Scandinavian Working Papers in Economics

Discussion Papers of Business and Economics,
University of Southern Denmark, Department of Business and Economics

No 8/2015: International Fisheries Agreements and Non-consumptive Values

Pedro Pintassilgo (), Marita Laukkanen (), Lone Grønbæk Kronbak () and Marko Lindroos ()
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Pedro Pintassilgo: Faculty of Economics and Research Centre for Spatial and Organizational Dynamics, Postal: University of Algarve, Faro, Portugal
Marita Laukkanen: VATT Institute for Economic Research, Postal: Helsinki, Finland
Lone Grønbæk Kronbak: Department of Business and Economics, Postal: University of Southern Denmark, Campusvej 55, DK-5230 Odense M, Denmark
Marko Lindroos: Department of Economics and Management, Postal: University of Helsinki, Helsinki, Finland

Abstract: The management of internationally shared fish stocks is a major economic, environmental and political issue. According to international law, these resources should be managed cooperatively under international fisheries agreements (IFAs). This paper studies the formation and stability of IFAs through a coalition game that accounts for both direct consumptive values (harvesting profits) and non-consumptive values of the fish stock per se. The results show that accounting for non-consumptive values helps conserve the fish stock in that equilibrium fishing efforts are smaller and fish stock larger than without non-consumptive values under all possible coalition scenarios (full, partial and no cooperation). However, considering non-consumptive values does not affect the outcome of the game in terms of the prospects for cooperation: even with substantial non-consumptive benefits, the outcome is full non-cooperation. Hence, the trap of non-cooperation in international fisheries management cannot be overcome simply by explicitly accounting for non-consumptive values within IFAs. It is suggested that strengthening the role of IFAs and limiting the ability of non-member countries to free-ride be further investigated as measures fostering cooperation.

Keywords: Coalition games; international fisheries agreements; non-consumptive values; non-use values; shared fish stocks

JEL-codes: C70; F53; Q22

22 pages, April 17, 2015

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