue economy in a safe, environmentally sound, and sustainable manner. The “blue growth” initiative in the Asia-Pacific region aims to preserve or restore the potential of the oceans and promote sustainable approaches to ensuring economic growth. The Caribbean has strengthened the transition to a blue economy and promoted blue growth, aiming to grow the economy while making sustainable use of fisheries resources. In China, the 13th five-year Plan for National Fisheries Development (2016–2020) of the Ministry of Agriculture (issued in January 2017) proposed the concept of “innovative, coordinated, green, open and shared” development, with the goal of improving quality and increasing efficiency, reducing quantity and increasing income, developing in a green way and enriching fishermen, and with the direction of healthy cultivation, proper fishing, protection of resources and strengthening industries, it is very urgent to accelerate the transformation of the mode of fishery development, and it is important to take a path of modernization of fishery with Chinese characteristics with high-efficiency, safety, resource conservation, and environmental friendliness.

7 Global Climate Change and Sustainable Development of Fisheries

7.3.3

343

Case Analysis of Blue Growth

Blue growth is a model innovation on the basis of the traditional development and is built under the constraints of ecological environmental capacity and resource carrying capacity, eco-environmental protection as an important pillar of sustainable development of a new development model. The previous studies have shown that (Table 7.6; UNEP 2011), in 2005 global fishing in marine fisheries, with an estimated catch of 90 million tons (the floating range is 84–1000 million tons) per year, fishing rents (returned to the owners of fishery resources) of 450  108 USD per year would be available if blue growth were implemented, and the corresponding output value will reach 1010  108 USD annually (the floating range is 910  108– 1210  108 USD). The total fishing cost under blue growth is estimated to be 460  108 USD, while the current fishing cost is 900  108 USD. Assuming the ratio of capital input (normal profit), labor cost (wages) and total cost remains unchanged, the normal profit and wage income will reach 40  108USD and 178  108 USD, respectively. Under the blue growth model, the total value added of fisheries, or the economic contribution of fisheries to the human economy, is estimated to be 670  108 USD per year (resource rent, service pay, normal profit). This suggests that the blue growth model will add 500  108 USD per year to the current contribution of fisheries to human welfare. Therefore, the implementation of blue growth can not only reduce the cost of marine fisheries production, but also increase the production value and income of fisheries, and achieve sustainable development of resources.

7.4 7.4.1

Carbon Sink Fisheries Concept and Role of Carbon Sink Fisheries

According to the definitions of carbon sequestration and carbon source as well as the characteristics of carbon fixation by marine organisms, a carbon sink fishery refers to the process and mechanism of promoting the absorption of CO2 in water by aquatic organisms through fishery production activities and removing carbons from water through harvesting; it is also referred to as a “removable carbon sink.” Carbon sink Table 7.6 Comparison between green economy fishery and current fishery in 2005 (UNEP 2011) (Unit: billion USD)

Projects/industries Output value Fishing cost Non-fuel subsidy Resource Rent Salary Profits Total value added

Current fishery 85.0 90.0 21.0 26.0 35.0 8.0 17.0

Blue growth fishery 101.0 46.0 10.0 45.0 18.0 4.0 67.0

344

X. Chen and Q. Ding

fishery is a general term for fishery production activities that can fully unleash the function of carbon sequestration, directly or indirectly absorb and store CO2 in the water, reduce the concentration of carbon dioxide in the atmosphere, and then mitigate water acidity and climate warming. Therefore, all fishery production activities that do not require bait can facilitate biological carbon sequestration, which can also be referred to as carbon sink fisheries, such as algae farming, shellfish farming, filter-feeding fish farming, artificial reefs, breeding and release, capture fisheries, and so on. Carbon sink fisheries have the following roles: improve the ability of water to absorb atmospheric CO2, because aquatic organisms (plankton, algae) can absorb CO2 in the water, by capturing aquatic products, this carbon is thus removed from the water. Therefore, this carbon sequestration process and mechanism can improve the ability of water to absorb atmospheric carbon dioxide, thereby contributing to reducing carbon dioxide emissions.

7.4.2

Carbon Sequestration of Marine Fisheries

Biological carbon fixation is a safe, high-efficiency, and economically feasible carbon fixation path and carbon fixation process. In addition to terrestrial ecosystems, the carbon fixation of marine organisms has also attracted the world’s attention. Marine carbon not only directly affects the global carbon cycle, but it also absorbs 20–35% of the total amount of CO2 emitted by humans, which is approximately 2  109 t, effectively delaying the effect of greenhouse gas emissions on the global climate; the ocean is the largest long-term carbon sink body. According to the Blue Carbon report of the United Nations Environment Programme (Nellemann et al. 2009), marine organisms fix 55% of the global carbon. Marine plants (seagrass, seaweeds, mangroves, and so on) have extremely strong carbon fixation capacities and extremely high-efficiency. Although their biomass is only 0.05% of that of terrestrial plants, the two’s carbon storage is comparable. The carbon fixation of marine organisms constitutes a carbon capture and removal channel, enabling biological carbon to be stored long-term, up to thousands of years at maximum. Therefore, marine biological carbon is also referred to as “blue carbon” or “blue carbon sequestration.” Blue carbon sequestration is the center of productivity along the coastal zone and provides many benefits and services for humans (for example, as sources of food, livelihood, and social welfare), which is expected to exceed 25 trillion USD per year. The carbon sequestration of marine fisheries is one of the important components of “blue carbon sequestration” by marine organisms. Marine carbon sink fisheries are considered as having the most potential for amplifying carbon sequestration activities. Through the implementation of management measures such as conservation and enhancement, a new production model for healthy and sustainable carbon sink fisheries has been developed. China’s marine fisheries and aquaculture industry are expected to realize a blue carbon fixation volume of 4.6  108 t a1, which is

7 Global Climate Change and Sustainable Development of Fisheries

345

equivalent to an annual carbon emission reduction of 10% (Tang and Liu 2016). Moreover, carbon sink fisheries are concrete manifestations of sustainable development in the field of fisheries, which can better highlight the service functions of the ecosystem. The development of carbon sink fisheries has not only made a positive contribution to the mitigation of global climate change but has also had important roles in food security, the protection of water resources and biodiversity, and increasing employment and fishers’ income.

7.4.3

Estimation of Carbon Sequestration in China’s Freshwater Fisheries

Although the area of freshwater only accounts for 0.8% of the ocean area and 2% of the land area, it occupies an important position in the global carbon cycle. Bodies of freshwater can not only remove carbon through catches but can also deposit the carbon. In addition, part of the carbon can also be brought into the ocean through water currents. The annual carbon deposit volume of lakes can reach 25–42% of the total deposit volume of the oceans, and the carbon fixed in lakes rarely returns to the atmosphere (Wu et al. 2016). From 2010 to 2014, the carbon removal amounts of China’s freshwater aquaculture increased steadily year by year, i.e., 1.362 million, 1.405 million, 1.460 million, 1.530 million, and 1.645 million t, respectively, with an average annual carbon removal amount of 1.480 million tons. Among them, silver carp contributed the most to carbon removal, followed by bighead carp, and the sum of the two exceeded 65% of the total carbon removed by freshwater aquaculture in China (Wu et al. 2016). From 2010 to 2014, the amounts of carbon removed through China’s freshwater fishing were 293,000, 287,000, 296,000, 297,000, and 296,000 t, respectively, with an average annual carbon removal of 294,000 tons, and fish contributed the most to carbon removal, exceeding 75% of the total carbon removed through freshwater fishing in China (Wu et al. 2016). An insufficient understanding of the carbon sequestration function of freshwater fisheries is an important factor that restricts its development. China is rich in freshwater biological resources. Freshwater organisms will generate some carbon during the growth process, which exists in the water after the organisms die. Freshwater aquaculture and fishing are important components of carbon sequestration in freshwater fisheries. Through the analysis of the above statistical data, it is known that the carbon removal amount of China’s freshwater fisheries has maintained a stable trend in recent years, providing good conditions for the development of carbon sink fisheries (Wu et al. 2016).

346

X. Chen and Q. Ding

References Allison EH, Perry AL, Badjeck MC et al (2009) Vulnerability of national economies to the impacts of climate change on fisheries. Fish Fish 10(2):73–196 Barange M, Merino G, Blanchard JL et al (2014) Impacts of climate change on marine ecosystem production in societies dependent on fisheries. Nat Clim Chang 4(3):211–216 Ding Q (2017) Evaluation of sustainable use of global marine fishery resources based on catch statistics. Shanghai Ocean University, Shanghai. (in Chinese) FAO (2009) Climate change implications for fisheries and aquaculture- Overview of current scientific knowledge. FAO Fisheries and Aquaculture Technical Paper 530. Rome Hughes S, Yau A, Max L et al (2012) A framework to assess national level vulnerability from the perspective of food security: The case of coral reef fisheries. Environ Sci Policy 23:95–108 Monnereau I, Mahon R, McConney P, et al (2015) Vulnerability of the fisheries sector to climate change impacts in Small Island Developing States and the Wider Caribbean. Centre for Resource Management and Environmental Studies, The University of the West Indies, Cave Hill Campus, Barbados. CERMES Technical Report No 77. pp 1–81 Nellemann C, Corcoran E, Duarte CM, et al. (2009) Blue carbon: the role of healthy oceans in binding carbon. A Rapid Response Assessment. Nairobi, United Nations Environment Programme, and Arendal, Norway, GRID-Arendal Tang QS, Liu H (2016) Carbon sequestration in marine fisheries and its augmentation strategy. Engineering Science of China 3:68–73. (in Chinese) UNEP. Green Economy: Pathways to Sustainable Development and Poverty Eradication [M]. Nairobi Kenya UNEP, 2011 Wu B, Wang HH, Xi HB (2016) Estimation of carbon sink intensity of freshwater fishery in China. J Biol Safety 25(4):308–312. (in Chinese)

Chapter 8

Fishery Resource Management and Policy Formulation Xinjun Chen

Abstract As a typical shared resource, fishery resource has its special characteristics. Due to its sharing characteristics, overfishing is inevitable in the exploitation and utilization of fishery resources. Therefore, in this chapter, we will briefly introduce the general characteristics of shared resources, expound the causes of the overutilization of shared resources from the economic point of view, and then put forward the policy scheme of the optimal utilization of shared resources. According to the characteristics of fishery, the development stages and characteristics of fishery are divided, and the connotation, objectives, and principles of determining management objectives of fishery resources management are introduced, and the problems in the decision-making process of fishery resources management and the basis of policy-making. Based on a brief analysis of the general methods of natural resources management, the methods and measures of fishery resources management are put forward. With the decline of traditional economic fishery resources, new measures and methods of international fisheries management are proposed. Therefore, the development of International Fisheries Management System and management concept are also analyzed in this chapter, at the same time, the sources of uncertainty in the process of fishery management and the precautionary approach should be taken are put forward. In this chapter, five aspects are introduced: (1) the economic characteristics of shared resources; (2) the connotation and objective of fishery resources management; (3) the methods of fishery resources management; (4) the development and management idea of international fishery management system; and (5) uncertainty and precautionary approach. Keywords Fishery Resources · Shared resources · Management and policy

X. Chen (*) College of marine sciences, Shanghai Ocean University, Lingang New city, Shanghai, China e-mail: [email protected] © China Agriculture Press 2021 X. Chen (ed.), Fisheries Resources Economics, https://doi.org/10.1007/978-981-33-4328-3_8

347

348

8.1

X. Chen

Features and Management of Common Resources

8.1.1

Concept and Features of Common Resources

8.1.1.1

Concept of Common Resources

Common resources refer to resources that are available for the common use and consumption of companies and individuals with certain capabilities and interests (Qu 2011). Once natural resources exist by way of common resources, then each individual or each unit can use and consume such resources at the same time without being excluded. In real life, there are many forms of common resources, such as the sunlight that shines on the Earth; clean air; the natural environment and scenery; and so on. Undoubtedly, common resources are closely related to externality. For example, the water resources in a certain basin can be shared by a certain range of people, but the use of water resources by some people also excludes the simultaneous use of the water resources in that basin by some other people; power plants or chemical plants often discharge pollutants into water and the atmosphere, and their consumption of clean air and water as common property results in pollution that has negative effects on other members of society. In real life, common resources are often overutilized. For example, in the high seas, which are open to everyone, overfishing by humans has led to the exhaustion of some fish resources. As common resources, roads, ports, and natural scenic areas are overcrowded and very congested during festivals and holidays, the natural environment has become places for people to exhaust pollutants, and the accepted waste materials often exceed nature’s self-purification capacity, generating more serious environmental pollution.

8.1.1.2

Basic Features of Common Resources

Common resources have the following four basic features (Qu 2011).

Shareability of Resources Any company or individual with certain capabilities and willingness can use such resources without being restricted. For example, currently, there are still no strict owners of the fishery resources in international high seas, the natural resources on the Antarctic continent, and the resources in cosmic space; as long as there are capabilities and willingness, any country, organization, company, or individual can exploit and utilize these resources.

8 Fishery Resource Management and Policy Formulation

349

Indivisibility of Supply Some common resources cannot be divided for use by different companies or individuals due to technical reasons. For example, clean air cannot be divided for individual use. Even if some common resources can be technically divided, excessively high division costs or a reduction in the functions of the common resources after division thereby make the division of common resources economically infeasible. For example, if the environment and scenery are divided for different company or individuals, then their entertainment and viewing value will be reduced.

Externality Problems and Congestion in Utilization Because common resources are not owned by any company or individual, the shareability of resources make users incentivize the overutilization of resources. If the utilization of common resources exceeds the bearing capacity of the resources, there will be mutual interference and exclusion between the resource users, aggravating the other costs for members of society and forming external effects or externalities. Moreover, because the services that can be provided by common resources within a certain time are limited, in particular, some resources are absolutely limited in terms of total quantity due to their special natural endowment, the entry of too many resource users into the ranks of users inevitably causes congestion in the utilization of common resources and generates material and mental damage.

Necessity of Management Because the external effects from the overutilization of common resources by users in the utilization of common resources do not enter the decision-making models for companies and individuals, the exploitation and utilization of common resource have a tendency to exceed the socially optimal level. Therefore, if effective measures are not adopted for carrying out proper management, the tendency for excessive exploitation of common resources and utilization will become a reality and ultimately lead to the destruction of resources.

350

8.1.1.3

X. Chen

Basic Reasons for the Existence of Common Resources

1. From the perspective of social equity and justice, due to their own characteristics, some natural resources have been determined to only be able to exist by the way and state of common resources. Air, the natural environment, and water resources are vitally important to human survival. The monopoly or sole possession of them by any company or individual will violate the principles of equity and justice and damage social interests. Because every person has the right to live, freely breathe the air, bath in the sunlight, and appreciate the environment, these are generally accepted norms of civilized society. 2. From the economic perspective of resource utilization, some natural resources, such as the beautiful environment and scenery, have indivisibility in terms of use value. If they are divided and given to different companies and individuals, their value will be greatly discounted or even lost. Only by being exploited and utilized as a whole will they have extremely high value and generate economies of scale and returns to scale. Some natural resources, such as marine fishery resources, groundwater resources, and underground petroleum resources, have great fluidity; it is difficult to fix them to give to specific companies and individuals, and arrangements for exclusion or sole possession require higher costs. That these resources exist by way of common resources undoubtedly has economic comparative advantages. 3. From the technological perspective of resource exclusion or sole possession, some natural resources involve technological difficulties. It is still impossible or there is still no way to divide certain energies, materials, and environmental systems in nature, such as the atmosphere, oceans, and cosmic space, for incorporation into specific companies or individuals, and they can only be provided to common ownership and use by all of society or the entire human race, leading these resources to be inevitably in a state of common use. 4. From the institutional arrangements for resource utilization, the institutional “vacuum” caused by the contradictions existing in formal institutional arrangements or informal institutional arrangements, such as traditional habits, will also make the utilization of natural resources exist by way of sharing. Due to the limitation of objective conditions and the limitation of people’s cognitive ability, institutional arrangements for natural resource utilization cannot be perfect. Some points of mutual contradiction will inevitably exist. The institutional “vacuum” caused by unclear rights and responsibilities, the absence of property rights subjects, and so on puts these resources in a state of common resources, and the relevant economic parties will inevitably exploit and utilize these resources in a “common resource mode” in order to seek the maximization of their own interests. In addition, in some countries and regions, although the ownership of property rights for some natural resources are defined by formal institutional arrangements such as laws and regulations, informal institutional arrangements such as customs, ethics, and morals still play an extremely large role in the institutional arrangements for natural resources, and these natural resources are

8 Fishery Resource Management and Policy Formulation

351

customarily recognized as common resources, making it difficult to fix and standardize property rights arrangements to specific companies and individuals and thus forcing the exploitation and utilization of these resources to be in a state of common ownership and use to a considerable extent.

8.1.2

Economic Analysis of the Optimal Utilization of Common Resources

8.1.2.1

Issues in the Utilization of Common Resources and its Economic Analysis

Although the reasons for the existence of common resources are different and the ways people exploit and utilize common resources are also different, there is a common point; that is, because the private costs that may exist in common resource exploitation and utilization are inconsistent with the social costs, individual decisions in common resource exploitation and utilization often deviate from socially optimal decisions, forming the “tragedy of the commons” and “pollution” issue. Because common resources are not owned by anyone but are owned in common, people have incentives to overutilize such resources. When such resources are overutilized, the “tragedy of the commons,” as described by the well-known biologist Garrett Hardin, will be generated. Imagine a ranch that is open to all people. Each grazier always tries to graze as many cattle as possible on public land. This behavior has generated good results for many centuries, but wars, poaching, and disease have caused the number of cattle to be far lower than the supporting capacity of the land. Therefore, retribution will come. Each grazier seeks to maximize his or her personal interests, and his or her experience always guides him or her to increase the number of livestock. However, this strategy is practiced by every reasonable grazier who shares the public land. Livestock increases without restriction on public land, and tragedy occurs: the freedom to graze on public land will bring damage to all people. The economic reasons for the formation of the “tragedy of the commons” are as follows. Suppose a segment of pasture in a village is publicly owned by the villagers. The villagers graze cattle on the public land, and entry to the pasture is free and unrestricted. Suppose RMB a must be spent to buy one cattle; the amount of much milk this cow can produce depends on how many other cows are grazing on this piece of public land. If there are c cows grazing on this piece of public land and f(c) represents the value of the milk produced, then the value of the milk produced by each cow is f (c)/c. To ensure that the total wealth of cattle raised in this village reaches the maximum value, that is, max[f(c)
ac], the optimal number of grazing cows can be obtained if the marginal benefit of the cow is equal to its marginal cost, that is:

352

X. Chen

Revenue or cost

Marginal social cost Private cost

Demand

Yield

O

F*

Fc

Fig. 8.1 Economic analysis of the “tragedy of commons” (Qu 2011). When a resource is a common resource, this resource will be utilized until the point FC; at this time, the private marginal cost is equal to the marginal benefit. This level exceeds the socially optimal level F*, which is determined by the marginal social cost and marginal benefit of utilizing the resource

Mf ðc Þ ¼ a If the marginal benefit of one cow is greater than a, then it is advantageous to increase the number of cows grazing on public land; if the marginal benefit of a cow is less than a, then it is profitable to decrease the number of grazing cows. On public pasture, because every villager has the opportunity to choose whether or not to graze cows, as long as the output of one cow is greater than the cost of this cow, it is advantageous to graze this cow. Suppose that the number of cows grazing is now c and the average output value of each cow is f(c)/c. When a villager adds one cow, the total output value changes to f(c + 1), and the total number of cows is c + 1. At this time, the average value of each cow is f(c + 1)/c + 1. He or she will be bound to compare the revenue of this cow with the cost of this cow; if the former is greater than the latter, that is, f(c + 1)/c + 1 > a, then it is profitable to add this cow. Therefore, the villagers will continuously increase the number of grazing cows until the profit is zero. When an individual decides whether or not to increase the number of grazing cows, he or she only pays attention to whether or not he can personally obtain profits, and he only compares the value of this cow with the cost of the cow. However, such calculations often neglect this fact, that is, the cow he or she adds will cause the milk output of all other cows to decrease. He or she neglects the social cost of this type of behavior in his or her increasing the number of grazing cows (Fig. 8.1). . Suppose that, relative to social demands, the milk production of the cows in the village is sufficiently small; therefore, the graziers regard the price of milk as a given. Assume further that someone controls the number of graziers who enter the public land; then, the optimal feeding level F* of the cows is determined by the point at which the marginal benefit from raising cows is equal to the marginal cost. The marginal benefit is the price obtained from the demand curve.

