Investing in natural capital as management strategy in fisheries: The case of the Baltic Sea cod fishery

Many of today's fish stocks are officially managed following the precautionary approach. Yet, different political objectives and uncertainties among fishermen about their economic future make its implementation difficult. Over 75% of all commercially valuable stocks are exploited, overused, or collapsed and in a state of recovery [FAO, 2004. The state of the world fisheries and aquaculture. FAO, Rome. Managing fish stocks with an ecosystem-based approach is likely to stop the divestment of natural capital by combining sustainable use strategies with the preservation of marine ecosystems. Using the example of the Baltic Sea cod fishery, we show that a recovery program is economically and ecologically viable and reduces negative externalities. While policy makers must assist fishermen during the early years of the program, fishermen will experience greater landings and profits in subsequent years.