Sumaila 2001. Optimal allocation of TAC and the implications of implementing an ITQ management system for the North-East Arctic cod

ABSTRACT. First, we study the allocation rule applied to split the Norwegian total allowable catch for cod between coastal and trawler ves-sels. Second, we explore the bioeconomic impli-cations of an ITQ management system for this ® shery. A model combining a cannibalistic bio-model with cooperative game theory is developed. Key results from the study are (1) the current al-location rule acts in opposite fashion to what may be considered bioeconomically optimal; and (2) an ITQ system for this ® shery is likely to result in economic losses, as the biological advantages of harvesting with the two vessels types may be lost. (JEL Q22, Q28) I