8 Fishery Resource Management and Policy Formulation

353

Because individuals do not consider the social cost of their behavior when making decisions, each villager will increase the number of grazing cows until there is not any profit. When the number of grazing cows is only F*, the revenue from raising cows is greater than the marginal private cost; increasing the number of grazing cows can result in more profits, until this price is equal to the marginal private cost, that is, Fc in Fig. 8.1, and the pasture is overgrazed. By extending the economic analysis of the “tragedy of the commons” to the general public, it can be seen that the nature of common resources will attract more investment into this production field after exploitation and utilization levels have reached social benefit maximization. Because these newly entered investments can still generate profits but do not bear social responsibility for the increase in cost, the common resources are in danger of being overutilized.

8.1.2.2

Policy Schemes for the Optimal Utilization of Common Resources

Due to the contradiction between private costs and social costs in the utilization of common resources determined by the traits of the common resources, which has led the privately optimal level of utilization of common resources to be inconsistent with that of the socially optimal level, privately optimal decisions often deviate from socially optimal decisions, and there are incentives for common resources to be overutilized. The key to solving this problem is to internalize externalities. It is generally believed that there is nothing else but two solution paths: private transactions and government regulation (Qu 2011).

Private Transactions Suppose the government does not intervene in the utilization of common resources. The research by Ronald Coase through the social cost issue shows that voluntary negotiations carried out between relevant economic parties on the basis of clarifying property rights can improve the utilization efficiency of common resources. The Coase theorem is described using Fig. 8.2. On the basis of clear property rights, as long as the transaction cost is comparatively low and the transaction is profitable, no matter which economic party possesses the property rights, there is a natural tendency to move to the socially optimal point. In Fig. 8.2, MNPB represents the marginal net private benefits, and MEC represents the marginal external cost. Obviously, for enterprises or individuals with externalities, such as polluters, when the level of economic activity is at Q, their benefits reach maximization; however, for society, the socially optimal level of activity is at Q*, and the market solution and social optimum are inconsistent. First, suppose that the victim possesses property rights. This means that the victim has the right to not be polluted but that the polluter has no right to pollute. The starting point for negotiations between the two parties is the origin because the

354

X. Chen

Cost or benefit MEC e a f MNPB

b

c

O

d

g

Q*

h

Q Level of economic activity

Fig. 8.2 Graphical explanation of the Coase theorem (Qu 2011)

victim possesses property rights and hopes there is no pollution at all. Suppose both parties move to point d; the polluter will obtain the net income of Oabd, and the victim will pay the cost of Ocd. Because Oabd is greater than Ocd, the polluter can pay the victim a fee that is greater than Ocd but less than Oabd to compensate for the victim’s loss, and the polluter and the victim can both benefit. In other words, moving toward point d is Pareto improvement. Continue to move right until reaching Q*. If one continues to move right after reaching Q*, because the polluter’s income is less than the victim’s loss, the polluter cannot continue to provide compensation to the victim, and the basis for negotiation thus disappears. Therefore, if the victim possesses property rights, there is a natural tendency to move toward Q* through negotiations. If the polluter possesses property rights, that is, if the polluter has the right to pollute, the starting point of the negotiation is at Q because at this point, the polluter can maximally utilize the property rights to make his or her own revenue reach the maximum. Suppose both parties move toward point h; because the reduction in the victim’s loss in moving toward h will be greater than the reduction in the polluter’s revenue, the victim can give the polluter a compensation or bribe that is less than hfeQ but greater than hgQ, to make the polluter reduce production and pollution. Similarly, moving to point h is Pareto improvement. Both parties continue to negotiate until Q*. Therefore, no matter which economic party possesses property rights, as long as the transaction cost is comparatively low and the transaction is profitable, there is a natural tendency to move toward the socially optimal point. As long as the victim or

8 Fishery Resource Management and Policy Formulation

355

the benefactor can be made to freely negotiate, the market will naturally reach the socially optimal level.

Government Regulation When using the private transaction method to solve the problem of common resource utilization, an extremely important assumption is implied; that is, property rights must be clearly defined, and transaction costs can be ignored. Market failure may exist, providing conditions for the government to play a role in the regulation of common resources. Through the government’s regulation of common resource utilization, private costs are kept consistent with social costs as much as possible to internalize externalities. In the management of common resources, commonly used means of government regulation include direct control, the collection of an emissions tax, or the implementation of a license system. Direct Control Direct control is direct intervention and control carried out by the government on the external effects in common resource utilization, which determines the intensity and quantity of common resource utilization and manages common resources by adopting methods such as quotas, standards, and regulations. In real life, for example, limiting and stipulating the season, time, and facilities used for fishing fishery resources and limiting the types of waste materials discharged and the quantities of discharge are forms of direct control. Because direct control stipulates a standard of control, if the utilization of common resources by enterprises or individuals exceeds this standard, they will face economic punishment or even criminal punishment; therefore, direct control can increase the cost of enterprises or individuals in utilizing common resources to a certain extent. Therefore, it is conducive to realizing the government management of common resources. The action mechanism of direct control by the government is now analyzed using the government’s determination of pollutant discharge standards as an example. In Fig. 8.3, MSC is the marginal social cost, MPC is the marginal private cost, and MAC is the marginal cost of pollution reduction. For enterprises or individuals, the determination of their pollution level is decided by the MPC and the MAC, which is point P in Fig. 8.3. At this point, equilibrium in marginal private costs and benefits is realized; for society, the goal is for the sum of the cost of pollution and the cost of pollution reduction to reach a minimum, which is decided by the MSC and the MAC, i.e., point E in the figure. Suppose the government stipulates the standard for enterprises or individuals to discharge pollutants according to the MSC and the MAC curves; that is, the quantities of pollutants discharged may not exceed certain units, which are determined in Fig. 8.3 by the CBE lines. As long as the amount of pollutants discharged

356

X. Chen Marginal costs and benefits

Government control standard

MSC

S

E

MPC

C P B O

MAC Pollution

Fig. 8.3 Government control of the standard of common resource utilization (Qu 2011). Point E is the equilibrium point of pollutant discharge. When the level of discharge by enterprises or individuals exceeds the government-stipulated control standard, due to facing possible punishment that makes the private marginal cost greater than the marginal cost of pollution reduction, enterprises or individuals will reduce discharge levels

by the economic parties does not exceed this standard, they can do as they like. If this standard is exceeded, the enterprise or individual will be subjected to corresponding punishment such as fines; in this way, the private marginal cost curve will be OBES. Because the marginal cost that has to be borne by an enterprise or individual exceeds the marginal cost of eliminating externalities after exceeding the control standard stipulated by the government, the enterprise or individual will definitely select the equilibrium point E, thereby realizing the government-stipulated policy goals. However, in real life, it is very difficult for direct control by the government to facilitate attaining the expected goals, for the following reasons: 1. Because difficulties exist in obtaining relevant data, it is very difficult for the government to determine a reasonable control standard according to a cost-benefit analysis; therefore, the degree of reasonableness of the determined control standard must inevitably be greatly affected. 2. Due to difficulties in supervision and measurement, there is a greater degree of difficulty in executing control standards. For the strict execution of a control standard, it is necessary to accurately supervise and measure the relevant behaviors of enterprises or individuals. In practical work, technical difficulties in this area will inevitably be encountered, and the relevant parties have incentives to evade supervision, which makes it difficult to effectively execute control standards thus causing the actual pollution level to exceed the control standard.

8 Fishery Resource Management and Policy Formulation

357

3. Under direct control, because all economic parties face the same standard, those with high efficiency cannot substitute for those with low efficiency, thereby bringing certain losses in efficiency. Taxes and Fees The purpose of taxes and fees is to collect a certain amount of money from the users of common resources according to their resource use. The standard is equal to the increased social cost of resource users, thereby making users feel that when their use of common resources exceeds a certain level, it is no longer profitable. Through the action of taxes and fees, the externalities are internalized, thereby regulating private costs to the level of social costs. The action mechanism of taxes and fees is explained now using Fig. 8.4. By collecting taxes and fees from the users of common resources according to certain standards, the cost of resource use increases, and the level of their resource use reduces, thereby realizing the government’s regulation goal of the effective utilization of common resources. In Fig. 8.4, MEC is the marginal external cost, and MAC is the marginal cost for reducing external effects. After the external effects exceed a certain threshold (the self-purification capacity of the environment), the MEC is attained, presenting a progressively increasing trend. As the eliminated externalities increase, the MAC also progressively increases accordingly. If the government levies a tax T on the external effects that emerge, then users will automatically control their externality level to level L. If the external effect exceeds L, the user has to pay more taxes than the cost spent to reduce the externality; if it is lower than L, the cost of reducing the externality exceeds the tax, and, thus, not economical. Therefore, as long as the MEC function and the marginal cost function of external effects reduction can be Tax or fees

MAC

MEC

T

O

L

Fig. 8.4 Action mechanism of taxes and fees (Qu 2011)

Externalities

358

X. Chen

accurately calculated, the tax T can be applied at the precise level where the MEC and the marginal pollution reduction cost are equal, making resource utilization reach the optimum level. Unlike the direct control method of increasing costs, because the government can seek welfare for society after receiving taxes and fees, for the whole society, the total cost has not increased. However, under the conditions of direct control by the government, the increased costs for the users of common resources have to apply to certain resources, referred to as real resource costs (RRCs). Under the conditions of taxes and fees, the increased total cost is transferred from the hands of people in one part of society to the hands of people in another part of society; therefore, it is a transfer cost. This part of the cost is a cost to the users of common resources, but it is not a real cost to society as a whole. Because taxes and fees harm the interests of resource users, taxes and fees are not necessarily welcomed by resource users. Transferable License System Another commonly used means of government regulation is to implement a transferable license system. A transferable license system consists of the following basic elements: 1. License holders can use a specified amount of specific common resources; 2. The total amount of resources for use specified in the license is equal to the socially effective level; and 3. Licenses can be freely exchanged between resource users. In general, the operating procedures for a transferable license system are as follows. First, the government’s resource management agency determines the optimal use level for specific common resources, prints resource use licenses consistent with the socially effective levels, and then auctions the licenses to resource users or assigns them to resource users for free. Each resource user can only use the amount of resources consistent with the license he or she purchases; otherwise, he or she will be severely punished. The pollution problem is now used as an example to explain the action mechanism of a transferable license system with the help of Fig. 8.5. In Fig. 8.5, MAC1 and MAC2 are the marginal costs of pollution reduction for two enterprises. Because Enterprise 1 faces a relatively high marginal cost of pollution reduction, it is willing to pay a certain fee, such as b, to purchase a pollutant discharge license, but to Enterprise 2, the value of this license is only c; therefore, Enterprise 2 will use a price between c and b to sell the license to Enterprise 1. If there are enough enterprises and licenses, a competitive license market will play a role. When the market is at equilibrium, the price of licenses will be equal to the marginal pollution reduction cost for all enterprises. The transferable license system has generated an external market. Because this market combines direct control together with certain advantages under the taxes and fees system, it has a certain attractiveness. If a transferable license system can play a role effectively, it has the following advantages: (1) the auctioning of licenses can

8 Fishery Resource Management and Policy Formulation

359

MAC2 MAC1 Marginal Cost

b

a c

O Pollution level

Fig. 8.5 Action mechanism of transferable licenses (Qu 2011). Because Enterprise 1 faces a relatively high marginal cost of pollution reduction, it is willing to pay a certain fee, such as b, to purchase a pollutant discharge license, but to Enterprise 2, the value of this license is only c; therefore, Enterprise 2 will use a price between c and b to sell the license to Enterprise 1

give full play to the role of the market mechanism, making the licenses reach the hands of those with the highest production efficiency and improving the social efficiency of resource utilization; (2) free trade between users of common resources can promote continuous improvement in the level of resource utilization, encourage technological progress, and realize the transfer of the utilization of common resources from those with lower production efficiency to innovators with higher production efficiency; and (3) resource management departments can obtain a portion of income from this to protect and improve resource productivity. However, license systems also have certain shortcomings. If the government auctions the licenses and obtains income through the auctions, this is similar to taxes and fees, and resource users are not necessarily satisfied with this practice. If the licenses are assigned to resource users for free according to a history of resource use, although the resource users can trade freely until the market is at equilibrium, new resource users who want to enter the ranks of resource users must purchase licenses from existing resource users, and the competition between new resource users will increase the market price of the licenses. Therefore, for new entrants, this is no different from taxes and fees.

360

X. Chen

8.1.3

Economic Analysis of the Optimal Utilization of Common Pool Resources

8.1.3.1

Policy Scheme for the Optimal Utilization of Common Pool Resources—Collective Action Theory of Spontaneous Organization and Governance

The winner of the Nobel Prize for Economics in 2009, Elinor Ostrom, focused on small-scale common pool resources. On the basis of a large number of empirical case studies, she believed that private ownership and government regulation were not the only means of governance of common pool resources, thereby developing the collective action theory of spontaneous organization and governance, which opened up a new path for solving the tragedy of the commons problem (Qu 2011). She believed that long-term, effective spontaneous organization and governance of small-scale common pool resources must abide by the following eight principles.

Clearly Defined Boundaries The boundaries of the common pool resources must be clearly stipulated, and the individuals or families who have the right to extract certain resource units from the common pool resources must also be clearly stipulated.

Occupancy and Supply Rules Must Be Consistent with Local Conditions The occupancy rules that stipulate the time, place, technology, and/or number of resource units for occupation must be consistent with local conditions and the rules for the supply of required labor, materials, and/or funds.

Arrangements for Collective Choices The vast majority of individuals affected by operating rules should be able to participate in the modification of the operating rules.

Supervision Supervisors must actively check the status of common pool resources and occupant behavior, or people who are responsible for the occupants, or the occupants themselves.

8 Fishery Resource Management and Policy Formulation

361

Graded Sanctions Occupants who violate the operating rules are very likely to be subjected to graded sanctions by other occupants, relevant officials, or both (the degree of sanctions depends on the content and severity of the violation).

Conflict Resolution Mechanism Occupants and their officials can quickly resolve conflicts between occupants or between occupants and officials through low-cost local public forums.

Minimum Recognition of Organizational Rights The occupants’ right to design their own system is not challenged by the authority of an external government.

Nested Enterprises In a multilevel nested enterprise, occupancy, supply, supervision, compulsory enforcement, conflict resolution, and governance activities are organized. She believed these principles could affect incentives, enable occupants to voluntarily comply with the operating rules designed in these systems, supervise their status of compliance with the rules, and maintain the institutional arrangements for common pool resources from generation to generation.

8.1.3.2

Successful Cases in the Spontaneous Organization and Governance of Small-Scale Common Pool Resources

We refer to the scheme designed by the Alanya people of Turkey to solve the spontaneous organization and governance of small-scale common pool resources to explain the spontaneous organization and governance of small-scale common pool resources (Qu 2011). The inshore fishing grounds of Alanya are fishing grounds with a relatively small scope for fishing. Most of the approximately 100 local fishermen use a variety of netting gear to catch fish in small vessel with two or three people. Half of the fishers belong to a local production cooperative. Prior to the 1970s, it was a “dark age” for Alanya. At that time, the economic viability of the fishing grounds was subjected to two threats: first, the unrestricted use of the fishing grounds led to hatred among the fishers and violent conflicts; second, the competition that started between fishers for better fishing spots not only increased production costs but also increased the uncertainty of the potential catch of any fishing vessel.

362

X. Chen

In the early 1970s, members of the local production cooperative began experimenting with an elaborate system for assigning fishing spots. After more than 10 years of making improvements from repeated experiments, the fishers there implemented the following rules: • In September of each year, a registration form for qualified fishers is prepared that includes all licensed fishermen in Alanya, regardless of whether they are members of the production cooperative. • Name and list all possible fishing spots in the waters usually fished by the fishers of Alanya. These spots all have considerable intervals. This way, the net at one spot will not block the fish that should be close to another spot. • The division and corresponding arrangement of these named fishing spots are effective from September of each year to May of the next year. • In September of each year, qualified fishers are assigned to each named fishing spot through the drawing of lots. • From September to January of the next year, each fisher moves one spot eastward every day; after January, the fishers move one spot westward every day. The migration from east to west from September to January and the migration from west to east from January to May allow fishers equal opportunities to utilize the resources of the fishing grounds. This system has successfully separated the fishers in the fishing grounds; therefore, they each have enough space for activities to optimize the fishing capacity of each spot. In addition, all fishing vessels have equal opportunities to fish at the best spots. Resources will not be wasted because fishing vessels cannot find fishing spots or because of fighting caused by contesting for a certain spot, and no overinvestment has occurred. The fishing spot table is supported by every fisher. At the time of the annual lot drawing, the fishing spot table is kept by the mayor and the local military police. However, the fishers themselves are responsible for the supervision and execution of this system. The supervision mode is a byproduct of the migration fishing system. When a certain fisher is assigned to a fishing spot with the highest fishing yield on a certain day, the fisher will certainly fully utilize this opportunity, and other fishers will certainly be able to expect that this fisher will fully utilize this opportunity. Therefore, if a certain fisher wants to poach this fishing spot, the fisher who possesses the fishing rights at that fishing spot will discover this behavior and will inevitably defend his or her own rights by certain means. The act of defending one’s own rights will inevitably be supported by the other fishers because the other fishers all hope that when they are assigned to the fishing spot with the highest fishing yield on a certain day, their rights will not be illegally impeded. This type of institutional arrangement is not private ownership, but the right to use the fishing spots and the responsibility of respecting these rights are very clearly defined. This type of system is also not government regulation, but the local government accepts the signed agreement every year, thereby enhancing the legality of the cooperative manager’s behavior. The practical work of monitoring and enforcing the rules is borne by the fishers themselves.

8 Fishery Resource Management and Policy Formulation

363

Unless the government can appoint full-time staff to work in Alanya in the long run, it is otherwise impossible for the government to formulate such an institutional arrangement. Fishing spots with different economic value usually occur in inshore fishing grounds, but if there is not ample practical experience, it is impossible to list these spots in a table. Only local fishers can provide long-term, temporal, and spatial information on offshore fishing grounds accumulated during fishing activities over a long period of time; only then can all the fishable spots be named and listed. Therefore, Alanya provides a successful case in the spontaneous organization and governance of small-scale common pool resources.

8.2

Fishery Development Stages and their Teatures

According to the degree of fishery resource exploitation and utilization, a fishery can usually be divided into several development periods. In different development periods, the status of fishery resources, fishery management strategies, and management measures are different. Scholars divide fishery development stages differently, and their features are also different (Chen 2014).

8.2.1

Fishery Development Stages Divided into Six Phases

Based on the utilization of fishery resources, the development of a typical fishery can be divided into six phases (Chen 2014): 1. Predevelopment phase—In this period, there is little fishing effort, yield is low, the fishery has not yet formed, and the resources are in the original state of no exploitation; 2. Growth phase—In this period, the fishing effort increases very quickly, the catch per unit effort (CPUE) is high, the fishery profit is large, and the fishers earn a large income. The quantity of resources is abundant, and there is no sign of a decrease; 3. Full exploitation phase—In this period, the resources are clearly reduced, but the fishing effort continues to increase. The total catch can still be maintained at a certain level due to the increase in fishing effort, the CPUE is reduced, and the resources have been fully utilized; 4. Overexploitation phase—If the fishing effort is not strictly controlled in the full exploitation phase, the fishing effort will be out of control, increasing very rapidly and resulting in the overexploitation of resources, a substantial decrease in the quantity of resources, along with decreases in the total catch and the CPUE, poor economic benefits for the fishery, and changes in the biological features of the population;

364

X. Chen

5. Collapse phase—The features of resource collapse are a low resource quantity level, a reduction in the average amount of recruitment, a low yield, and the loss of the fishery. The resource collapse phase continues for a long time; and. 6. Recovery phase—In the recovery phase, the degree of resource recovery is related to fishery management, environmental conditions, and so on. The development of a fishery resource, from exploitation and utilization to resource collapse, is mostly caused by management errors. Environmental factors and economic characteristics increase the degree of influence under the backdrop of management errors. In special cases, this effect is very large. During the fishery predevelopment phase, if the economic benefits are poor, the fishery cannot develop, and the yield is always very low. If the decision-making regarding the fishery is correct, management is good, and the environmental and economic characteristics are comparatively stable, it is possible for the fishery to maintain operations in a suitable cycle. According to domestic and foreign experience, starting to manage fisheries from the growth period (Phase 2) allows for easier management, and the effects are good. It is very difficult to manage fisheries during the fishing exploitation period (Phase 4) because when fisheries reach this development stage, there is excessive fishing effort, the return on capital for fishing vessels takes a very long time, the reduction in fishing vessels involves many social problems, it is difficult for most countries to implement, and the management effect is very poor.

