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

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