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

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