8.2.2

Fishery Development Stages Divided into Four Phases

Based on the fishery development condition, the fishery development process is also divided into four phases, that is, the initial development phase (insufficient development), the development phase (accelerated development), the overdevelopment phase (overexploitation), and the management phase (fishery management). The following provides the features of each stage (Chen 2014): 1. Insufficient development stage—This is the first stage of insufficient utilization in the fishing of fishery resources. In this stage, the fishery resources are either not caught or are only being caught by a traditional small-scale fishery with a low fishing capacity. At this point, the catch is much less than the potential catchable volume, and because of the limited fishing technology, the CPUE is very low. 2. Accelerated development stage—In this stage, fishery development is rapid. The total fishing effort and the total catch grow rapidly, and the CPUE also grows quickly at the beginning but starts to decrease near the middle period of this stage; the amount of resources in this stage quickly decreases with the rapid development of the fishery. Generally, the outlook for a fishery in this stage is very optimistic, as it is the most prosperous period. However, if such optimism is blind and the fishery continues to be developed, then the fishery will enter the overexploitation stage.

8 Fishery Resource Management and Policy Formulation

365

Resource amount Total effort

Total catch

CPUE CPUE/Resource amount

Insufficient exploitation Growth Overdevelopment

Management

Fig. 8.6 Schematic diagram of the features at each stage of development for a typical fishery

3. Overexploitation stage—In this stage, the feature that is manifested is overfishing. There are too many fishing vessels; the fishery resources are scarce; the catch rate is low; the CPUE is clearly decreased and even decreases to the lowest point; the total fishing effort continues to increase at the start of this stage and remains at its highest level throughout the entire development process; and the total catch presents a decreasing trend and remains at a low level. People then begin to reflect on the development of the fishery, imparting a high degree of importance on fishery management. 4. Fishery management stage—In this final stage, the amount of resources and the CPUE gradually increase and finally tend to stabilize. Moreover, after the total yield decreases sharply, due to strengthened management, the total fishing effort decreases and tends toward a certain level. After the total catch decreases, due to strengthened management, the catch increases to a higher level and tends toward stability. At present, only a few fisheries have reached this stage. Figure 8.6 characterizes the changing trends in the total catch, CPUE, total fishing effort, and the resource amount in various fishery development stages (Chen 2014). Generally, the general changing trend for the CPUE should be consistent with that of the resource amount. Because CPUE is a resource density indicator, CPUE and resource amount are closely related. However, it can be seen from Fig. 8.6 that at the initial stage of fishery development, the CPUE is very low because at this time, the fishers still have not determined the best fishing gear, fishing method, and fishing grounds; that is, at this time, the resources are very abundant, and the CPUE is

366

X. Chen

always low. We can also see from Fig. 8.6 that in order to ensure higher benefits for fisheries, fishery management, such as the formulation of management measures, should begin in the middle period of the high-speed development stage and should not wait to be carried out until overfishing. Furthermore, fishery management and fishery production departments should put forward specific questions and requirements to fishery resource experts according to the features of each stage of fishery development in order to facilitate obtaining scientific suggestions for solving the problems that have appeared.

8.3

Connotation and Goals for Fishery Resource Management

The formation of the theories and methods for fishery resource management has undergone a long historical process, gradually forming in the development of human society and economy and fishery resource exploitation and utilization, and it continues to develop with the advancement of science and technology and the deepening of human understanding of the relationship between people and fishery resources. In the formation process of the concept of fishery management, the functions, modes, and contents of fishery resource management have been continuously strengthened, and a series of standardized systems and measures have gradually been formed that effectively ensure the realization of the goals of fishery resource management (Chen 2014).

8.3.1

Connotation of Fishery Resource Management

Fishery resource management refers to economic, social, legal, and other management means that are adopted in order to balance the relationship between the supply of fishery resources and human demand according to the internal relations between a fishery’s natural ecological environmental system and the social and economic systems and to standardize people’s behavior regarding fishery resource exploitation and utilization with the goal of the sustainable use of fishery resources and with the principle of maximum social, economic, and ecological benefits, thereby realizing the optimal deployment of fishery resources in different periods. The formation of fishery resource management has undergone a long evolutionary process. Prior to the nineteenth century, the viewpoint that marine fishes were “inexhaustible for fishing and undepletable for use” was very popular. The Industrial Revolution of the nineteenth century brought rapid social, economic, scientific, and technological development. The invention and widespread use of the steam engine continuously expanded the space for human activities, and the fishery resources in the ocean have been continuously exploited. The relationship between the vastness

8 Fishery Resource Management and Policy Formulation

367

of the ocean and the level of human technology is relative. Advancements in science and technology have continuously improved the ability of humans to exploit and utilize resources. At the end of the nineteenth century, in the North Sea of Europe, where fishery resources were extremely abundant, the body of the fish being caught was getting smaller and smaller, the catch per unit fishing vessel continued to decrease, and overfishing appeared. Overfishing has gradually made people cognizant of the importance of fishery management. In 1953, Gordon introduced, for the first time, the concept of economic benefits and costs in fishery resource management, founded the economic theory of open or public fisheries, and proposed the concept of maximum economic yield (MEY). Subsequently, many scholars, such as Hannesson, Anderson, Clark, and Cunningham, have proposed theories and research methods for fishery resource management from economic and social perspectives combined with the biological characteristics of fishery resources, which provided a policy and theoretical basis for the sustainable use of fishery resources.

8.3.2

Goals of Fishery Resource Management

The formation and evolution of fishery management goals are related to human understanding of the law of fishery resource changes, biological characteristics, the attributes of fishery resource goods, and the level of socioeconomic development and continue to improve and be refined as the awareness increases. The goal of fishery management refers to obtaining the expected economic, social, and ecological benefits by controlling various factors of fishery resources. The attainment of such benefits occurs through the protection of fishery resources to the level required for sustainable numbers, expressed in the form of food, value, employment, and the income of those engaged in fisheries, to reach equilibrium between input and output. Because society is developing and social needs and values are continuously changing, changes in specific management goals will occur even in the same country or the same region at any time (Chen 2014). For example, for shrimp fisheries, due to the different social development and social situations in different countries, the social benefits expected to be obtained from shrimp resources are also different, and the management goals also differ (Chen 2014). The management goal of US shrimp fisheries is to consider the supply of aquatic products and leisure and entertainment on the basis of the maximum sustainable yield (MSY) to satisfy the maximum welfare of the general public. The management goals of Mexican shrimp fisheries are maximum yield and maximum employment. The management goal of Australian shrimp fisheries is to maintain the MSY with appropriate attention to the economic vitality and economic profits of fishing enterprises. In the aforementioned examples, some are contradictory. For example, the management requirements of shrimp fishery management in Mexico are the MSY and maximum employment; however, these two cannot be

368

X. Chen

attained at the same time. If one wants to obtain maximum employment opportunities, the catch yield will inevitably be affected. Therefore, the goals of fishery resource management involve numerous complicated biological, economic, social, political, and international relations factors. Different countries often choose different management goals at different times according to their national conditions and fishery resource features. With the particularity of various fishery resources themselves and the differences in the national conditions and the state of economic development between developed countries and developing countries, it is not very realistic to establish generally applicable fishery management goals. However, as far as a specific fishery is concerned, it is feasible to determine reasonable management goals for a certain period and generate gradual improvement. Generally, the goals of fishery resource management can be roughly divided into ecological goals, economic goals, social goals, and sustainable development goals (Chen 2014).

8.3.2.1

Ecological Goal—MSY

The theory of MSY is based on the biological characteristics of fishery resources, and the goal is maximum sustainable catch. This is the traditional fishery management goal used at home and abroad, and it is also the basic theory for major fishery countries to establish fishery management goals. This goal is meaningful as a general guide for fisheries and can effectively prevent recruitment overfishing and prevent population decline. The shortcoming of this theory is that it only considers the relationship between the biological characteristics of fishery resources and the degree of fishing exploitation and does not consider the economic relationship between fishing costs and fishery benefits as well as the social benefits of fishery behavior.

8.3.2.2

Economic Goal—MEY

To investigate the effects of a fishery and measure its contribution to society, one must at least consider the amount of the catch and its value as well as the total consumption paid to obtain this catch and consider both aspects of input and output, the size of the value difference between the two and profit and loss. Fishery profits are one of the best criteria for measuring fishery achievements. Therefore, it is more reasonable to use the maximum economic benefit as the fishery management goal. In 1967, the Food and Agriculture Organization (FAO) of the United Nations put forward, at the 14th Conference, the necessity of the theory of MEY for resource management, making MEY surpass the theoretical stage to become one of the goals of fishery management policies. Due to the limited population number, in order to maximize fishery profits, the objective can only be achieved by limiting the number of fishing effort. The fishing effort allowed to fish is often much fewer than the number of fishing efforts allowed

8 Fishery Resource Management and Policy Formulation

369

by the management goal for a single biological item. For example, for the Japanese Spanish mackerel (Scomberomorus niphonius) fisheries in the Yellow Sea and Bohai Sea, the fishing effort that should be controlled using maximum economic benefit as the management goal is 2863 units, and the fishing effort that should be controlled using MSY as the management goal is 3911 units. The former is approximately 27% less than the latter. This will reduce employment opportunities. For an already developed fishery that uses administrative measures to reduce fishing effort, if the fishery is not handled properly, the result could be greater social problems. Although the use of maximum economic benefit as a fishery management goal is reasonable, at least in the short term, it is often not welcomed by society and not accepted by society.

8.3.2.3

Social Goal—Maximum Social Yield (MSCY)

Under the goals of social benefit management, fishery resource management stresses the orderly exploitation of fishery resources. While realizing ecological benefits and economic benefits simultaneously, full consideration is given to the social benefits of fishery resource exploitation, such as increasing the level of social employment, decreasing the gap between the rich and the poor, and so on. Fishery resources are resources with fluidity. Under the conditions of open-access to fishing, the fishing effort will continue to progressively increase, causing the fishing costs to gradually approach an equilibrium point with the catch benefits (bioeconomic equilibrium point, BE) and the fishing profit to tend to zero. In such a case, to restore the level of fishing effort to the level of the MEY, it is necessary to reduce the number of fishers. Fisheries are a high-risk, high-input industry; fishers who fish professionally lack occupation selectivity and mobility, and their ability to withdraw from fishing is quite weak. Therefore, many fishery managers believe that when considering fishery management schemes, controlling the number of fishermen with access to fishing and comprehensively considering biological, economic, and social factors are of considerably important significance to the realization of the MEY. In 1982, Panayotou introduced the social factor of providing labor employment opportunities into a bioeconomic model (Fig. 8.7) for the first time and proposed a new fishery management goal—MSCY, which integrates biological, economic, and social factors. The theory holds that fishery management has to not only consider the biological characteristics and economic benefits of fishery resources but also has to take into account social stability and arrange more fishery labor to engage in fishery production. In an economic society with a large fishery population, an underdeveloped economy, and the presence of substantial unemployment, the wages of fishers are far below the average opportunity cost of human resources in society. Due to the widespread unemployment existing in society and the limitations of the conditions of fishers who fish themselves, fishing may become the only selectable occupation for fishers. In such a state, the opportunity cost of labor for fishers may be close to zero because fishery labor resources are idle labor resources that are not utilized by

370

X. Chen

Fig. 8.7 Graph of the MSCY curve for fishers who lack other employment opportunities

society; then, human resource costs can be ignored when calculating fishing costs, as shown by the TC0 curve in Fig. 8.7. The social fishing effort at the intersection of the cost curve TC0 and the revenue curve is very large and greatly exceeds the MSY, resulting in overfishing and the unsustainable development of the fishery. Full employment is one of the conditions for economic growth and social stability. In particular for coastal fisheries in developing coastal countries, maintaining social stability and realizing relatively full employment are necessary conditions for the sustainable development of the coastal marine fishery economy. In a state of full employment and open and free access to fishing, the fishing effort will be generally greater than the fishing intensity for obtaining the MSY; at this time, the fishing cost curve of the fishery is TC (including the opportunity cost of human resources). At TC ¼ TR, fishery production obtains normal profits, and the TC curve shifts upward to the point where it intersects with the revenue curve to obtain the MEY. The fishing effort fMSCY for obtaining the MSCY is usually far higher than the fishing effort fMEY for obtaining the MEY. From Fig. 8.7, at the point of fishing effort fMSCY, although the residual profit is lower than that in the fMEY state (dg < ab), considering the total social profit (wages+profits), the total social profit in the fMSCY state is higher, and the difference is df. Therefore, although the pure economic profit of enterprises under MSCY is lower than the pure economic profit under MEY, the total residual profit for society is higher than the latter.

8.3.2.4

Optimum Sustainable Yield (OSY) and Optimum Yield (OY)

To overcome the defects of MSY or MEY as management goals, OSY and OY were introduced as management goals into fishery management. OSY refers to the yield or

8 Fishery Resource Management and Policy Formulation

371

utilization rate that guarantees the “optimum” utilization of a certain resource within a period in a biological and economic sense. OY is defined as “the yield that comprehensively considers biological, economic, social, and political values so that humans obtain the maximum benefit from a given fishery resource population.” OY is not necessarily a sustainable yield, and it can be stipulated as a 1-year or 2-year yield according to various short-term factors. OSY is a sustainable yield; usually, both are lower than or equal to the MSY. OY is not an absolute concept; it changes with the importance of the management goals. It is very difficult for fishery management to obtain the best value for the four aspects of biology, economy, society, and politics simultaneously. These four goals even oppose each other sometimes. In short, each of the aforementioned management goals contradicts one another; the expected social, economic, and ecological benefits are different, and the optimal conditions that should be controlled differ greatly. For example, if people want to obtain the maximum economic benefit and ideal energy consumption from a certain fishery resource, the number of fishing vessels must be strictly controlled. If people want to obtain the social benefits of increased employment opportunities from a certain fishery resource, the economic benefits of the fishery must be sacrificed, and the consumption of extra energy must be increased as a price. People cannot have both at the same time, and sometimes one also has to assume the risk of population decline.

8.3.3

Principles for Determining Fishery Resource Management Goals

Through the aforementioned analysis, the various goals of fishery resource management contradict one another. For this reason, it is necessary to formulate fishery management goals that are in line with the realities of each country or each region according to what is suitable for the local conditions. The following factors need to be considered.

8.3.3.1

Trade-Offs between Different Management Goals

Decision-making will involve a balance between input and output to achieve the most satisfactory results. In terms of fishery decision-making, this issue is mainly reflected in the trade-offs between different fishery management goals. A single fishery management goal is, for example, the highest yield, the most benefit, or the most employment. Comprehensive interests such as the economy, society, and ecology are broad concepts that contain a substantial amount of content, and the various content can be related to or contradict each other. The features of the fishery and its production characteristics decide the single greatest benefit one wants to

372

X. Chen

obtain from fishery resources while also sacrificing other benefits, which is still difficult for society to accept, at least at present. The management strategies and corresponding management measures formulated from a single fishery management goal may be optimal. However, in most cases, it is not a satisfactory management scheme. This type of situation is more common. For example, for the shrimp industry in the Bohai Sea during the autumn flood season, if one simply considers the maximum economic benefits of the fishery, to save energy, it is necessary to reduce the existing fishing vessels by approximately 55%; it is predicted that the yield of the current year basically will not decrease and the fishery profits will increase by approximately 50%, with the economic benefits being very significant (Deng and Ye 1990). However, the reduction in fishing vessels by approximately 55% is equivalent to a decrease of 1000 pairs of standard motorsailers; calculated according to 26 people per pair of motorsailers, there would be a loss of 26,000 jobs. This reduces the social benefits of obtaining employment opportunities from Chinese shrimp resources. In practical management, it is very difficult for this method to be accepted, especially in developing countries with large populations (Deng and Ye 1990). This type of single fishery management goal is akin to attending to one thing and losing sight of another, and it is more difficult to execute. Therefore, it is necessary to weigh the different fishery management goals according to the current policy of the country, determine satisfactory management goals, and formulate corresponding management strategies and measures; this is the only feasible, safe method. This requires scientific researchers to provide a sufficient selection range and corresponding scientific evidence and forecasts for decisionmaking. Many people are involved in fishery resource exploitation and utilization; these people can be divided into two groups—direct beneficiaries and indirect beneficiaries. Direct beneficiaries include enterprise management personnel, workers, ship owners and fishers, processors and consumers, and so on, engaged in fishing production; indirect beneficiaries include fishing vessels and the fishing port construction industry, and so on. They all have their own interests and goals in the exploitation of fishery resources and will exert their influence on decision-making through various channels. Fishery decision-making cannot be subjected to their influence but must fully consider their legitimate interests and reasonable requirements.

8.3.3.2

Balance between Long-Term Interests and Short-Term Interests

Another issue of decision-making involves the balance between short-term interests and long-term interests. One of the reasons for fishery decision-making mistakes is the improper handling of this issue. Short-term interests mainly refer to content such as current catches and economic benefits. Long-term interests refer to content such as stable catches, economic benefits, and employment within the next few years or a longer period of time. These interests can only be attained based on a stable population biomass. From the producer’s perspective, these two interests are

8 Fishery Resource Management and Policy Formulation

373

Table 8.1 Assessment data for the Japanese Spanish mackerel population in the Yellow Sea and Bohai Sea (Ye and Huang 1990) Time 1st year Fifth year 5-year total Tenth year 10-year total 15th year 15-year total

Maximum employment Yield (ton) Profit (CNY 10,000) 61,552 3908 27,958 213 183,973 5924 26,281 28 316,401 6288 26,204 0 446,996 6339

Maximum economic benefit Yield (ton) Profit (CNY 10,000) 30,078 1954 30,078 1954 153,893 9771 30,078 1954 300,787 19,543 30,078 1954 461,680 29,314

difficult to coordinate. It is reasonable for fishery producers and leaders of fishing enterprises to value the current year’s interests. However, when fishery decisionmakers decide on fishery management strategies, balancing the relationship between short-term interests and long-term interests is of vital importance. In particular, because of the significant continuity effect that fishery resources have, all such characteristics must be considered when making fishery decisions and formulating management strategies. It should be considered that if fewer fish are caught in the current year, how will the recruitment situation be in the next several years? By how much can the catch be increased, and how great will the economic benefits be? In making decisions, the balance between short-term interests and long-term interests, that is, the optimal population number and the corresponding fishing effort, must be determined. We have discussed the relationship between long-term interests and short-term interests in detail earlier, and this relationship can be decided by the size of the discount rate. For example, Table 8.1 provides the resource assessment data on the Japanese Spanish mackerel population in the Yellow Sea and Bohai Sea. These data assume that the initial resource amount B0 > BEOP is obtained by calculation. From Table 8.1, maximum employment is equivalent to taking infinity for the discount rate (δ) (that is, open-access fishery); it focuses on the current interests of the fishery and does not take into account long-term interests. The fishing effort at equilibrium is 5725 units. Maximum economic benefit is equivalent to taking zero for the discount rate; it focuses on the long-term interests of the fishery, and the fishing effort at equilibrium is 2862 units. Then, why can fishery decisionmaking not accept the two extreme situations of δ ¼ 1 or δ ¼ 0? To take δ ¼ 1 is to sacrifice long-term interests in exchange for current interests, and yield and profit will both suffer losses; in particular, the profit loss is too great. To take 1 ¼ 0, the fishing effort has to be reduced by half, and it will be difficult to make production arrangements. Fishery decision-making will necessarily select a suitable discount rate (0 < δ < 1) to adjust current interests and long-term interests to a currently socially acceptable level. This is the unavoidable reconciliation and compromise in fishery decision-making. The optimal population number (B*) is decided by this δ value together with the fish price and cost, and then, the management strategies and measures that should be adopted are further decided according to B* to control the

374

X. Chen

control variables ( f and Y ) within the allowed range. Therefore, the balance between long-term interests and short-term interests is how to determine the value of the discount rate δ. If the decision-makers can determine the relative percentages of short-term interests and long-term interests of a fishery according to various factors, then we can use mathematical analysis methods to determine this discount rate and the other relevant data needed for decision-making.

