Proposed policy changes to the Gulf of Mexico red snapper IFQ program: Evaluating differential impacts by participant type

The U.S. commercial red snapper IFQ program was the first catch share management system implemented in the Gulf of Mexico. The program has been successful in meeting its major goals of ending derby-style fishing and reducing overcapacity in the harvest sector, but several concerns regarding the socioeconomic impacts of the program have been raised. To address these concerns, the management agency initiated a fishery management plan amendment to develop potential modifications to the program. This analysis describes the proposed policy changes, identifies the key outcomes, and assesses the impacts on distinct participant types using historic harvest data, quota trading patterns, and existing estimates of industry concentration. There are three implied regulatory objectives, as all proposed modifications would either increase ownership of shares by harvesters, limit consolidation in the harvest sector, or increase harvest flexibility. The corresponding effects on stakeholders could vary quite substantially as each objective and the associated alternative policies would affect the size and composition of multiple markets that collectively affect socioeconomic outcomes. The approach to evaluating existing catch share programs and the associated findings in this paper are important for management agencies charged with adhering to federal policies and guidance concerning distributional outcomes.