Individual transferable quotas in the Baltic Sea herring fishery: A socio-bioeconomic analysis

We study the possible economic, biological and social effects of individual transferable quotas (ITQs) for the Finnish herring fishery. First, we carry out a bioeconomic analysis of the Finnish herring fishery. The model observes two optional management schemes: an ITQ system and an IQ system with non-transferable individual quotas. Secondly, the qualitative part of the study consists of personal interviews of surveyed Finnish fishermen of herring. We find that current management of the Finnish herring fishery is far from being biologically and economically sound. Economic recommendations presented here are more conservative than the biological recommendations provided by the International Council for the Exploration of the Seas (ICES). According to simulation results, an ITQ system is a viable alternative to the current total allowable catch-based management. The results of the interviews show that an ITQ system would likely be supported by the fishermen.