8.3.3.3

Reasonable Allocation of Resources

The span of spatial and temporal distribution for fish populations is very large. Different fishing enterprises can use different netting gear to carry out fishing operations in different sea areas and at different times; then, a fixed resource allocation pattern is formed. Therefore, what types of management measures and methods are used that will involve the allocation or reallocation of resources and involve the interests between fishers in different sea areas and different ways of operation. For example, internationally shared fishery resources also involve the interests between countries. Therefore, fishery management decision-making involves determining a specific fishery management strategy, and it must take into account the reasonable allocation of resources and traditional fishery interests. For example, the shrimp fishery in the Bohai Sea during the autumn flood season is harvested using three types of fishing gear, that is, shrimp drift nets, motorsailer trawling, and wheel trawling. Because the shrimp catching efficiency and operating characteristics of these three types of fishing gear are different, different opening dates are executed to balance the resource allocation among the three. For example, September 5 is the opening date for shrimp drift nets, September 20 is the opening date for motorsailer trawling, and October 5 is the opening date for wheel trawling. The opening date for each type of netting gear is 15 days apart. Before the 1980s, the yield ratios for these three types of fishing gear were as follows: motorsailer trawling accounted for 50%, wheel trawling accounted for less than 50%, and shrimp drift nets accounted for a very little percentage. Starting from the early 1980s, due to the massive development of shrimp drift nets, the technology has improved, expanding the operating sea area, and great changes have occurred in the yield ratios of the three types of fishing gears. The yield of shrimp drift nets accounts for 30%, motorsailer trawling still accounts for approximately 50%, but the yield of wheel trawling has decreased substantially, accounting for only approximately 10%. Such ratios are little related to resource abundance; they mainly depend on the difference in opening dates, improvements in fishing gear and fishing methods, and an increase in fishing effort. Therefore, this type of resource allocation is related to fishery management measures. During decision-making, changes in this type of resource allocation and whether the original resource allocation is reasonable have to be taken into account. If one starts from the overall interests of society and adopts certain fishery management measures, the interests of some traditional fisheries will inevitably be affected. When making fishery decisions, it is necessary to consider providing

8 Fishery Resource Management and Policy Formulation

375

appropriate compensation and guaranteeing compensation in terms of policy, but nontraditional fisheries are not subject to this limitation. The implementation of fishery management measures and methods may generate a reallocation of fishery resources. This is not to transfer the traditional interests of some fishers to other fishers at no cost. The purpose of fishery management is to ease the contradictions between fishers caused by the utilization of fishery resources in the form of policies. If the interests are transferred at no cost, even if it is beneficial to the interests of the entire society, it will also intensify the contradictions between the fishers and will cause challenges regarding policy execution. When utilizing a fishery resource, there are often contradictions and disputes between producers. When making fishery decisions and formulating management measures, it is necessary to consider how to ease contradictions, reduce disputes, reasonably allocate resources, and maximize the economic, social, and ecological benefits of fishery resources.

8.3.4

Composition of Fishery Resource Management Systems

Usually, fishery resource management mainly concentrates on biological aspects and concentrates on the individual main populations that are being fished. The management measures we adopt are for maintaining the original equilibrium or changing the original equilibrium to establish a new equilibrium as a replacement, to reach the expected management goals. Management measures usually control the catch or limit the fishing effort or limit the mesh size (equivalent to limiting the size of individuals allowed at first catch), and the range of available options is not large. If we enlarge fishery resource management systems from the traditional biological scope to the social and economic scope and view the natural system and the socioeconomic system as a whole, fishery resource management systems consist of three parts: an environmental subsystem, including meteorology, physical hydrology, and so on, which affect and change the biological productivity and production process and fishing operation conditions; a biological subsystem, including the biological and recruitment features of the population itself and the interactions of interspecies relationships; and a social subsystem, including traditional force in society, the economy, management, and so on. With the aforementioned division method, fishery resource management systems expand, the range of available options is larger, the reliability of fishery resource management systems increases, and the stability improves.

8.3.4.1

Environmental Subsystem

Changes in weather systems, the physical features of inland and marine waters, and so on, generate important effects on population numbers and distribution. For example, the anchovies (Engraulidae) in Peru and the sardines (Sardina pilchardus)

376

X. Chen

in Japan and off the shores of California in the United States have all experienced catastrophic consequences under the effect of such physical factors (that is, the El Niño phenomenon that occurs periodically in the central Pacific Ocean). The corresponding relationship between the peak years of largehead hairtail (Trichiurus lepturus) catch in the winter flood season off the shores of Zhejiang and the El Niño phenomenon is very obvious, but the La Niña phenomenon will lead to a reduction in the yield of largehead hairtails. Although it is impossible to control the weather conditions and the marine environment, it is possible to predict such catastrophic changes. Based on such predictions, fishery management agencies should draw up contingency plans to facilitate responses to catastrophic weather conditions and changes in the physical conditions of the ocean in order to reduce losses. Human living and production activities can also affect the physical and chemical properties of local waters, population numbers and distribution, and fishery production. The possible paths of influence are placing artificial devices in the waters to create places of refuge that increase population numbers and catches, for example, an artificial reef and so on.

8.3.4.2

Biological Subsystem

Biological components include the biological and recruitment characteristics and resource status of the fishery for the population being fished, as well as the interactions of the interspecies relationships in the ecosystem. In the vast majority of cases, the management of the population being exploited is determined based on the assessment data for a single population model and after weighing various relevant factors. However, fishing affects not only the exploited population’s number and its dynamic features but also the other populations’ numbers in the same ecosystem. Therefore, in a specific ecosystem, the exploitation and management of a population will generate a greater effect on the entire fish community, and a single species population model cannot predict such an effect. Therefore, the biological components include the specific fishery resources being fished as well as other biological species in the ecosystem. To obtain the established social benefits from these fishery resources, the following several types of fishery management measures are available as options: (a) Yield allocation system (catch quota)—Quota allocation management allocates the available fishing yield to producers according to fishery resource assessment results. Such an allocation only involves a certain population within a certain period of time. Such an allocation can be carried out internationally and can also be carried out domestically. Jurisdiction over fishery resources in the 200-NM exclusive economic zone should belong to the home country, and other countries cannot interfere in how resources are allocated. For the allocation of fishery resources in the high seas, an agreement is reached through consultations among international agencies, and the agreements are jointly observed. The quota

8 Fishery Resource Management and Policy Formulation

377

allocation only limits the yield and does not limit the number of fishing vessels. Once the catch reaches the rated quantity, fishing can no longer continue. (b) Fishing vessel registration system—In a demarcated sea area within a certain range of time, only fishing vessels that have obtained permission can enter the sea area for net-casting operations. The use of such a method to manage fisheries only limits the number of fishing vessels and does not limit the yield. For example, the prawn fishery in the Bohai Sea of China during the autumn flood season is managed using such a method. (c) Biological characteristics of the catch—Controlling the biological characteristics of the catch is also one of the commonly used fishery management measures. The most important characteristic is the length of the individuals at the first catch. By controlling the type of netting gear and the mesh size, the biological characteristics of the catch are controlled. (d) Closed fishing season and closed fishing areas—To protect fish population numbers and the recruitment process from being damaged, closed fishing areas and corresponding closed fishing periods must be demarcated to generate a protected sea area for the spawning and feeding of fish populations. The aforementioned fishery management measures are determined according to the resource assessment data of a single fish species model. However, fishing does not only affect the exploited population’s number and its features, it also affects the unexploited populations’ numbers. Therefore, in a certain ecosystem, the effect generated by the exploitation and management of a fishery for a population is substantial, and a single fish species model cannot predict such an effect. If the purpose of fishery management is in maintaining the equilibrium of the entire ecosystem rather than maintaining the quantity level of a population, then an ecosystem model must be applied. Only in this way can the types of effects generated by the exploitation of a population on adjacent neighbors be understood and the phenomenon of attending to one issue and losing sight of another in a single fish species model be prevented.

8.3.4.3

Social Subsystem

The social component in the fishery management system actually refers to the role of people. The exploitation and utilization of a fishery resource will involve the interests of many people, including direct producers (fishermen, fishing crew, and ship owners), indirect producers (workers who build fishing vessels, fishing ports, and so on), consumers, and so on. They will affect fishery decisions in various ways to safeguard their own interests. Fishery management agencies have the responsibility to take care of the interests of all parties. They balance the interests of all parties by proposing management goals, formulating policies, reasonably allocating resources, and determining fishery management measures. On the one hand, fishing activities affect fishery population numbers and interfere with the marine ecosystem; on the other hand, fishing activities can also change the economic conditions of

378

X. Chen

human society within a certain scope. Only by controlling fishing activities to an acceptable level can the expected benefits from fishery resources be obtained. Changes in natural factors can sometimes lead to disastrous consequences for fisheries. Similarly, if fisheries are not properly managed, there can be disastrous consequences for fisheries. Therefore, the social component in fishery management systems is very important.

8.3.5

Issues Faced by Fishery Resource Management during the Decision-Making Process

In the fishery decision-making process, the role and degree of participation of scientists differ for each country. Fishery decision-making requires fishery resource assessment data. Most of these assessment data are provided by scientific research institutions, international organizations, and fishery authorities in various countries. Fishery resource assessment data include the damaging effects on populations, the degree of resource utilization, and predictions of the effects on populations under various fishing modes, as well as dynamic features, fishery development prospects, and other content. How scientists introduce these data to decision-makers and how decision-makers utilize these data to formulate management policies to ensure the sustainable development of fisheries are important issues to consider. In the fishery decision-making process, scientists and decision-makers face the following challenges.

8.3.5.1

Nonexclusive Management

All fishery resource assessment methods and the application of corresponding results are established on the basis of an unclear limiting condition, and this limiting condition is exclusive management. Fishery production is fishery resource exploitation and utilization. Fishery resources have a reproduction capacity, manifested as breeding and growth, and have capital characteristics. If people want to maintain the sustainable development of fisheries, resources must be protected. Protecting resources is essentially a problem of dynamic optimization control within a certain course of time. The unreasonable utilization of fishery resources refers to the wrong allocation of resources in terms of time, and its result is either a decreased yield or poor economic efficiency and may lead to a population decline. The main reason for the generation of such a phenomenon is competition caused by economic interests. Such a situation can be seen everywhere in the history of fishery development in the world and China. So far, it continues to occur. Most populations form a very large span of temporal and spatial dynamics during the growth process. Producers utilize this characteristic to be able to engage in fishing operations in a certain geographic location at any time. In most cases, this

8 Fishery Resource Management and Policy Formulation

379

type of operation is also within the scope allowed by the management policy. For example, the Chinese white shrimp (Fenneropenaeus chinensis) in the Yellow Sea and Bohai Sea areas are born annually, with the spawning grounds in the shallow waters along the coasts of the various bays in the Yellow Sea and Bohai Sea areas and the overwintering grounds in the central and southern parts of the Yellow Sea. Fishing operations for Chinese white shrimp is possible in different sea areas during the course of the entire life activities and migration of shrimp. From the 1950s to the 1960s, China mainly fished for reproductive groups that migrated into various spawning grounds for reproduction and operated during the spring flood season. Japan fished for groups that migrated for overwintering and during the overwintering period and operated during the winter flood season. The yield ratio between China and Japan was approximately 4:6. Beginning in 1961, China changed spring fishing to autumn fishing, executed a management policy of spring protection and autumn fishing, and formulated detailed management measures, with the hopes of the sustainable use of resources to develop shrimp fisheries on the basis of protecting shrimp resources. Upon entering the 1980s, due to the large profitability of the fishery, it attracted investors and an excessive number of fishing vessels, with a loss of control over fishing efforts for a long time; moreover, the competition between various provinces and various fishers was fierce, especially the large-scale fishing of parent shrimp used for nursery breeding, which caused the overfishing of this population for a long time, with a severe deficiency in the number of spawning parents, which eventually led to fluctuations in population numbers at extremely low levels. Therefore, the nonexclusive management mode for fishery resource exploitation and utilization generates great challenges for the formulation, execution, and implementation of fishery management policies and measures and will even lead to a decline in fishery resources from which there is no way to recover.

8.3.5.2

Data Issues

Data issues involve reliability and accuracy. Data reliability is within the scope of scientific examination and approval. The reliability of resource assessment data provided by scientists to fishery decision-making departments should be confirmed. However, often due to interference from uncontrollable factors, the data are limited by various conditions, such as methodological issues, economic support issues, incomplete data, and errors. The research process for a specific fishery resource involves collecting basic data first, including fishery statistics and data on the environment, market economy, and several marine surveys, and so on; after several levels of analysis, the conclusive data submitted to the decision-making departments include dynamic features of the population, the degree of resource utilization, fishing modes, the effects of the environment and parents on population numbers, as well as the harvesting strategy, management measures, and selection range on this basis, and corresponding forecasts on the development prospects of resources and fisheries. Errors, such as those originating through collection methods for the original data, are introduced to the conclusive data through error transmission. Under normal

380

X. Chen

circumstances, scientific and technical personnel must review the errors contained in the original data. However, sometimes, due to various reasons, scientific and technical personnel cannot clearly explain the degree of error and the specific effects on the results, only giving a confidence limit and standard deviation for the statistical analysis data, and the confidence limit and standard deviation are sometimes comparatively large. Therefore, it may be difficult for decision-makers to choose suitable data for decision-making. In addition, it is also possible that fishery resource assessment data are not in line with current economic, political, and social needs. This misalignment makes it difficult to implement sound scientific recommendations. This is because scientists often focus on protecting resources, maintaining the existing ecological equilibrium, emphasizing the consideration of long-term social benefits obtained from fishery resources, and ignoring current social needs. It is quite difficult to require decision-makers to weigh all aspects and adjust various interests to a level acceptable to current society. Due to the aforementioned problems and difficulties, decisions affecting fishery resource management are often indecisive when adopting measures. Coupled with the challenge of coordinating the interests of producers between countries and regions, even some reasonable recommendations for contingency measures to be taken that have sufficient scientific evidence are difficult to accept and implement, leading to the decline of some populations under the effect of fishing.

8.4 8.4.1

Policy Formulation for Fishery Resource Exploitation and Utilization Development Strategies in the Course of Fishery Resource Exploitation and Utilization

In different periods of fishery resource exploitation and utilization, the fishery management strategies are different, and these strategies can be summarized overall into three aspects: first, promote fishery development; second, maintain fishery stability; and third, rebuild the fishery. Population recruitment is the most important factor in the sustainable exploitation of fishery resources and fishery production. Only normal population recruitment can maintain the population numbers necessary for fishery production. Therefore, various management strategies are needed for maintaining or restoring the recruitment number for a population. 1. Promote fishery development—In the early stage of fishery development, if the predicted population number is abundant, a fishery can develop. At this point, the fishery management agency should create a suitable environment for fishery development and promote fishery development. The most effective measure is economic stimulus, which takes a variety of forms. Subsidies (including fish price subsidies), loans, tax reductions and exemptions, the construction of port facilities, the development of transportation systems, and so on, can all stimulate and

8 Fishery Resource Management and Policy Formulation

381

promote the development of a specific fishery. Indirect economic incentives include increasing the import tax on the same species of fish to reduce competition, and so on. Under the encouragement of favorable economic policies, fisheries will very quickly transition into a growth period. To have fisheries meet the needs of society, prevent excessively fast development and excessive fishing effort, and prevent a substantial decrease in population numbers, various economically preferential policies should be gradually canceled during the growth period of fisheries. In terms of management strategy, the strategy for stimulating fishery development should be shifted to maintaining the stability of a fishery. 2. Maintain fishery stability—For a developed fishery, the population number has to be sustained in order to maintain the stability of this fishery. The management strategies adopted and the policies executed are completely different from the strategies and policies for promoting the development of a fishery. It is not only necessary to cancel economic preferential policies, but certain restrictions on fisheries also have to be adopted. The aforementioned yield allocation system, fishing vessel registration system, and mesh size limitations are commonly used management measures. The resource status, the socioeconomic status of related fisheries, and the predictions for these two are very important for determining fishery policies during this period. In this period, fishing effort needs to be strictly controlled, and only then can the fishery balance be maintained. If there are too many operating tools, the population number will very quickly decrease to a difficult to control level under the effect of fishing, and the fishery will enter an overexploitation period, during which the possibility of a population decline is great. 3. Rebuild the fishery—A certain exploited fishery, due to the effect of fishing, will eventually result in fishery failure. The only condition for rebuilding this fishery is to restore generational recruitment quantities; the following are the main measures: • Closed fishing—The purpose of closing a fishery is to retain enough spawning parents, allowing the retained quantity to reach the maximum value of the asymmetric “S”-shaped growth curve. If the environmental conditions are favorable, the resources can recover very quickly. In the initial stage of resource recovery, it is necessary to control fishing, and the catch should not be too large because during this period, the risk of further resource decline is greatest. • Protect spawning grounds—Damage to spawning grounds will lead to a population decline. Protecting spawning grounds is one of the effective measures for restoring resources. Some populations, such as some shrimp, cluster in shallow waters at the estuary to develop and grow during the larval and juvenile shrimp stages. If the conditions of these sea areas are affected by human production and life activities (such as dam construction, road repair and construction, and factories), it will also affect the generational number and even cause a decline in the population. The protection of natural conditions in

382

X. Chen

an estuary area is very important to restoring and maintaining the recruitment quantities of certain populations. • Proliferation—Proliferation and release are also effective measures for restoring certain fishery resources. For example, the number of shrimp in the northern Yellow Sea has decreased to the point where no fishing grounds can be formed, and the shrimp fishing industry has gradually disappeared. Since a large release in 1985, the shrimp catch during the autumn flood season has reached 2000 tons. The recapture rate is high, and the economic benefit is substantial.

8.4.2

Fishery Economic Policies in the Course of Fishery Resource Exploitation and Utilization

Any country hopes to control economic and production activities within a socially acceptable range. In addition to some specific management measures, economic policies such as investment, taxation, and subsidies are adopted for macrocontrol to attain the sustainable utilization of fishery resources. The following are the main economic policies and measures.

8.4.2.1

Investment

The exploitation of a certain fishery resource or the development of a specific fishery requires equipment, such as fishing vessels, netting gear, processing, and so on, which all require capital and investment. In fisheries, capital investment can take a variety of forms, for example, building fishing vessels and investing in the construction of processing plants. The maximum fishing effort of a fishery depends on the number and size of fishing vessels, and the maximum yield of a fishery is not only related to fishing effort but is also sometimes limited by the processing equipment. Therefore, the investment size in a fishery basically controls the level of utilization of fishery resources. If the initial resource quantity (B0) of a fishery is greater than the optimal population number (B*), a fishery that has profits will attract investments in new vessels to ensure the fishing effort reaches the maximum value fmax allowed by the investment. The optimal harvesting strategy associated with this is:
f ðt Þ ¼

f max ðt Þ f ¼ F ðB Þ=B 

Bðt Þ > B Bðt Þ ¼ B

ð8:1Þ

The above formula shows that when B(t) > B*, to strive for the maximum investment, utilize as much fishing effort as possible to exploit the resource to make the population number decrease to the optimal population number (B*) as quickly as possible. When B(t) < B*, the number of fishing vessels must be reduced

8 Fishery Resource Management and Policy Formulation

383

to decrease the fishing effort to f * as soon as possible, which will allow the fishery to be in a state of equilibrium. Due to the irreversibility of fishery investment, there are very few opportunities for fishing vessels to switch to other industries, and there are not many opportunities for sales. In addition, there is a time lag in fishery investment. The maximum fishing effort fmax, once reached, is difficult to reduce thus generating excess fishing capacity. Excess fishing capacity in fisheries (referring to excessive fishing effort) is very common. Some believe that such a phenomenon is the result of open-access exploitation without adding any control. Mathematical analysis proves that even under the optimal fishery control, excess fishing capacity may also occur. To not generate waste due to idle excess fishing capacity, in most cases, the existing excess (surplus) fishing capacity will continue to be used. This occurs at the price of consuming fishery resources, sacrificing fishery economic benefits, and increasing additional energy consumption in exchange for the continued use of surplus fishing capacity and an increase in the employment rate, and the losses from doing so will definitely outweigh the gains. The aforementioned discussion is simple and typical; that is, it assumes the exclusive management of fishery resources and the exploitation and utilization of a single population. However, the actual situation of fisheries is much more complicated. The particularities of fishery production include that its scope of production activities is very broad, there are numerous available populations, and many sources of capital are needed for investment. A common phenomenon is that as long as the exploitation of a certain fishery resource is profitable, the fishery can attract investment to increase vessels and add nets; however, the increase in fishing leads to bycatches of other populations, which ultimately leads to loss of control over fishing efforts, damages the reproduction capacity of fishery resources, and leads to a decline in fishery resources. The governments of all countries should adopt a limited investment mode to protect fishery resources and, at the same time, must coordinate with other effective management measures; only then can the sustainable use of fishery resources be ensured.

