Demand-side fishery management: integrating two forms of input control

A fishery management approach is presented which combines (1) a buyback of fishing vessels, and (2) a management tax or fee on seafood going to market. Tax rate by species is set proportional to the extent of overexploitation. Tax revenue is used for several purposes, including a buyback of licenses at free-market price. Advantages and disadvantages of this policy are discussed, with specific comparison to individual transferable quotas (ITQs). This regulatory policy offers advantages (1) for multispecies fisheries, (2) with ecosystem fishery management, (3) where self-funded financing for license buyback is needed, and in place of or together with ITQs (4) where allocation, discarding and highgrading, quota setting, or enforcement of ITQs is problematic.