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Assessing Societal Costs and Benefits of
Fisheries in Developing Countries: the ECOST
project
Pierre Failler, Haoran Pan, et al
CEMARE, Department of Economics, University of Portsmouth, UK
E-mail: [email protected] or [email protected]
Tel: +44 (0)2392 844 085
The precautionary principle of consilience of
ecosystems and societies:
Development of an assessment method of the societal
cost for best fishing practices and efficient public
policies
SIXTH FRAMEWORK PROGRAMME, INCO-DEV, PRIORITY A.2.2
Reconciling multiple demands on coastal zones
Major concerns
• Food security issues: less and less fish for local
population (prices going up)
• Equity and poverty issues: concentration of
financial assets in a few hands (mainly traders)
without wealth redistribution
• Overexploitation issues: export species
overexploited and ecosystems dammaged
eCOST background and objectives
Johannesburg Plan of Implementation
•
•
•
•
•
•
Integrated ocean and coastal management
Fisheries
Conservation of biodiversity
Protection from marine pollution
Science and observation
Small island developing States
The project falls under
– the logic of the decision of Johannesburg to restore the marine
ecosystems for 2015 through the establishment, by 2012, of
networks of protected areas and
– the philosophy of the Code of Conduct for Responsible
Fisheries (CCRF) for a responsible fishery
Its objectives include
•
1-Development of far-reaching research into the capacity of traditional
models to take into account the reality of ecological, economic and social
effects using purely theoretical considerations, the experience of past
application, and a questioning of the notion of value.
•
2-The construction of an efficient model for societal cost. This model is
based on the consilience between economics, sociology and ecology, and
takes into account the variable nature of resources and marine
environmental changes.
•
3-Comparison of the societal costs of fishing activities. Comparative
work carried out on three levels: firstly, work on the ecosystem showing the
repercussions of the use of distinct techniques and practices; secondly,
comparison of the ecosystems themselves in order to highlight the
responses made by the ecosystems to anthropic pressure; and thirdly, a
comparison of ecosystems that have free or regulated access and the
ecosystems found within marine protected areas.
•
4-Definition of options for public policy by the formulation of certain
principles found within the framework of the CCRF for responsible fishing
3 Eco-Regions and 9 Countries
AFRICA Coastal Upwelling Ecosystem - the Bolama and Bijagos marine
protected area
•
Senegal
•
Guinea Bissau
•
Guinea Conakry
ASIA Great Delta Ecosytem - the Vo Doi marine protected area
•
Perl River (China)
•
Chao Phraya (Thailand)
•
Mekong (Vietnam)
Caribbean Coral Reef Ecosystem - the Parque Nacional des Este
•
Jamaica
•
Dominicana Republic
•
Trinidad and Tobago
The fisheries production, resource use, and income distribution
Aquatic
Resource
Landing
Processing
Distribution
Distribution
Consumption
Consumption
Fishing
Service
Employment
Population
Functional income
distribution
Personal income
distribution
Labor, capital incomes
Personal incomes
Consumption
An economic model to assess economic
costs and benefits of fisheries
Ecological changes
Costs
Benefits
Growth
Capital
Labour
Capital
Distribution
Labour
Stock
Processing
Price
CPUE table
Production
Price
Effort
Price
Use table
Revenue
Cost
Revenue
Surplus
Capital
income
Consumption
Cost
Revenue
Surplus
Labours’
income
Capital
income
Social changes
Cost
Surplus
Labours’
income
Costs
Benefits
Capital
income
Service
Labours’
income
How to measure the societal costs in monetary value?
Social cost (depletion)
Social
system
Social cost (disturbance)
Economic cost (correction)
Social benefit (improvement)
Economic benefit (surplus)
Economic
system
Economic cost
(depletion)
Ecological benefit
(restoration)
Ecological benefit (protection or management)
Ecological
system
The indicator of economic costs and benefits
•
•
•
•
•
EI – indicator of economic costs and benefits of fisheries
N – total national population
Nfish – total fishery population
VAfish – fisheries sector’s total value-added
GDP – gross national products
fish
VA
fish
N
EI 
GDP
N
The value-added of fisheries society
VA
fish
 VA
cap
 VA
pro
 VA
mak
 VA
fbs
where cap, fbs, pro and mak represent subsectors of fisheries such as wild fish capture,
fishery-related business service, processing and
marketing, respectively.
The value-added of marine capture sector is
VAtcap   CPUEm,s ,t  Em,t  PsL,t  U c ,m  Em,t  Pc ,t
m
s
c
m
where m, s, t, and c indicate metiers, species, time, and
intermediate costs, respectively.
CPUE -- a table of catch per unit of effort with two
dimensions, metier by species
U -- a table of intermediate uses of commodities or
services with two dimensions, commodity or service by
metier
E -- a vector of the fishing efforts by species.
PLs,t -- a vector of the landing prices of fishes by species
Pc,t -- a vector of the prices of intermediate commodities
or services
The catch of fish, CAT, is
CATs ,t   CPUEm, s ,t  Em,t
m
The biomass stock at present period depends on both
the level and growth of the biomass stock, and also the
catch at previous period
BIOM s ,t  (1  BG s ,t 1 )  BIOM s ,t 1  CATs ,t 1
where BIOM and BG are the biomass stock and its growth
rate, respectively.
The production or make table, CPUE, will change subject
to the availability of biomass stock
CPUEm, s ,t  CPUEm,s 
BIOM s ,t
BIOM s
where CPUEm,s and BIOM s are the CPUE table and
biomass stock in a reference year, respectively.
The value-added of fish processing sector is
VA
pro
 Q
pro
s2
s2
 Ps2  U
pro
pro
c
X
pro
 Pc
c
where
s2 -- the species processed
Q -- the quantity of processed fishes
X -- the activity of the processing sector
Ppro -- a vector of the prices of processed fishes.
The value-added of fish marketing sector is
mak
VA
 Q
mak
s3
s3
P
mak
s3
 U
mak
c
X
mak
 Pc
c
where
s3 -- the species sold
Q -- the quantity of sold fish products
X -- the activity of the marketing sector
Pmak -- a vector of the selling prices of fish products
The value-added of fishery-related business services is
VA
fbs
X
fbs
P
fbs
 U
fbs
c
X
fbs
 Pc
c
where
X -- the activity of the fishery-related business
service sector
Pfbs -- a vector of the prices of processed fishes.
The indicator of social costs and benefits
Income distribution:
from functional to personal
Social indicators:
poverty, gender development, food security
Fishery society population by group
Fishing-depended groups by small-scale and industry-scale and by employee
and employer
Processing-depended groups by small-scale and industry-scale and by
employee and employer
Marketing-depended groups by small-scale and industry-scale and by
employee and employer
Service-depended groups by small-scale and industry-scale and by employee
and employer
Government – representing the national population
Fishery society employment by group
(1) Production
Small-scale fisher (male/female)
Industrial fishing worker (m/f)
Small-scale owner (m/f)
Industrial owner (m/f)
Foreign fleets - government
(3) Distribution
Small-scale dealer (m/f)
Retailer (m/f)
Export worker
Local wholesaler (m/f)
Exporter
(2) Processing
Small-scale fish-processing worker (m/f)
Industrial fish-processing worker (m/f)
Small-scale fish-processing owner (m/f)
Industrial fish-processing owner (m/f)
(4) Business service
Small-scale worker (m/f)
Industrial worker (m/f)
Small-scale owner (m/f)
Industrial owner (m/f)
From functional to personal income distribution
(1) Small-scale fisheries group average income
N – population size of fishery community
L – labor force employed
Y – total income
AY – average income
ss – small-scale
sf – small-scale fisher
sd – small-scale dealer
sw – small-scale worker
Total income:
Yss  AYsf  Lsf  AYsd  Lsd  AYsw  Lsw
Yss
Average income per employment:
AY 
Lss
Yss
N
Average income per capita:
AYss 
N ss
L
ss
(2) Group average income for industrial fishers (workers)
ine –industrial fisheries employee
ifw – industrial fishing worker
ipw – industrial processing worker
rt – retailer
is – industrial service worker
m - metier
Total
income:
Yine  AYifw  Lifw  AYipw  Lipw  AYrt  Lrt  AYis  Lis
m
m
AY