8.4.2.2

Taxation

To obtain public revenue from the exploitation of natural resources, the government can adopt many tools, one of which is taxation. Another function of taxation is to develop or control certain industrial activities. Economists are especially interested in taxation; one of the reasons is its flexibility, and the other reason is that taxation is more conducive to maintaining the equilibrium of competing economic systems than other methods. More importantly, in terms of principle, taxation can cause enterprises to carry out production activities within a scope that meets social needs. The main purpose of taxation in fishery resource exploitation and utilization is to drive fishery development activities to the required equilibrium point (such as MEY, BE, and so on) as soon as possible.

384

X. Chen

Open-Access Fisheries Assume now that the tax levied on a unit of catch is a. Taxation is the only form of control over open-access fisheries. Therefore, in open-access fisheries, a new bioeconomic equilibrium is established under the satisfaction of the condition p0 ¼ p
a ¼ cðBÞ

ð8:2Þ

In the formula, p is the fish price, c(B) ¼ c/B, B is the population number, c is the cost, and c/B is the decreasing function of B. According to Formula (8.2), an appropriate choice of tax a can drive the population number B to reach the wanted equilibrium level. If p < c(B), then the fishery is at a loss and cannot continue operation; the tax has a negative value, which is referred to as negative tax, and a negative tax is usually referred to as an allowance. With consideration from the perspective of overall benefits and the sustainable use of resources, if the population number is too small, measures should be taken to stop fishing; when the catch is zero, the population number will increase until reaching the optimal population number B*. The corresponding sustained economic profit can be expressed as: ½p
cðBÞF ðBÞ ¼ aF ðBÞ This economic profit is owned by the fishery management agency or the government and is not dispersed to various fishing vessel owners in an open-access fishery. In the Gordon-Schaefer yield-fishing effort curve, due to the introduction of tax a, the constant λ < 1 is multiplied by the total revenue curve TR, and the same result can be obtained by using the formula 1/λ multiplied by the total cost curve TC. The latter is equivalent to levying a fishing effort tax, which thereby can be regarded as another form of fishing effort tax a. In practice, however, it seems simpler and more effective to levy taxes on catches than levy taxes on fishing effort, particularly because catch is easy to measure while it is very difficult to accurately express fishing effort using numbers. Formula (8.2) refers to the situation under equilibrium conditions. To discuss dynamic optimized policies, we must speculate on a fishery’s reaction to the state of imbalance caused by taxation. As a simple and extreme case, it is assumed that such a reaction is instantaneous; that is, the harvest rate is adjusted as an appropriate way to continuously eliminate the net income of fishers. If a ¼ a(t) represents the tax at time t, from formula (8.2), we have p
c ð Bð t Þ Þ  a ð t Þ For a given tax scheme a(t), we obtain

ð8:3Þ

8 Fishery Resource Management and Policy Formulation

d ðBÞ=dt ¼
a0 ðt Þ=c0 ðBÞ,

385

Bð0Þ ¼ B0

Therefore Y ðt Þ ¼ F ðBÞ
dB=dt ¼ F ðBÞ þ a0 ðt Þ=c0 ðBÞ

ð8:4Þ

In the formula, F(B) is the population growth function; then, the catch rate Y(t) is determined by the tax. In turn, the tax can also determine the catch. Assume now that the goal of the management agency is to maximize the total profit (that is, present value) generated by the fishery. According to the assumption, the profit is not assigned to the fishers, and the profit they obtain is only used for taxation: Profit ¼ aðt ÞY ðt Þ ¼ ½p
cðBÞY ðt Þ In this way, the goal of the management agency is to maximize the present value of the total tax: Z PV ¼

1

e
δt ½p
cðBÞY ðt Þdt

0

In other words, the management agency is faced with the optimization problem of the exclusive owner, which simplifies the study of the optimal harvesting strategy in Eq. (8.4) and determines the taxation policy according to it. For example, B(0) ¼ B1 and a(0) ¼ 0 are identified; that is, assuming that the management agency starts with an open-access fishery in bioeconomic equilibrium, the optimal harvesting strategy uses Y(t) ¼ 0 until B increases to the optimal population number (B*). According to Formula (8.4), the appropriate tax is (R að t Þ ¼

t 0


c0 ðBðt ÞÞF ½Bðt Þdt

Bðt Þ < B

a ¼ p
c ð B  Þ

Bðt Þ ¼ B

ð8:5Þ

Formula (8.5) indicates that if the population number B(t) is less than the optimal population number (B*), the tax is determined by the top formula of Formula (8.5); if the population number B(t) is equal to the optimal population number (B*), taking a fixed tax, in order to maintain the needed equilibrium, the tax is given by the bottom formula of Formula (8.5). Notably, Formula (8.4) and Formula (8.5) assume that the net profit of the fishery is fully converted to tax and not assigned to the fishers in the open-access fishery. However, this is very unrealistic. A reasonable taxation scheme should involve the fishers and the state jointly sharing the profits of the fishery, allowing equilibrium to be maintained.

386

X. Chen

Dynamic Optimal Taxation Strategy It is assumed in Formula (8.3) that the adjustment of fishing effort is very timely and can be adjusted immediately according to whether there is profit in the economic benefits, which is very unrealistic in reality. A more realistic model assumes that positive or negative private profits will promote the expansion or contraction in the level of fishing effort used in fisheries. To this end, we have established the following dynamic model: dB ¼ F ðBÞ
fB dt df ¼ k 0 f ½ðp
aÞB
c dt

ð8:6Þ

Formula (8.6) indicates that the increase or decrease in fishing effort is proportional to the benefit and profit per unit fishing effort [( p – a)B – c]. The constant k0 is a measure that reflects the intensity of investors to the amount of fishing effort. At the time of the extremum situation k ! 1, the reaction becomes instantaneous, and there is ( p
a)B
c  0. The values of B and f are assumed to be Bð0Þ ¼ B0

f ð 0Þ ¼ f 0

ð8:7Þ

The goal is to determine the taxation policy a ¼ a(t) to make Z

1

J ð aÞ ¼

e
δt ½pBðt Þ
cf ðt Þdt

ð8:8Þ

0

reach the maximum. Since pB
c ¼ ( p
a)B
c + aB, the profit flow is divided into the portion obtained by the fishers [( p
a)B
c]f and the taxation portion obtained by the state aBf. This then becomes a linear problem of the control variable a, which is subject to the following constraint amax  a  amin

ð8:9Þ

In the case of amin < 0, for the development of some fisheries, the adoption of subsidy policies can be considered. One can refer to Clark (1976) for details regarding the calculation of the specific optimal equilibrium state. The issues now are how to establish taxation policies that promote the development of a fishery system toward the optimal equilibrium (B*, f *) and how to maintain equilibrium after it reaches equilibrium. We use a diagram to explain. Figure 8.8 is the solution for the optimal taxation problem. In Fig. 8.8, the vertical axis represents the fishing effort f, the horizontal axis represents the population number B, and B* and f * are the optimal population number and the optimal

8 Fishery Resource Management and Policy Formulation

387

f amin

amax A B a=amin f*

a=amax

D B*

C K

B

Fig. 8.8 Solution for the optimal taxation problem

fishing effort, respectively. To draw this graph, first the minimum control trajectory and the maximum control trajectory through the point (B*, f *) have to be determined (as in Fig. 8.8). If the initial point (B0, f0) happens to be located on one of these curves, such as point A or point D, the appropriate tax can be applied; amax at point A or amin at point D drives the system to reach the optimal equilibrium (B*, f *). Then, at this equilibrium point, the tax is converted to the corresponding fixed tax a* to keep the system in a state of equilibrium (Fig. 8.8). If the initial positions of B0 and f0 are not on the control trajectory, for example, they are at point B or point C, then the use of a single tax rate cannot possibly drive the system to reach (B*, f *). For example, suppose that the system starts in a completely unexploited state (as at point C in Fig. 8.8); at this time, the fishing effort is f ¼ 0, and the population number is B ¼ K (K is an undetermined variable in the Schaefer model, the load capacity). In this case, the minimum control trajectory a ¼ amin should be adopted until the system develops to point A on the aforementioned trajectory through (B*, f *), and then, tax a is converted to tax amax to drive the system to (B*, f *) like before; when the system reaches (B*, f *), convert the tax to a*, and the system is maintained in a state of equilibrium. The execution of such a plan should be clear. First, allow the fishery to expand at a natural rate (if amin ¼ 0) or the expansion can receive subsidies when necessary. However, unless the expansion rate of the fishery is properly controlled before the population level decreases to B*, the inertia of the expansion process will inevitably cause economic overfishing. Therefore, when the population is in an unexploited state, the optimal taxation policy requires that the maximum tax amax be used in an early stage in the fishery development process. It is very important to master this period.

388

X. Chen

Fig. 8.9 Bioeconomic analysis of limiting fishing gear and fishing methods. TC0 Origin cost curve, TC1 Cost curve after limiting, TR0 Original revenue curve, TR1 Revenue curve after limiting, E00, E10, E11, E01 Bioeconomic equilibrium points

Revenue

Effort

Similarly, if the fishery has already been overexploited and the fishing effort is excessive (as at point B in Fig. 8.9), the existing fishing effort of the fishery is greater than the optimal fishing effort ( f > f *), and the existing population number is lower than the optimal population number (B* > B). The taxation policy in such a situation should impose tax amax to force a decrease in fishing effort, and the population number will increase accordingly. Before the population number reaches B*, at a certain point on the minimum trajectory, such as point D in Fig. 8.8, the tax should be reduced, taking amin to drive the system to develop toward the equilibrium point (B*, f *). When the system reaches the equilibrium point, the optimal tax a* is used to maintain the optimal equilibrium of the system. Generally, the optimal taxation policy for a fishery is composed of three parts— the maximum (or minimum) and the minimum (or maximum) tax rates and the final equilibrium tax rate a*. For a specific fishery, modeling can be used to determine amin, amax, and a*, but the calculation process is extremely complicated.

8.4.2.3

Subsidies

In the marine fishing industry, subsidies, as financial and economic means, play an important role in pushing forward the development and management of fishery production; furthermore, they also play a positive role in the stability of fishing areas and the employment of fishers. However, fishery subsidies also play an opposite role. Very large financial subsidies have enabled those already unprofitable fisheries to continue to exploit and produce, leading to a sharp increase in fishing capacity and causing a decline or even exhaustion to emerge in fishery resources. In the last few years, the important effect of subsidies on fishery resources has attracted the attention of various countries and various fishery management organizations. Some scholars have pointed out that subsidies are one of the main reasons for the generation and existence of excess fishing capacity. Many international organizations, such as the Organisation for Economic Co-operation and Development (OECD), have conducted research on the issue of fishery subsidies.

8 Fishery Resource Management and Policy Formulation

389

Generally, there are three types of situations in a fishery that require the implementation of subsidy policies. (1) When developing a fishery or exploiting a certain fishery resource, subsidies are sometimes required. Usually, in the initial stage of fishery development, due to unclear prospects and high risks, investment from external funds is insufficient, and there is a shortage of internal funds. Under such circumstances, the government often adopts subsidy policies to urge the development of these fisheries. For example, most countries adopt subsidy policies in the initial stage of developing distant water fisheries; (2) When urging excess fishing capacity and labor to leave a certain fishery, subsidy policies may have to be implemented. Due to the inertia of fishery investment and other reasons, most fishery equipment and labor are in an overcapacity status. Due to the often irreversibility of fishery investment as well as the labor force engaged in fishery production, some fishers are separated from other industry sectors in terms of material and market technology. Therefore, the government has to adopt policies that attract fishers in fisheries, especially exploitative fisheries, to leave the fishery; (3) The purpose of adopting subsidy policies is to maintain the fishing overcapacity of a specific fishery, the purpose of which is to reduce unemployment in the fishing industry. However, these subsidies are directly endowed to the fishing industry; therefore, this classification is not comprehensive enough. In an analysis from the perspective of fishery resource protection and utilization, subsidies can be divided into two types. (1) The first type includes subsidies that promote an increase in fishing effort and fishing capacity, such as fuel tax exemptions, subsidized loans, and so on, which are referred to as subsidies that are unfavorable to resources and the environment. Such subsidies reduce investment and production costs and increase economic benefits, which thereby directly or indirectly lead to the generation of excess fishing effort and fishing capacity, damaging the sustainable use of resources. At present, most fishery subsidies belong to this type. (2) Subsidies that reduce fishing effort and fishing capacity, such as the redemption of fishing vessels, are referred to as protective subsidies, which are favorable to resources and the environment. The most common forms of protective subsidies are the redemption of fishing vessels and fishing licenses, the refurnishing of fishing vessels to operate in unexploited or low-intensity exploitation fisheries, the retraining of fishers, the design and improvement of selective fishing gear, the development of the breeding industry, and fishery management. According to statistical data from the late 1980s, the FAO estimated global fishery operations and capital costs to be USD 124 billion, revenues to be USD 70 billion, and losses incurred to be USD 54 billion. The large gap between costs and revenue is made up by depending on government subsidies. Milazzo (1998) estimated that there is approximately USD 14–20.5 billion in subsidies in global fisheries each year. These subsidies have not only led to the loss of public taxation in fishing countries, but in most cases, they have also damaged the fishery sector, leading to the generation of excess fishing capacity and the overexploitation of and even decline in fishery resources. Various forms of allowances may equal one-fourth of the global fishery revenue. Many allowances have directly or indirectly accelerated the expansion and

390

X. Chen

maintenance of overcapacity, reduced the profitability of fishery resources, and led to a decline in resources. Therefore, subsidies can be regarded as one of the main factors in the generation of fishery resource crises. Most scholars have recognized the relationship between subsidies and excess fishing capacity. Subsidies not only manifest in fishing vessels but also in various aspects such as fuel oil, insurance, labor, fishing rights in distant water fisheries, and free access to fishing for domestic fisheries. More broadly, market promotion and price maintenance are also a small part of fishery subsidies. Trade experts have pointed out that all subsidies have led to the mistaken deployment of resources and distorted the market. Subsidies damage the sustainable use of fishery resources. Subsidies have worsened existing problems in the management of fishery resources. Simply, subsidies encourage fishers and enterprises to enter a fishery but do not encourage withdrawal. To ensure the sustainable use of fishery resources, traditional fishery subsidy system reform must be implemented; in particular, one has to take into account a reduction in subsidies that are unfavorable to the environment. It is necessary to carry out further research on subsidies, including how to use effective methods to evaluate the effect of subsidies on fisheries. By establishing some rules and laws, subsidies that are used to increase fishing effort and capacity can be eliminated, reduced, or strictly controlled and subsidy policies can be reasonably formulated to maximize economic benefits and reduce harm generated to the environment to a minimum.

8.5

Measures of Fishery Resource Management

8.5.1

General Measures of Natural Resource Management

The contents and means of natural resource management vary with the differences in purpose. Natural resource management can be divided into administrative management, economic management, legal management, planning, demonstration guidance, and so on (Qu 2011).

8.5.1.1

Administrative Management of Natural Resources

The administrative management of natural resource is the most basic mode of natural resource management. Administrative management refers to government administrative management carried out by a government in the name of the country. The government or the natural resource management department draws support from administrative powers to realize the sustainable exploitation and utilization of natural resources and the environment by fulfilling specific management functions. For example, China’s Fisheries Law clearly endows competent fishery administrative departments with administrative management power over fishery resources and fishery waters. The means and measures of administrative management mainly include the formulation of policies, the issuance of regulations, review and approval,

8 Fishery Resource Management and Policy Formulation

391

the signing of administrative contracts, inspection and supervision, administrative punishment, commendation and awards, and so on. The main characteristics of administrative management are as follows: 1. Authority—The administrative management of natural resources mainly depends on the coercive force and deterrent force of administrative power to realize the management function. 2. Directness—The administrative instructions for managing natural resources directly regulate the behaviors of natural resource occupants, users, and managers and have direct contingency control power. 3. Flexibility—The issuance of administrative instructions to manage natural resources has greater flexibility. Administrative documents, verbal notices, conference communications, and promotional materials are all means of issuing administrative instructions. 4. Gratuitousness—The administrative behavior of the government has the characteristics of gratuitousness and public welfare, and the managed person also needs to obey the government’s administrative instructions. 5. Closed nature—The administrative management of natural resources is generally carried out through an administrative management system for natural resources and has a closed nature. The administrative management of natural resources mainly includes three major functions: planning and macrocontrol, supervision, and monitoring. The planning and macrocontrol function refers to the formulation of corresponding management policies, regulations, and standards by relevant national management agencies, which should be developed according to natural resource management goals and in accordance with relevant national management regulations, and the formulation of natural resource exploitation and utilization plans. The macrocontrol function refers to the coordination and control of management between mutually independent natural resource management departments and the exploitation functions of different regions through the formulation of national and regional natural resource exploitation strategies and corresponding macro policies. The supervision function refers to the effective supervision of the exploitation, utilization (preventing excessive exploitation and utilization of resources), and protection (avoiding destructive exploitation) of natural resources by natural resource management departments, which should be conducted according to natural resource management regulations, and the punishment of behavior that violates natural resource management regulations. The monitoring function refers to the monitoring of information such as the quantitative and qualitative change patterns for natural resources and the changing situation in their spatial distribution, with the expectation of seeking reasonable ways to utilize natural resources and formulating reasonable exploitation strategies.

392

8.5.1.2

X. Chen

Economic Management of Natural Resources

The economic management of natural resources refers to the use of the regulatory power of economic levers to guide and regulate the economic behavior of managed objects and realize the sustainable use of natural resources. Economic management comprises indirectness, delayed effect, openness, and spontaneity. 1. Indirectness—Indirectness refers to the need to draw support from the intermediary role of economic benefits to realize the economic management of natural resources. 2. Delayed effect—A delayed effect is caused by a lag in economic leverage. The realization of economic management goals requires guidance, and there is a gradual realization process. 3. Openness—The openness of natural resource management refers to the economic management of natural resources not being limited to administrative management but requiring the common concern and participation of all of society. 4. Spontaneity—Spontaneity refers to the economic management of natural resources being guided by economic interests to enable the management objects to consciously follow the operating mechanism of the market economy, realizing the sustainable use of natural resources. Commonly used means of economic management of natural resources include investment, credit, taxation, subsidies, and price adjustments, and the main contents of the economic management of natural resources include rights and interests, industry, and assets. 1. Management of rights and interests—The management of rights and interests does not only lie in the protection of property rights but also includes the management of the reasonable occupation and allocation of natural resource property rights and gains and the guarantee of the interests of different natural resource property rights subjects. 2. Industrial management—The industrial management of natural resources refers to the process of protecting, restoring, regenerating, renewing, proliferating, and accumulating natural resources through social input in accordance with the mode of industrial organization. The protection of fishery resources and so on all belong to the domain of industrial management. The industrial management of natural resources is not only a process of natural resource reproduction but is also a process of natural resource economic reproduction. 3. Asset management—Natural resources are not only important resources but also important assets. The asset management of natural resources mainly includes market management, price management, rent management, and taxation management. The government improves the economic and social efficiency of the exploitation and utilization of natural resources by improving asset management systems for natural resources.

8 Fishery Resource Management and Policy Formulation

8.5.1.3

393

Regulatory Management of Natural Resources

The regulatory management of natural resources refers to the realization of the sustainable use of natural resources through the formulation and execution of a regulatory system for natural resources and the determination of codes of conduct that are generally followed by society to effectively protect natural resources. The legal management of natural resources is the main mode of resource management under the market economy mechanism. The establishment and soundness of a regulatory system for natural resources has important significance for realizing the sustainable use of natural resources.

