Individual fishing quotas in the eastern Gulf of Mexico grouper fishery: Fleet restructuring, effort reduction and cost savings

This paper estimates a structural model of multiple-species harvesting costs in the eastern Gulf of Mexico reef fish fishery. The model is used predict fleet size, vessel level harvesting activity and fleet-wide revenues and costs that are expected under a proposed individual fishing quota (IFQ) management program for grouper species. Results suggest significant fleet downsizing, scale economies and pure efficiency gains will arise under IFQs. Overall IFQs appear to be an attractive alternative to the current controlled access management program in the fishery