IFQs Transform a Nation's Fisheries

By Richard Newell and James Sanchirico
with a summary by Dana Gattuso

As nations throughout the world debate the best policy measures for preventing overfishing and rebuilding fisheries, individual fishing quotas (IFQs) stand out as a promising alternative to relying strictly on traditional regulations. A study by Richard Newell, James Sanchirico, and Suzi Kerr of New Zealand's IFQ fisheries and the markets by which quotas are traded provides evidence on how they improve fishery performance.

In response to overfishing and declining incomes, New Zealand initiated IFQ programs for 26 marine species in 1986. As of 2003, IFQs have been adopted for 45 species. Among their findings, the researchers report that IFQs have helped reduced fleet excesses that were plaguing fisheries under traditional management. IFQs have also encouraged fishermen to form management companies that invest in enhancing fish stocks. Notably, the value of IFQ fisheries, as represented by quota market capitalization, has grown to about $2 billion.

You can read the complete article as a PDF on the Resources for the Future Web site as well as the longer study by Richard Newell, Jim Sanchirico, and Suzi Kerr on New Zealand's quota markets.