8.5.1.4

Zoning and Planning Management of Natural Resources

Reasonable zoning and planning for the exploitation and utilization of natural resources according to what is suitable for the local conditions are universally used ways of management in various countries. For example, China’s current fishery law have all established planning systems for the development and utilization of natural resources. The Measures for the Use of Sea Areas of the People’s Republic of China ensures the reasonable deployment, exploitation, and utilization of resources in sea areas by implementing regional functional divisions in the inshore sea areas of China.

8.5.1.5

Demonstration Management of Natural Resources Utilization

In the process of the exploitation and utilization of natural resources, establishing experimental demonstration areas and popularizing high-tech science and technology are effective paths for guiding natural resource users to efficiently and sustainably utilize natural resources.

8.5.2

Fishery Resource Management Methods and Measures

According to the concept of fishery resource management, the biological natural disposition and goods attributes of fishery resources, and economic and social features, fishery management methods and measures can be roughly divided into three categories (Chen 2014).

394

8.5.2.1

X. Chen

Open (Free) Access to Fishing and Limited Access to Fishing

1. Open (free) access to fishing—The major fishery countries in Europe and the Americas have generally acknowledged that fishery resources are the common property of humans. Based on this concept, European and American countries generally hold in esteem the management concept and measures of free access to fishing and oppose the implementation of fishery management measures that limit access to fishing such as fishing permits, fishery rights, and so on. Those who hold the management concept of free access to fishing believe that fishery resources are the common property of humans, industrial activities should be public, and any citizen can freely enter fishery production activities. According to this concept, fisheries management can only implement indirect control measures related to issues such as fishing seasons, fishing grounds, and fishing gear (establishment of closed fishing areas and closed fishing periods) and output management measures to control the total catch. 2. Limited access to fishing—Management measures for limited access to fishing are established on the idea that fishery resources are the property of regional citizens or social groups. The management measures for limited access to fishing mainly include taxation (taxation of catches or fishery producers); the establishment of a fishery license system to control the number of fishing vessels and the number of new fishers; and the establishment of fishery rights and exclusive rights systems, and so on. 8.5.2.2

Input and Output Control Management

According to the production theory of microeconomics, the fishery fishing and production process can be divided into input control and output control management measures. Input control management refers to a management mode that controls the human power, material resources, funds, and so on that are put into the fishery production process during the fishery resource exploitation and utilization process. The management system mainly involves a fishing license system, and the management measures stipulate fishing periods and limits on fishing grounds, operating hours, number of fishing vessels, fishing gear, the crew, and so on. Output control is a management mode that controls the fishing intensity by controlling the catch output, and the main management measures are total allowable catch systems, individual catch quota systems, individual transferable catch quota systems, single-vessel catch limit systems, and so on.

8.5.2.3

Passive and Active Fishery Management Measures

Traditional management measures, such as closed fishing periods, closed fishing areas, juvenile fish protection areas, minimum fishing body lengths and mesh sizes, limits on the types of net gear and operating modes, and so on, can be regarded as

8 Fishery Resource Management and Policy Formulation

395

passive fishery management measures. Passive fishery resource management measures are easier to implement, but there is a lack of a clear functional relationship between fishery resource management effects and fishing deaths, and it is very difficult to quantitatively analyze the effect of different management measures on fishing deaths. Typical active fishery resource management measures include limits on fishing effort and quota fishing, and so on, which are mainstream for modern fishery resource management. Active fishery resource management measures are flexible, and managers control the catch and fishing effort by adjusting the management intensity according to the dynamic changes in fishery resources, causing the management intensity to adapt to changes in fishery resources.

8.5.3

Input and Output Management Methods

8.5.3.1

Input Control Management

Prior to the 1980s, fishery management in various countries around the world basically implemented input control management, and the objects of management were fishing vessels, fishing gear, and fishing grounds. The management cost of input control is lower than the management cost of output control, and the management measures are also easier to implement, but the management effect is difficult to determine.

Fishing Gear and Fishing Method Management The geographical conditions, resource conditions, and economic base of sea areas vary greatly, resulting in diverse marine fishing gear. For example, the fishing gear mainly used in China’s inshore fisheries include trawl nets, stow nets (fixed fishing gear), gill nets, purse seines, fishing tackle, and so on. Trawl nets are used mainly in the Yellow and Bohai seas. In the East China Sea, bag seines are widely distributed in the Jiangsu and Zhejiang region. The main fishing gear in the South China Sea is gill nets, trawl nets, and purse seines, and tackle fisheries are also comparatively developed. The effective management of fishing gear is an important way to protect marine fishery resources. The purpose of fishing gear management is to (1) reduce the catch of juvenile fish and parent fish resources, protect recruitment groups, and avoid the waste of resources by limiting net mesh size and operating areas and adjusting the ratios of different net gear; (2) improve the selectivity of fishing gear and reduce the bycatch rate; and (3) ease and coordinate the contradictions between mobile fishing gear and fixed fishing gear in the same fishing ground.

396

X. Chen

Gill Net Management A gill net is fishing gear that catches the objects of fishing by way of mesh thorns or enmeshed netting. The operating principle is to connect hundreds of nets into a train of nets in a ribbon shape, throw it into the water, cut off the fish migration channel, and use barbs on the nets to catch fish. The selectivity of a gill net is strong. If the mesh is appropriate, there will be less harm to fish resources. If the mesh is too small, there will be substantial harm caused to fishery resources, with the net becoming a “wall of death” for fish. The height of a gill net must be determined according to the habitat (water layer) of the main object of fishing. Arbitrarily increasing the height of the net gear will expand the object of fishing and increase the mixed catch and bycatch rates. Because large-scale drift gill nets in high seas often generate marine animal bycatches, such as sea turtles, seabirds, and dolphins, the United Nations passed a resolution in 1989 that prohibits the operation of large-scale drift gill nets in high seas; the resolution took effect on January 1, 1993. Coastal fishery countries also have clear limits on drift gill net fisheries. To effectively manage marine drift gill net fisheries, the Japanese government has stipulated that fishing vessels with a gross tonnage of more than 10 tons engaged in drift gill net fisheries should declare and fill out a catch report in advance. The department of fisheries has the authority to stop the fishing operations of drift gill net fishing vessels at any time. Purse Seine Management A purse seine is fishing gear for catching clustering fish by way of bounding. Most purse seines are equipped with a light lure or sprayed with fish-baiting scent; purse seines represent one of the important types of fishing gear. The main object of purse seine fishing is pelagic fish, and the net gear is large in scale, the yield per net is high, the selectivity in catching fish species is strong, the production technology requirements are high, and a large investment is required. The management of purse seines involves closed fishing periods and closed fishing area systems, the strict execution of license systems, and the implementation of fishing quota systems. Trawl Net Management A trawl net is fishing gear that forces the objects of fishing to enter a net bag by way of dragging. The operating mode is divided into two types—single trawling and pair trawling. Trawling operations have a wide scope and high efficiency, and they mainly catch demersal fishes, but there are also middle-layer trawl nets that specialize in catching pelagic fishes. Trawl nets are the most important fishing gear in marine capture fisheries, and the catch accounts for approximately 40% of the world’s total marine catch. In China, trawl net fishing yield accounts for more than 45% of the total marine fishing yield. The main reasons for the development of trawl net fisheries are the vast waters of the coastal continental shelf and the flat seabed, which are suitable for trawling operations.

8 Fishery Resource Management and Policy Formulation

397

A trawl net is typical mobile fishing gear. In inshore and coastal operations, it easily generates fishery disputes with fixed nets, drift gill nets, and stow nets. Second, trawl nets with overly small meshes have a considerably high juvenile fish catch rate, damaging resources more greatly. According to incomplete statistics, among the economic fish caught by trawl nets, the catch of juvenile fish accounts for more than 50% of the total catch. Trawl net operations have fatal weaknesses that damage fishery resources, damage the marine ecological environment, and consume a lot of energy; therefore, trawl nets are severely restricted by fishery management. Trawl net management measures mainly include license systems that limit the power of fishing vessels and main engines; fishing quotas and systems that limit the catch; systems that formulate closed fishing periods and closed fishing areas based on the reproductive periods of the objects of trawl net operations; stipulations on fishing grounds and fishing periods and regulation of fishery disputes; systems that limit the net mesh and the ratio of juvenile fish, and so on. Management of Fixed Fishing Gear (Stow Nets) and Longline or Jigging Fisheries A stow net is a fixed bag-shaped fishing net that is set in position in the migration channel of fish, shrimp, shellfish, and so on and utilizes the ocean current to carry out fishing. Fixed nets have poor selectivity and are small-scale nets with low investment and a simple operation technique; stow nets are commonly used fishing gear for mass fisheries. The advantage of stow net operations is energy conservation, but the disadvantage is the high kill rate of resources, especially juvenile fish. Longline or jigging comprises fishhooks, fishing line, and bait; it is fishing gear that lures the object of fishing to devour the fishing tackle for the purpose of being caught. This fishing method is suitable for catching fish that have scattered habitats with a high quality of catch, and it is beneficial to resource protection. Among them, longline fishing and squid jigging account for the largest proportion.

Management of Fishing Grounds and Fishing Periods In the vast ocean, the distribution of fish resources is comparatively random, and the difference in the abundance of fishery resources is comparatively large in different periods (fishing periods) and areas (fishing grounds). In a state of free fishing competition for fishing ground utilization, each fishing vessel will concentrate on fishing grounds with abundant resources and high catches. With the increase in fishing vessels, the per unit fishing vessel productivity in fishing grounds with high catches gradually decreases to be equal to that in fishing grounds with lower productivity; therefore, fishing grounds with lower productivity are exploited. With the further exploitation of fishing grounds, the productivity of fishing grounds and fisheries will be reduced to close to that of fishing grounds with lower productivity, and low-productivity fishing grounds will also gradually be exploited. As a result, the scope of the utilized fishing grounds continues to expand, the resources are overutilized, and the economic benefits per unit fishing vessel also continue to

398

X. Chen

decrease. Therefore, moderate utilization of fishing grounds and strengthening the management of fishing grounds and fishing periods, especially the management of spawning grounds and fishing grounds for juvenile fish, are of significance for the sustainable development of marine fisheries. The main measures for the management of fishing grounds and fishing periods are the establishment of closed fishing areas and a system of closed fishing periods, as well as a closed summer fishing season. During the closed fishing season in summer, everyone is prohibited from catching fish in the stipulated sea area in a stipulated period every year, which plays a very effective role in protecting the growth of fish. For example, China has implemented a comprehensive closed fishing season in summer in the Yellow Sea, Bohai Sea, East China Sea, and South China Sea.

Fishing Vessel Management Fishery resources are typical common pool resources. Controlling the power, number, and operation scale of fishing vessels is of great significance for the sustainable use of fishery resources. The goal of fishing vessel management is to control fishing intensity (horsepower and number of fishing vessels), operation scale, and so on. The main modes of fishing vessel management are fishing license systems. Fishery license systems are typical input control management systems that can better control the number of fishing vessels with access to fishing and prevent overfishing. However, due to the enlargement of fishing vessels, improvement in the fishing efficiency of fishing vessels, and low monitoring intensity, it is often difficult for fishing vessel license systems to obtain ideal management effects. Viewed from an economic perspective, fishery license systems bring excess investment to fishing technology.

Economic Analysis of Input Control Management Using the Schafer-Gordon bioeconomic model as an example, input control management methods are divided into three situations for quantitative analysis. Limits on Fishing Effort A fishery management method that limits fishing effort can be represented using Fig. 8.10. In a fishery with free access to fishing where there is no limit on fishing effort, the fishing effort continuously increases until arriving at the bioeconomic equilibrium point E0. If management measures to limit fishing effort are implemented, a change occurs to the cost curve TC0, and it becomes curve TC1 (at this time, it is assumed that the fishing effort is limited to the F1 level); then, the fishery can obtain the rent ab (profit). Through the aforementioned management measures, that is, a decrease in

8 Fishery Resource Management and Policy Formulation Fig. 8.10 Bioeconomic analysis of limiting fishing effort. TC1 Cost curve after fishing effort is limited, TC0 Original cost curve, TR Total revenue, E0 Bioeconomic equilibrium point

399

Revenue

TC1

b

TC0

E0 a

TR F1

F0

Effort

fishing effort from F0 to F1, the economic rent can be increased from 0 to the value ab. Limiting the Application of the Fishing Gear and Fishing Methods Fishery management measures that limit the application of fishing gear and fishing methods, as well as their management effects, can be represented from two aspects— limiting fishing technology, which reduces fishing efficiency and therefore decreases the revenue of the fishery, limiting fishing gear and fishing methods, which increases the cost of fishing. We can use Fig. 8.9 to represent this scenario. From Fig. 8.9, when the application of fishing gear and fishing methods are limited to reduce fishing technology, the fishery revenue curve moves downward from TR0 to TR1; if the fishing cost TC0 is unchanged, then the bioeconomic equilibrium point moves from E00 to E01, its corresponding fishing effort also decreases from F00 to F01, and the fishing effort decreases by F00
F01. When limiting fishing gear and fishing methods increases the fishing cost, then the cost curve increases from TC0 to TC1; if the revenue curve for the fishery remains unchanged, then the bioeconomic equilibrium point moves from E00 to E10, its corresponding fishing effort also decreases from F00 to F10, and the fishing effort decreases by F00
F10. When limiting fishing gear and fishing methods both decreases the fishing technology and increases the fishing cost, then changes occur to both the fishery revenue curve and the cost curve, its bioeconomic equilibrium point moves from E00 to E11, the corresponding fishing effort decreases from F00 to F11, and the amount of decrease is F00
F11. Therefore, the use of fishery management methods that limit the application of fishing gear and fishing methods has certain effects on reducing fishing effort and protecting fishery resources. Levying Taxes on Fishing Effort In a fishery in which taxes are levied on fishing effort and CNY a in tax is obtained per unit fishing effort or CNY a in tax is obtained from each fishing vessel (assuming that the fishing vessels are the same), then the total cost curve moves from TC0 to TC1, and total cost TC1 ¼ TC0 + a  F. The corresponding bioeconomic equilibrium

400 Fig. 8.11 Bioeconomic analysis of levying taxes on fishing effort. TC0 Original cost curve, TC1 Cost curve after limiting, E0, E1 Bioeconomic equilibrium points

X. Chen

Revenue

TC1

E1

TC0

E0

aF

TR F1

Fig. 8.12 Levying taxes on fishing effort. AVP Average revenue curve, MVP Marginal benefit curve, C Average and marginal cost curve, E0 Bioeconomic equilibrium point, E1 Maximum economic yield point

Fmsy

F0

Effort

Price

Effort

point moves from E0 to E1, the fishing effort also correspondingly moves from F0 to F1, the fishing effort reduces by F0
F1, and the tax obtained is a  F1. The bioeconomic equilibrium point E1, where TC1 intersects with TR, determines the size of the tax (Fig. 8.11). In the above, we have analyzed the bioeconomic equilibrium point and the changing situation in the corresponding fishing effort after levying taxes per unit fishing effort; how, then, do we determine the optimal amount of tax (a) per unit fishing effort? We use the average revenue AVP and marginal benefit MVP and so on for the input in fishing effort below to determine the value of a (as in Fig. 8.12). In Fig. 8.12, AVP is the average revenue curve, MVP is the marginal benefit curve, C is the average cost curve, and C0 is the average cost curve after taxation. When the average cost and the average revenue are equal, that is, at point E0, the fishery has reached the bioeconomic equilibrium point. When the average cost and the marginal benefit are equal, that is, at the point E1, the fishery has reached the maximum sustainable economic yield. In the case of free access to fishing, through the means of levying taxes on fishing effort, the bioeconomic balance point moves from point E0 toward point E1, as the management goal and benchmark. In Fig. 8.12, a straight line is drawn that passes through E1 and is parallel to the AVP; then, this line intersects with the price axis at point C0 , and the difference between C0 and C is the amount of tax that should be levied per unit fishing effort. By taxing the fishing effort, the cost curve moves

8 Fishery Resource Management and Policy Formulation

401

upward to C0 ; in a case of bioeconomic equilibrium, the fishing effort at this time is at the F1 level. The country or a certain fishery organization has obtained a  F1 in benefits accordingly, and the area is CC0 E1g.

8.5.3.2

Output Control Management Methods

Output control management methods were used as early as the 1930s. However, only after the 1980s was it popularized for use in advanced fishery countries in Europe and the Americas. Due to the limitations of fishery resources and economic, social, and other factors, it is still difficult for some countries to carry out output control management. Japan and South Korea gradually implemented output control management only in the late 1990s. The theoretical basis of output control management is the MSY and involves implementing fishery management by setting fishing quotas and controlling catches. The main system for output control management is a total allowable catch system and individual catch quota systems, individual transferable catch quota systems, and single-vessel catch limit systems extracted from it.

Total Allowable Catch (TAC) Summary of TAC Systems Total allowable catch systems, that is, TAC systems, refer to setting the maximum yield of a specific fish species or at a fishery in a specific area that can be caught within a certain period (usually 1 year) according to the regeneration capacity of fishery resources, especially the fishing intensity that the current resource level can bear, and taking into account social, economic, and other factors. In practice, such management measures directly control fishing vessel or fleet catches and supervise catch or landing quantity. Once the actual total catch of all fishing units reaches the set total allowable catch, that fishery is closed. Compared with output control systems, total allowable catch systems have the following advantages: (1) if the total allowable catch is set reasonably, this mode can control the catch at a level appropriate to the resource amount and protect the resources from overfishing; and (2) after the implementation of the total allowable catch, because free fishing is adopted, the degree of competition is more intense than before the implementation of the TAC system, and a shortening of the catchable period may appear. Some of the fishers may face a reduction in the economic benefits of production due to poorer competitiveness and be forced to withdraw from the fishery, which is conducive to reducing the fishing effort to a certain extent. However, due to its imperfections, the implementation of a TAC system also has the following disadvantages. (1) The economic benefits of fishers who continue to engage in fishery production may increase, and such an increase in benefits will promote an increased investment by fishers or attract new personnel to join the fishery, causing the fishing effort to increase. Therefore, in theory, the

402

X. Chen

implementation of a TAC system can play a role in protecting fishery resources, but if the system is not managed properly, such a decrease in fishing effort will be temporary and will not fundamentally reduce the fishing effort. (2) After the total allowable catch has been determined, in order to capture as much of the share in total allowable catch as possible, the fishers compete with each other to increase input for increasing or improving fishing vessels, fishing equipment, and so on to increase their fishing efficiency, which may lead to vicious competition wherein the fishers blindly increase investment to increase fishing capacity. If the system is not managed properly, conflict may occur between some fishers regarding shares. Therefore, this way of implementing a TAC system will cause the fishers to compete to capture the limited allowable catch, that is, it causes fishers to fish competitively; this is the greatest disadvantage of this implementation mode. (3) In addition, under such competition, the catchable period is shortened, which may create a large amount of catch to come ashore in a concentrated manner in a short period of time, resulting in oversupply. If the catch is not handled properly, the loss after capture will increase.