AY

L
Average income per fisherman across metier:
 ifw ifw
ifw
m
Average income per employment:
Yine
AY 
Line
L
ine
Average income per capita of fisherman group:
N
AYine

Yine
N ine
(3) Group average income for industrial fishers (owners)
inr – industrial fisheries employer
ik – industrial skipper
ipc – industrial owner (processing)
lw – local wholesaler
ex – exporter
isc – industrial service owner
Total
income:
Yinr  AYik  Lik  AYipc  Lipc  AYlw  Llw  AYex  Lex  AYisc  Lisc
Average income per skipper:
AYik   AYikm  Lmik
m
Average income per employer:
Yinr
AY 
Linr
L
inr
Yinr
Per capita income of fisheries employer group: AY 
N inr
N
inr
(4) Government income from foreign fleet
PG – the price of access rights
QF – the quantity of fishes harvested by foreign fleets
Total government revenue from foreign fleets:
Y G  PG  Q F
Per capita government revenue from foreign fleets:
YG
AY 
N
N
Sen’s comprehensive measure of poverty (1976)
S – Sen poverty index
H – the poverty headcount ratio
I – the average income shortfall of the poor in percentage terms
G – Gini coefficient of inequality
S  H I  1  I G
FGT comprehensive measure of poverty (1984)
P
– P-alpha poverty index
AY – poverty line
i – ith group
n – number of groups
  0, 1, or 2
  AY  AYi  
i  AY 
P 
n
for all

AYi  AY
Fish consumption index for food security
F – fish consumption index
FC – average fish consumption of each fishery group in KG
i – ith group
50 – 50 KG consumption of fish
C – constant
P
– average price of fish
FC i
Fi 
50
1
FCi  C  P  AYi 2
Gender development index
W – gender development index
Yw – total income of women in each group
Ym – total income of men in each group
i – ith group
Yi w
Wi  m
Yi  Yi w
Combined measure of social indices
SI – combined social indices
1   2   3  1
1
SI i  S i  Fi
2
 Wi
3
The indicator of ecological costs and benefits
ELI   ws 
s
BIOM s ,t
BIOM s
ELI -- indicator of ecological costs and benefits of
fisheries
w -- weights of each species,  ws  1
s
The indicator of societal costs and benefits
1
2
3
SCBi  SI i  EI i  ELI i
where 1   2   3  1
Empirical case studies
Apply to nine fishery regions in developing countries
Compare results on current stage of fisheries in
each region
Policy simulation for future practice
Data requirements
A regional SAM with fisheries details
Some time-series data on production and consumtion,
and value