Necessary Conditions for the Implementation of a Total Allowable Catch System Through the previous introduction, we know that to implement a TAC system, the total allowable catch based on fishery statistics needs to be determined in terms of fishing mortality and that the total allowable catch needs to be adjusted promptly according to the features and changing situation of the population. To complete these two tasks, it is necessary to conduct scientific surveys on fishery resources, understand their biological features, obtain reasonable and credible data, use reasonable mathematical models, and use scientific fitting models and methods to accurately evaluate the MSY of the resources. Resource surveys and assessments must be continuous or periodic to facilitate the ability to make timely adjustments to target values for the management of the total allowable catch. In addition, there must be sufficient fishery supervision power and sound fishery laws, rules, and regulations to facilitate the ability to effectively supervise and inspect the catch situation and to ensure the smooth implementation of the system. In fisheries where the fish population is not complex and the amount of bycatch is small, it is easier to use a TAC system. Generally, to implement a TAC system, it is necessary to have the following conditions. 1. Continuous resource surveys and monitoring—Output control systems mainly control the total catch; therefore, a reasonable determination of the allowable catch for fishing is needed. If the set total allowable catch is higher than the bearing capacity of the resources, the resources will deteriorate and decline day by day, thereby failing to have a protective effect on the resources; on the contrary, if the determined total catch is lower than the sustainable yield of the resources, there will be economic loss and resource waste. Therefore, the implementation of a TAC system requires a full understanding of the features and changing situation of resource populations, multiyear fishery statistical data in

8 Fishery Resource Management and Policy Formulation

403

terms of catch, fishing effort, and fishing mortality, and timely adjustment of the total allowable catch according to the features and changing situation of the populations. Therefore, there is a need to carry out a continuous survey and monitoring of fishery resources. Taking New Zealand as an example, the total allowable catch in New Zealand is determined using the following procedures. First, a fishery resource assessment team composed of scientists invited by the government and representatives from the fishery community, environmental protection groups, and recreational fisheries publicly assess the status of resources and submit TAC recommendations to the government. Then, the recommendations are discussed by the Fisheries Committee, with the Ministers of Agriculture and Fisheries have the final say in determining the total allowable catch. 2. Reliable fishery statistics system—In a fishery under a TAC system, whether or not the TAC is reasonably set is directly related to the operation of the fishery. If the TAC can be applied reasonably, the medium- and long-term operation of a fishery can stabilize, but the actual situation of the operation should be considered in the short term. To limit the disruption of the operation of the fishery, the total allowable catch is set to ensure the sustainable development of the fishery. Generally, it requires at least 5 years of actual catch statistical data to develop a TAC system; therefore, a reliable fishery statistics system is required. Taking Japan as an example, since the implementation of a TAC system in 1997, Japan has stipulated that fishers should regularly report the results of catches to the fishery management department. Furthermore, as a way to know the status of a catch, reports on catch amounts ashore are collected at the ports where the catch landed. To ensure the accuracy of the reports on catches, Japan has also adopted certain guarantee measures to prevent violations of reporting obligations and false reporting. 3. Strong fishery monitoring system—In a fishery that is under a TAC system, when the catch reaches the total allowable catch, the capture of that fish species is completely banned to protect the resource. To reach this goal, a strong fishery monitoring system is needed to supervise and manage catches. If there is not a strong fishery monitoring system, then it is very difficult to monitor catches and thus impossible to accurately know the true catch situation and to effectively implement the total allowable catch system. 4. The principle of just and reasonable allocation of catch quotas—In a fishery managed under a total allowable catch system, as conditions mature, an individual catch quota system and an individual transferable quota system can be implemented according to the changing trends in biological resources and fishery conditions. This requires that the total allowable catch be divided into certain shares to give to the fishers or fishery units. When deciding on the allocation of quotas, the principle of just and reasonable quota allocation must be adopted to gain the approval of large numbers of fishers, thereby reducing the degree of difficulty in the implementation of quota management and increasing the enthusiasm of fishers for fishing according to law. In principle, the allocation of quotas should first consider the extent of the fishery’s influence on the fishers’ economy and the fishers’ traditional fishing rights. Taking New Zealand as an example,

404

X. Chen

quotas are allocated according to the historical extent to which each individual or production unit has participated in the fishery. It is determined by the competent fishery authority according to the average value of a fisher’s catches of a certain fish species in the past 3 years or according to the average value of the catches of any two out of 3 years to determine the quota. In general, no one may own (whether allocated or through transfer or lease or a combination of these methods) more than 35% of the total amount of individual transferable quotas for any individual quota fishery in New Zealand fishery waters, nor may one own 20% of the total amount of individual transferable quotas for any quota fishery in any quota management area.

Individual Catch Quota System Individual catch quota systems divide the annual total allowable catch into a number of catch quotas on the basis of TAC as a type of property that is allotted to fishery enterprises, fishermen, or fishing vessels. Fishery producers can use the aforementioned quotas in 1 year and stop catching that fish species after exceeding the fishing quota. The implementation of an individual catch quota system requires the establishment of an established fishery management agency and monitoring system for fishing operations. Individual catch quota systems are conducive to the fair and just utilization of resources, and fishing goods go to market in a balanced manner. An individual catch quota system grants each fisher, fishing vessel, or fishery company the right to fish for a certain amount of fish within a determined period and a designated area. Because the total fishing quota is determined once a year, the annual catch quota for the same fisher or fishery fleet is also different. When an individual catch quota system is first implemented, fishery managers face many challenging issues, such as whether to buy and sell or to allocate the right to fishing quotas and how to determine individual catch quotas and the duration for which the quota owner has fishing rights. The way these problems are solved has a great effect on the economic, social, and management effects of individual catch quota systems. The initial allocation of individual catch quotas is usually based on the historical records of catches by individuals or groups in the fishery, but the final outcomes and effects of the allocation vary greatly. The fair, open, and just reasonable allocation of initial fishing quotas is accepted by fishers, but this type of allocation requires a lot of energy. Individual catch quota systems are effective institutional arrangements for controlling overfishing, eliminating disorderly competition, and increasing fishery profits, but there are also many disadvantages to the system, such as management problems with the initial allocation of quotas and supervision of fishers’ compliance with the quotas. For the vast majority of fisheries that have implemented an individual catch quota system, the system can keep the total catch at or below the total allowable catch level set by the management agency. Both theory and fishery fishing practice have proven that individual catch quota systems can effectively ease disorderly fishing and overfishing competition by fishers. However, not all fisheries

8 Fishery Resource Management and Policy Formulation

405

that implement an individual catch quota system can effectively eliminate disorderly fishing and overfishing competition.

Individual Transferable Catch Quota System Economists have mostly accepted the following viewpoint: If a reform does not harm anyone’s interests but benefits some people, then this reform is worth popularizing and represents progress. This criterion was proposed by the economist Pareto in the early twentieth century and is usually referred to as the Pareto criterion. The Pareto criterion has been widely applied in the analysis of government public policy. Individual catch quota systems have realized the fairness and justness of fishery resource exploitation and utilization but inhibit the economic efficiency of fishery production. There is a difference in the production technology of fishers, and the economic efficiency of production also differs. Under a market economy system, fishers who have individual catch quotas will sell quotas to fishermen with higher economic means when their economic means are low; in this way, some people’s income increases but not at the expense of other people’s income. The result of this evolution in fishery management systems is the birth of individual transferable catch quota systems. Individual transferable catch quota systems evolved from individual catch quota systems. Under an individual transferable catch quota system, the catch quota is regarded as a type of property, and like other property, it can be transferred, sold, or exchanged. The action mechanism of an individual transferable catch quota system is basically the same as that of an individual catch quota system, and the problems generated are also basically similar. The role of an individual transferable catch quota system can effectively eliminate disorderly competitive fishing of fishery resources. The implementation of an individual transferable catch quota system shows prior effective management for limiting catches. The actual catches in many fisheries that have implemented individual transferable catch quota systems are equal to or lower than the total allowable catch. After the implementation of an individual transferable catch quota system in Canada, sable fish fisheries no longer experienced catches that exceeded the TAC. The main reason for the failure of individual transferable catch quota systems is the low strength of fishery management. Fisheries that implement an individual transferable quota (ITQ) system have other additional fishery management measures, for example, minimum mesh sizes, minimum fishing specifications, closed fishing areas, closed fishing periods, and other limiting measures.

Single-Vessel Catch Limit System Single-vessel catch limit systems can be divided into three types: (1) a single-vessel catch limit system that limits the catch of each voyage within a certain period; (2) a per voyage catch limit system that limits the per voyage catch but does not limit the

406

X. Chen

number of fishing vessels; and (3) a weekly (monthly) catch limit system that limits the catch of each fishing vessel in a certain period but does not limit the number of fishing vessels or the number of operating days in a year or a season. Single-vessel catch limit systems are often used in combination with various fishery management systems. When used in combination with fishing license systems, the management effect is similar to that of an individual catch quota system. At this time, the operating voyages for a single vessel should be limited to avoid fishery producers increasing fishing intensity (increase voyages); only then can the individual catch quota for each fishing season be effectively controlled. In theory, singlevessel catch limit systems can balance the annual catch and fishing effort and reduce the degree of disorderly competition in a fishery. If a weekly (daily or monthly) catch limit system is used, the producers tend to use small fishing vessels, which is conducive to the miniaturization of fishing vessels. If a voyage catch limit system is used, the producer may reduce the number of operating days with a single voyage and increase the number of voyages. The producers also tend to increase the speed of the vessel, shortening the navigation time from the fishing ground to the fishing port and increasing the fishing intensity. Single-vessel catch limit systems are more conducive to small-scale producers and conducive to the fishing operation mode of an owner who is concurrently the captain, and, thus, is conducive to protecting the traditional lifestyle of fishers.

Economic Analysis of Output Control Management We use the Schafer-Gordon bioeconomic model as an example to carry out quantitative analyses on output control management methods in two situations.

Limiting the Catch Figure 8.13 represent a fishery that limits the catch (assuming that TAC is used). TC in the figure is the cost curve, and the original revenue curve is TR0; after adopting a TAC system, the revenue curve changes to 0abd. This way, the bioeconomic Fig. 8.13 Bioeconomic analysis of limiting the catch. TC Cost curve, TR0 Original revenue curve, TR1 Revenue curve after management, E0, E1, Bioeconomic equilibrium points

Revenue

Effort

8 Fishery Resource Management and Policy Formulation

407

equilibrium point will move from the original point E0 to the point E1, but the corresponding fishing effort will decrease from F0 to F1, and the amount of decrease is F0
F1, thereby effectively reducing the fishing effort and protecting the fishery resources.

Levying Taxes on Catches In a fishery in which the catch is taxed (Fig. 8.14) and CNY 1 in tax is levied on each unit of catch, the total revenue curve moves from TR0 to TR1, and the total revenue is TR1 ¼ TR0
t  Y ¼ ( p
t)  Y, wherein Y is the catch and p is the catch price. Its corresponding bioeconomic equilibrium point moves from E0 to E1, the fishing effort also correspondingly moves from F0 to F1, the fishing effort decreases by F0
F1, the tax obtained is T, and the amount of taxation per unit catch is t ¼ T/Y1. In the aforementioned scenario, we analyzed the changing situation in the biological economic equilibrium point and the corresponding fishing effort after taxation is carried out on the catch. How, then, do we determine the optimal amount of tax t* per unit catch? In the same way, we use the average revenue AVP and marginal benefit MVP to determine the value of t (Fig. 8.15). In Fig. 8.15, AVP is the average revenue curve, MVP is the marginal benefit curve, C is the average cost curve, and AVP0 is the average revenue curve after taxation. Before taxation, when the average cost is equal to the average revenue, that is, at E0, the fishery has reached the bioeconomic equilibrium point. When the average cost is equal to the marginal benefit, that is, at E1, the fishery has reached the maximum sustainable economic yield. In the same way, we use E1 as the ultimate goal after taxation, namely, move the bioeconomic equilibrium point from E0 to E1 through taxation. In Fig. 8.15, draw a straight line that passes through the E1 and is parallel to the AVP; this line intersects with the price axis at p, and t* is the amount of tax per unit catch. By taxing the catch, the revenue curve moves downward to AVP0 ; in the case of bioeconomic equilibrium, the fishing effort at this time is at the F1 level. The country or a certain fishery organization has obtained t*  F1 in benefits accordingly, and the area is cpE1g. Fig. 8.14 Bioeconomic analysis of levying taxes on catches. TC Cost curve, TR0 Original revenue curve, TR1 Revenue curve after management, E0, E1 Bioeconomic equilibrium point

Revenue

Effort

408

X. Chen Price

Effort

Fig. 8.15 Method for determining the amount of taxation to levy on catches. AVP Original average revenue curve, MVP Marginal benefit curve, AVP´ Average revenue curve after management, C Average and marginal cost curve, E0 Bioeconomic equilibrium point, E1 Maximum economic yield point

8.5.3.3

Fishery Rights System

Fishery rights refers to the rights to exclusively occupy fishing grounds and operate fisheries. Fishery rights can be divided into common fishery rights, fixed fishery rights, and zoning fishery rights. Japan and South Korea have widely implemented fishery rights systems. Fishing rights have the following legal connotations. First, fishery rights are rights approved by the administrative unit. Second, the fishery behavior formulated by fishery rights is limited to specific waters. Third, fishery rights have a limiting power on the means of production used in fishery behavior. Finally, fishery rights are exclusive. The Japanese fishery rights system is now used as an example for a brief description. Common fishery rights are fishery rights in a specific place for fisheries with marine algae and shellfish as the objects and the operation of small-scale fixed nets, drag nets, nonmotorized ship-to-ground boat seines, and so on. Common fishery rights only approve local fishery associations to operate. This means that the fishery association or organization is the main body that possesses the main fishery rights. According to the rules for the exercise of fishery rights, members of the association, that is, fishers, are allowed to utilize the fishing grounds. Zoning fishery rights refers to the right to operate in the cultivation industry. Among the regional fishery rights, specific fishery rights (rights to develop shellfish and marine algae, block farming, and so on) are protected through business licenses to local fishery associations and organizations, and other regional fishery rights are protected via operator licensing, which determines a certain priority order based on whether or not a fisher is local or whether or not one has experience in the cultivation industry. The division of fishing grounds allows more members of the association to operate this type of cultivation industry, and it seeks to successfully solve issues regarding the common utilization of fishing grounds by allowing local fishery associations and organizations to become fishing license holders.

8 Fishery Resource Management and Policy Formulation

409

Fixed fishery rights refers to the right to operate a fixed fishery. To exclude landlords from possessing a fishing ground, licenses are issued to operators. However, in terms of the priority order for approval, local fishery associations and organizations and local fishermen take first place as legal persons who make up the members. Fixed fisheries require a large number of fishery practitioners whose interests are influenced by the geographic conditions of the fishing ground. The priority purpose is to allow local fishermen to enjoy the benefits of fixed fisheries.

8.5.3.4

Integrated Fishery Management

Fishery production is a complex production system. Therefore, the usual fishery management systems do not use input control management or output control management alone but implement integrated fishery management. Integrated fishery management is an organic combined use of input control management and output control management measures. Furthermore, the government raises fishery producers’ awareness of autonomous fishery management through fishery legislation and macro decisions that actively support the government’s input-output control management behavior.

8.6

Ideas for the Development and Management of International Fishery Management Systems

8.6.1

International Fishery Management System

8.6.1.1

Evolutionary Process of Fishery Management Systems

Prior to the nineteenth century, the goal of world fishery management was to coordinate and deal with conflicts of interest between countries, not for resource conservation and management. After the nineteenth century, marine capture fisheries developed rapidly, fishery management problems became increasingly prominent, and various management systems and measures were gradually used. The development history of marine fishery management can be divided into four stages according to the establishment of international fishery management documents (Chen 2014). The first stage (prior to 1958) occurred prior to the convening of the First United Nations Conference on the Law of the Sea. At this stage, no global international fishery management documents or conventions had been established, and only some regional or national fisheries agreements had been reached, such as the Antarctic whaling agreement, and the flounder fishing agreement between the US and Canada. The second stage (1958–1982) occurred from the First United Nations Conference on the Law of the Sea in 1958 to the signing of the United Nations Convention on the Law of the Sea in 1982. The First United Nations Conference on the Law of

410

X. Chen

the Sea formally standardized the framework for the management of fishery resources and production activities and established four conventions—the Convention on the Territorial Sea and the Contiguous Zone, the Convention on the High Seas, the Convention on Fishing and Conservation of Living Resources of the High Seas, and the Convention on the Continental Shelf—which clearly stipulated management measures for fishery activities in territorial seas, the continental shelf, and the high seas. In 1960, the United Nations convened the second Conference on the Law of the Sea, which focused on the width of territorial seas and fishing area. The third stage (1982–1992) occurred from the signing of the United Nations Convention on the Law of the Sea to the convening of the International Conference on Responsible Fishing and the United Nations Conference on Environment and Development in 1992. At the Third United Nations Conference on the Law of the Sea in 1982, the United Nations Convention on the Law of the Sea was established, which regulated the rights and obligations of all countries that engage in marine activities in different sea areas and established the exclusive economic zone system. The fourth stage (after 1992), i.e., the fishery management stage, has focused on responsible fishing and sustainable development. In 1992, the Cancun Declaration was issued at the International Conference on Responsible Fishing held in Cancun, Mexico, which put forward the concept of “responsible fishing,” and great progress and changes have occurred in international marine fishery management therefrom. The concept of “sustainable development” was put forward by the Rio Declaration and Agenda 21 in 1992. In 1993, the Agreement to Promote Compliance with International Conservation and Management Measures by Fishing Vessels on the High Seas (referred to as the Flagging Agreement) was passed. In 1995, the Agreement for the Implementation of the Provisions of the United Nations Convention on the Law of the Sea of 10 December 1982 relating to the Conservation and Management of Straddling Fish Stocks and Highly Migratory Fish Stocks and the Code of Conduct for Responsible Fisheries (referred to as the Implementation Agreement) were passed. After 1995, the International Plan of Action for the Management of Fishing Capacity, the International Plan of Action for the Conservation and Management of Sharks, the International Plan of Action for Reducing Incidental Catch of Seabirds in Longline Fisheries, and The Rome Declaration on the Implementation of the Code of Conduct for Responsible Fisheries were passed.

8.6.1.2

Establishment of a Marine Fishery Management System

Prior to 1958, most fishery resources were the common property of the international community, and fishery management advocated for the freedom of fishing on the high seas. Distant water fishing nations were basically free to go to coastal countries for offshore fishing operations. In 1958, at the First United Nations Conference on the Law of the Sea, four conventions were passed that established a territorial sea system and granted coastal countries sovereignty over the natural resources of their territorial seas. The coastal countries began to enforce jurisdiction over natural resources within their territorial sea. No agreement was reached at the conference

8 Fishery Resource Management and Policy Formulation

411

on issues such as the width of territorial seas and the scope of the fishing area, and the traditional concept of “freedom on the high seas” still continued in the offshore waters of territorial seas. The United Nations Convention on the Law of the Sea, which passed in 1982, standardized the marine exploitation activities of various countries, and the largest effect on fishery exploitation was the establishment of an exclusive economic zone system. Within an exclusive economic zone, coastal countries have sovereign rights over the exploration, exploitation, conservation, and management of all natural resources and have jurisdiction over marine scientific research, marine environmental protection, and artificial islands, facilities, and structures in the exclusive economic zone. In exclusive economic zones, other countries have the freedom of navigation, fly-overs, laying submarine cables and pipelines, and so on. The establishment of the exclusive economic zone system has brought more than 90% of the world’s fishing grounds under the national jurisdiction of coastal countries, and the fishing space on the high seas has shrunk substantially. After coastal countries exercise jurisdiction over the resources of their exclusive economic zones, the fleets of distant water fishing nations can only fish and produce in the exclusive economic zone of coastal countries after reaching an agreement with the coastal countries. The establishment of an exclusive economic zone system has also brought challenges to the management and conservation of fishery resources on the high seas, which has increased the fishing pressure on high seas fishery resources and fishery conflicts between distant water fishing countries and coastal countries. The management of fishery resources such as highly migratory and borderstraddling fish populations has also become a problem.

8.6.2

Modern Marine Fishery Management Ideas

The development of marine fishery management is a process that involves continuously understanding the characteristics of fishery resources and improving the management system; additionally, it is also a process that involves continuously solving newly emerging problems in fishery management. The concepts of “the principle of freedom of the seas,” “territorial sea,” “exclusive economic zone,” and “contiguous zone” all cater to the needs of the marine fishery economy and management in different periods. In the late 1980s, the exploitation and utilization of marine fishery resources peaked, and many traditional fishery resources declined severely. To ensure the sustainable use of fishery resources, many novel modern fishery management ideas and measures continue to emerge (Chen 2014).

8.6.2.1

Responsible Fishing (Fisheries)

The concept of “responsible fishing” first appeared in the Cancun Declaration, and this concept added new ideas to fishery management. The idea of responsible fishing

412

X. Chen

(fisheries) refers to the sustainable use of fishery resources through fishing or cultivation that does not harm the fishery ecosystem and does not affect the quality of fishery resources and aquatic products in the exploitation and utilization of fishery resources and the aquaculture process. The idea of responsible fishing (fisheries) also requires that in the course of processing fishery products to increase their added value, necessary hygiene standards should be met, and appropriate methods should be used to enable consumers to consume high-quality aquatic products. According to the “idea of responsible fishing (fisheries),” fishery management should include all fishery production conduct, requiring people to use a responsible attitude in fishery production activities to ensure the sustainable use of fishery resources. The FAO of the United Nations put forward standards and norms for all fishery production according to the Code of Conduct for Responsible Fisheries, Implementation Agreement, and Flagging Agreement formulated and passed by the Cancun Declaration, which fully embodied the spirit of the Cancun Declaration.

8.6.2.2

Precautionary Approach

“Precautionary approach” was put forward at the “Technical Consultation on High Seas Fishing” in 1992. The management idea of “Precautionary approach” requires that the potential effects of fishing on target and nontarget fish species should first be assessed for the exploitation of emerging fisheries or the expansion of existing fisheries. Both the Implementation Agreement and the Code of Conduct for Responsible Fisheries clearly require that fishing countries should use Precautionary practices broadly to conserve and manage marine biological resources and protect the marine environment. “Precautionary approach” also require that any country that utilizes fisheries may not use insufficient data as a reason to delay or not take measures to conserve and manage fishery resources. The implementation of “Precautionary approach” shows that the management and utilization of fishery resources have shifted from maintaining optimal utilization goals to sustainable use goals.

8.6.2.3

Responsibility of the Flag State

Both the Convention on the High Seas and the United Nations Convention on the Law of the Sea that concluded in 1958 and 1982 clearly stipulate that ships sailing on the high seas are under the jurisdiction of the flag state, that there must be a real connection between the flag state and the ships flying its flag, and that the responsibility of the flag state is to exercise jurisdiction and control rights over the administrative, technological, and social issues of ships flying its flag. With the development of high seas fisheries, fishing vessels operating on the high seas that fly flags for convenience often bring numerous problems to fishery management on the high seas. In recent years, when the international community discussed fishery resource management on the high seas, it was believed that the implementation of the responsibility of the flag state should become the main content

8 Fishery Resource Management and Policy Formulation

413

of international fishery resource conservation and management measures. Meanwhile, a country’s jurisdiction over its ships has further expanded to include the state bearing responsibility for the fishing behavior, fishery resource conservation behavior, and ecological environment protection behavior of the ships flying its flag.

8.6.2.4

Design of Law Enforcement Mechanisms

The key to the success or failure of fishery management lies in the establishment and design of law enforcement mechanisms. Therefore, the design of law enforcement mechanisms was the most controversial topic for discussion at the “United Nations Conference on Straddling Fish Stocks and Highly Migratory Fish Stocks.” In the Agreement for the Implementation of the Provisions of the United Nations Convention on the Law of the Sea of 10 December 1982 relating to the Conservation and Management of Straddling Fish Stocks and Highly Migratory Fish Stocks provisions were reached regarding compliance and law enforcement that emphasized that compliance and law enforcement of conservation and management measures for regional or subregional straddling and highly migratory fish stocks should be ensured by way of cooperation through regional or subregional fishery management organizations. Regional fishery management is the main mode of resource management for the world’s high seas fisheries at present and in the future. This argument is embodied in the Provisions for the Conservation and Management of Straddling and Highly Migratory Fish Stocks, the Code of Conduct for Responsible Fisheries, and the Rome Declaration.

8.6.3

Main Connotations of International Fishery Resource Management Documents

1. Cancun Declaration—This declaration is the first to put forward the concept of responsible fishing and stated that in the exploitation and utilization of fishery resources and the cultivation process, ways that do not harm the ecosystem and do not affect the quality of fishery resources and aquatic products should be used for the sustainable use of fishery resources. In the course of processing aquatic products, necessary hygiene standards should be met, and appropriate methods should be used to enable consumers to obtain high-quality products. 2. Rio Declaration—This declaration emphasizes the importance of the “sustainable use” of resources and puts forward the important significance of the sustainable use of resources for ensuring human welfare. 3. Agenda 21—Agenda 21 puts forward that the sustainable use and conservation of marine biological resources in the high seas requires the cooperation of all countries and requires countries that utilize fisheries to commit to the conservation and sustainable use of marine biological resources in the high seas. To realize

414

4.

5.

6.

7.

X. Chen

the sustainable use of marine biological resources, it is necessary to promote the development of selective fishing gear, ensure effective monitoring and law enforcement of fishing activities, and promote relevant scientific research. Although Agenda 21 is not a legal document, it indicates that the international community has reached a consensus on the sustainable use of fishery resources in the high seas. Agreement to Promote Compliance with International Conservation and Management Measures by Fishing Vessels on the High Seas. The Agreement to Promote Compliance with International Conservation and Management Measures by Fishing Vessels on the High Seas attempts to achieve the conservation of fishery resources in the high seas by standardizing the conduct of fishing vessels, detailing the responsibility of the flag state, and establishing and standardizing the records of fishing vessels operating on the high seas to strengthen the management of fishing vessels on the high seas. Agreement for the Implementation of the Provisions of the United Nations Convention on the Law of the Sea of 10 December 1982 relating to the Conservation and Management of Straddling Fish Stocks and Highly Migratory Fish Stocks and the Code of Conduct for Responsible Fisheries. This agreement is divided into 13 parts and 50 articles and has two annexes—“Standard Requirements for Data Collection and Sharing” and “Guidelines for the Applicable Precautionary Reference Points in the Conservation and Management of Straddling Fish Stocks and Highly Migratory Fish Stocks”—providing detailed provisions for the conservation and management of straddling and highly migratory fish stocks. The agreement hands the authority to conserve and manage fishery resources in the high seas to regional fishery management organizations and formulated law enforcement mechanisms for flag states, port states, and inspection states. The agreement is a comparatively complete global international fishery agreement that has a legal binding force. The implementation of the agreement has had a great effect on the management of fisheries on the high seas. Code of Conduct for Responsible Fisheries. The code has a total of 12 topics and articles and puts forward the principles and standards for the protection, management, and exploitation of all fishery resources. It contains fishery management content such as fishing, processing, trade, and fishery research. The general principle of the code emphasizes that “all countries and users of aquatic organisms should protect the aquatic ecosystem, engage in fishing production in a responsible way, and effectively protect and manage aquatic biological resources” and regards the sustainable use of fishery resources as the highest goal of conservation and management. International Plans of Action. International Plans of Action includes three major plans: International Plan of Action for the Management of Fishing Capacity, International Plan of Action for Conservation and Management of Sharks, and International Plan of Action for Reducing Incidental Catch of Seabirds in Longline Fisheries. The International Plan of Action for the Management of Fishing Capacity addresses fishing capacity and the sustainable use of fishery resources and the levels at which countries utilize fisheries and gradually

8 Fishery Resource Management and Policy Formulation

415

reducing the fishing capacity of affected fisheries, especially the fishing capacity of fisheries on the high seas. 8. The Rome Declaration on the Implementation of the Code of Conduct for Responsible Fisheries. This declaration emphasizes the important role that regional fishery management organizations should play during the implementation of The Code, and it is the first time that the importance of developing recreational fisheries was put forward. The declaration imparts that one should give impetus to a responsible fishery system, establish effective integrated supervision systems, encourage the development of a sustainable cultivation industry, reduce resource waste, increase the sustainable contribution rate of fisheries to the global economy and society, and make contributions to guarantee the security of the world food supply.

8.6.4

Development Trends in International Marine Fishery Management

In the early stage of fishery management, fishery management abided by the “principle of free access to fishing,” and the means of management were, primarily, the establishment of indirect means of limitation such as closed fishing areas and closed fishing periods. In 1924, the US Congress approved the establishment of closed fishing areas and the limited application of fishing gear to protect the Alaskan chum salmon (Oncorhynchus keta). As an effort toward the exploitation of fishery resources has increased and resources have declined, management measures that limit catches have gradually been used. Prior to the 1970s, fishery management mainly used input control management measures, and limiting catches was a supplementary fishery management measure. With a further decline in resources, starting in the 1980s, a management system with output management as the primary mode and input management as the supplement mode has gradually been established. The United Nations Convention on the Law of the Sea stipulates that coastal countries should determine the TAC of biological resources in their exclusive economic zones, and the idea of output management that limits catches was quickly popularized. Advanced fishery countries all actively promoted management measures that limit catches. For example, among the 21 member states of the OECD, almost all have implemented a TAC system (Chen 2014). Since the 1990s, a large number of documents and agreements regarding the conservation and management of fishery resources have successively appeared—the Cancun Declaration, the Rio Declaration, and Agenda 21. The combination of the conservation and management of fishery resources and the environmental protection of natural resources and the idea of the exploitation and utilization of fishery resources that combines fishery development with world trade and human health, safety, and welfare are gradually taking root. Fishery managers or organizations believe that the formulation of national fishery policies and regulations must consider the comprehensive development of coastal areas and that the sustainable use of

416

X. Chen

fishery resources should become the highest goal of international fishery management. In the future, the development trend of world marine fishery management will mainly occur in accordance with the content of the Code of Conduct for Responsible Fisheries and the goals of sustainable fisheries to further improve the specific measures and methods of fishery management. The development of international marine fishery management will evolve along the following paths (Chen 2014): 1. Marine fishery management will evolve from qualitative management to quantitative management. International fishery management will evolve from qualitative fishery management to quantitative management systems, such as total allowable catch systems, individual catch quota systems, and individual transferable catch quota systems. 2. Marine fishery management will evolve from a relaxed and loose management system to a strict management system. The era of “free fishing on the high seas” is over, and a loose fishery management system that is not conducive to the conservation and management of fishery resources will not suffice. Fishery management measures and signs will be increasingly standardized, specific, and strict. For example, a strict catch statistics system will be established. 3. The scope of marine fishery resource management will be further expanded. The management of marine fishery resources will develop from the management of a single target population to the management of populations and relevant ecosystems related to target populations. For example, fishery management will be extended to the management of seabirds and sea animals and expand from single management of capture fisheries to the management of the aquaculture industry and processing industry. 4. The role of regional cooperative management organizations in marine fishery management will continue to increase. The idea of the integrated management of marine ecosystems gradually won support among the people because of the inefficiency of countries’ management of fishery resources and the environment. Therefore, increasingly more attention will be paid to the jurisdiction of regional and subregional cooperative management organizations.

8.7 8.7.1

Uncertainties and Precautionary Approach Concepts of Uncertainty and Risk

The results stemming from management decisions or actions do not only depend on the decision or action itself but also on various objective conditions that are not controlled and dominated by the main decision-making subject. Changes in objective conditions generate uncertainty and often cause results that do not conform with predicted calculations. When an action has multiple possibilities, the result is uncertain and has risk. The reason for the existence of risk is mainly related to the

8 Fishery Resource Management and Policy Formulation

417

influence of certain decision-makers and uncontrollable factors. In the process of managing natural resources, risk refers to the degree and occurrence probability of economic loss arising due to force majeure or unpredictable external environmental factors in determining the future exploitation, utilization, and management of resources according to experience. Uncertainty refers to the inability to know for sure whether a certain state will occur in the future, that is, an event or state that cannot be confirmed by experience. Risk and uncertainty are often manifested in two aspects of the same thing. For example, according to the current market situation, it is estimated that exploiting one unit of resources will result in a loss of CNY 20 in the future, which is a risk. However, no decisive answer can be made on whether CNY 20 will definitely be lost in the future; this represents uncertainty.

8.7.2

Sources of Risks and Uncertainties in Fishery Management

During fishery resource exploitation, utilization, and management, there are many certain factors, which bring many difficulties to the optimization of the sustainable use and protection of fishery resources. Hilborn and Peterman (1996) believed that there are seven uncertainty factors that affect the assessment and management of fishery resources.

8.7.2.1

Uncertainty in the Lack of Key Biological Parameters Related to Fishery Resources and the Amount of Fishery Resources

Unreliable resource assessment data are the main reason for errors in estimating the amount of resources. Structural changes and errors in the data series may also serve as uncertainty factors when assessing the amount of fishery resources.

8.7.2.2

Uncertainty in the Structure of the Assessment Model

Organisms are diverse, and the biological and ecological relationships between species are close, but the vast majority of models at present still use assessment modes for single populations. The structural uncertainty of the single population assessment model reduces the credibility of many models.

8.7.2.3

Uncertainty in the Model Parameters

The differences and changes in parameters in bioeconomic models are attracting great attention from fishery scientists and managers, but there is very little discussion

418

X. Chen

and analysis on how to correct data deviations. In many fishery assessment models, the evaluation of key parameters and sensitivity analyses of the effects of key parameters are both lacking.

8.7.2.4

Uncertainty in Changes to Environmental Conditions in the Future

Environmental changes have a major effect on the amount of resources and the spatial and temporal distribution of fishery resources, and environmental changes and sensitive factors that affect environmental changes are often difficult to predict dynamically, which brings greater uncertainty to the assessment of fishery resources.

8.7.2.5

Uncertainty in the Behavior of Resource Utilizers

In population assessment models, fishers’ response to fishery management rules and regulations and their behavioral changes should be fully considered to assess the fishers’ response to the uncertainty of management measures. When assessing fishers’ response to the uncertainty of fishery management policies, the simplest assumed condition is that the fishers generally abide by fishery management policies and regulations and have a heart for public interest rather than getting a “free ride.” In fact, however, due to the common ownership and private benefits of fishery resources, fishers generally have a “free ride” mentality. Fishers often show uncertainty in terms of the allocation of fishing effort, the choice of target species, the choice of fishing gear, and the authenticity of reports on catches and fishing effort.

8.7.2.6

Uncertainty in Future Fishery Management Goals

Changes in management goals come from the unpredictability in the behavior of fishery management departments and are important sources of uncertainty. Fishery policymakers tend to maximize resource utilization and satisfaction. The government is the producer or supplier of a fishery system, and fishers are the demanders of the system. Fishery policymakers usually choose the point that combines yield and profit, maximizing fishery management utility. The preference function of fishery policymakers can be expressed by a set of cost and profit indifference curves. Their shapes and positions mainly depend on the negotiation results between different groups in society and the political and economic power of each group. In this sense, the preference function of fishery policymakers is uncertain.

8 Fishery Resource Management and Policy Formulation

8.7.2.7

419

Uncertainties in Political, Economic, and Social Conditions

Under market economy conditions, market price changes will bring uncertainty to fish prices and to fixed and variable production costs. Changes in the domestic and international political environment similarly have uncertainties and lead to larger differences in fishers’ responses to fishery management systems. When there is political instability and employment rates are low, there is a considerably large difference in the uncertainty of fishers’ fishing behavior.

8.7.3

Precautionary Approach for Uncertainties in Fishery Management

In the 1990s, fishery managers gradually became aware of the broadly existing risks and uncertainties in marine fishery management; reducing uncertainty had a significantly positive effect on the sustainable use of fishery resources, and the concept of precautionary approach was thus born. At the same time, fishery managers were aware of the following: 1. The use of MSY as a fishery management goal has certain risks. 2. The management goal of making the catch yield lower than the highest sustainable catch must be set as a prevention management goal. 3. Clear measurement standards for limiting fishing activities must be formulated. 4. The reliability of scientific research and the soundness of management systems must be better determined in connection with uncertainty. 5. Pilot projects must be assessed as a basis for approving the use of new fishing gear and new management methods. Advanced fishery countries such as Australia and the United States are gradually executing precautionary approach, but several years are needed to determine the implementation results. To eliminate the fishery management risks brought by uncertainty, the FAO of the United Nations formulated the Code of Conduct for Responsible Fisheries. The following are put forward in The Code: 1. All countries should universally apply precautionary policy to the protection, management and utilization of aquatic biological resources in order to protect the resources and the aquatic environment, and the lack of sufficient scientific data should not be used as a reason to delay adopting or fail in adopting protection and management measures. 2. When implementing a precautionary approach, all countries should especially consider the uncertainties in the amount of resources and production, measurement standards, the status of related resources, fishing mortality, resource distribution, the effects of fishing operations on nontarget fish species, and environmental and socioeconomic statuses.

420

X. Chen

3. All countries and regional fishery management organizations should determine the resource management standards and the actions that need to be taken to exceed these standards in accordance with the existing scientific basis. 4. For newly exploited fisheries, all countries that utilize fisheries should adopt prudent protection and management measures to limit the fishing volume and the operating intensity. The protection measures taken should be maintained until sufficient data are obtained to evaluate the long-term effects of fishery behavior on resources, and the necessary protection and management measures should be executed in accordance with the evaluation results for the sustainable development of fisheries. 5. If environmental changes significantly harm marine biological resources, all countries that utilize fisheries should adopt emergency protection and management measures to ensure that fishing operations do not exacerbate harm to resources. When fishing operations seriously threaten the sustainable use of fishery resources, all countries that utilize fisheries should take temporary emergency measures based on the best scientific basis. It is clearly stipulated in the Agreement for the Implementation of the Provisions of the United Nations Convention on the Law of the Sea of 10 December 1982 relating to the Conservation and Management of Straddling Fish Stocks and Highly Migratory Fish Stocks and the Code of Conduct for Responsible Fisheries that all countries that utilize fisheries should widely use precautionary approach for the conservation, management, and exploitation of straddling fish stocks and highly migratory fish stocks to protect marine biological resources and the marine environment. The related precautionary approaches are as follows: 1. Precautionary approach should be widely applied to the conservation, management, and exploitation of straddling fish stocks and highly migratory fish stocks by all countries in order to protect marine biological resources and preserve the marine environment. 2. All countries should prudently manage fishery resources when the resource status is unclear, unreliable, or insufficiently understood. They may not use insufficient scientific data as a reason to delay or fail to adopt conservation and management measures. 3. When implementing precautionary approach, all countries should: (a) Share the acquired scientific data, use improved technology to handle dangerous and unclear factor, and improve the decision-making behavior for the conservation and management of fishery resources; (b) Determine the available reference points for specific species according to scientific data and adopt necessary management measures when the reference points are exceeded; (c) Consider the size, fecundity, and fishing mortality of the population and the effect of fishing activities on nontarget fish species, related fish species, or subordinate fish species; and.

8 Fishery Resource Management and Policy Formulation

421

(d) Formulate data collection and research schemes and assess the effect of fishing on nontarget fish species, related fish species, or subordinate fish species and their environment as well as formulate plans to conserve related fish species and protect particularly key ecological environments. (e) If the fishing intensity is close to the fishing reference point, all countries should adopt measures to ensure that the fishing reference point is not exceeded. If the reference point has already been exceeded, all countries should immediately adopt the action determined in paragraph 3②to restore the population. (f) If the status of the target species, nontarget species, related species, or subordinate species is of concern, all countries should strengthen monitoring of these populations and species and survey the population status and the effects of conservation and management measures. All countries that utilize fisheries should periodically revise the management measures in accordance with new information. (g) For new fisheries or trial fisheries, formulate prudent conservation and management measures as soon as possible; in particular, the upper limits of catches and fishing effort need to be formulated. (h) If a certain natural phenomenon seriously harms straddling fish stocks or highly migratory fish stocks, all countries should urgently adopt conservation and management measures to ensure that fishing activities do not cause the resource status to worsen. When fishing activities result in a serious threat to the sustainable use of target populations, all countries should also adopt emergency measures.

References Chen XJ (2014) Fisheries resources economics. China Agriculture Press. (in Chinese) Clark CW (1976) Mathematical bioeconomics: the optimal management of renewable resources. Wiley Interscience, New York Deng JY, Ye CC (1990) Shrimp and its resource management in the Bohai Sea and the Yellow Sea. China Ocean Press. (in Chinese) Gordon HS (1953) An economic approach to the optimum utilization of fishery resources. J Fish Res Board Can 10(7):443 Hilborn R, Peterman RM (1996) The development of scientific advice with incomplete information in the context of the precautionary approach 77–101. Precautionary approach to fisheries, part 2: scientific papers. FAO (Food and Agriculture Organization of the United Nations) Fisheries Technical Paper 350/2. FAO, Rome Milazzo M (1998) Subsidies in world fisheries -a re-examination. World Bank Technical Paper No. 406. The International Bank for Reconstruction and Development/World Bank, Washington. 86 p Panayotou T (1982) Management concepts for small-scale fisheries: economic and social aspects. FAO Fish Tech Pap 228:53 Qu FT (2011) Environment and resource economics. China Agriculture Press. (in Chinese) Ye CC, Huang B (1990) Mathematical and theoretical biology: resource assessment and management. China Agriculture Press. (in Chinese)