Technological change and institutional implications Dag Standal SINTEF Fisheries and aquaculture

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Technological change and institutional
implicationsDag StandalSINTEF Fisheries and
aquaculture
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The Norwegian model

• 1990-91 Rejected the introduction of a ITQ model
• 1991- IVQ model
• - Strong emphasis on
• diverse ownership of quotas and vessels (rural
  policy)
• maintain a diverse fleet structure via the
  allocation policy (the trawl ladder)
• IVQ model integrates vessels and quotas in one
  system (market)
• Input regulations (technology) and output
  (biology) are integrated.
• Main challenge in terms of capacity balancing
  input and output regulations
• Cut down unprofitable overcapacity !

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Table 1Number of vessels above 28 meters and
change, 1988 and 2003.

• Length group(m) 1988 2003
• 28 - 39,9 232 93 -60
• 40 - 49,9 125 107 -14
• 50 - 59,9 74 74 0
• 60 - 43 88 105
• Total 474 362 - 24
• Reduction in number of vessels
• Structural changes

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Table 2Technical parameters for arctic
trawlers built in 1988 2002 (cod/shrimp
trawler).

• Building year 1988 2002 1988-2002
• Lenght (m) 61.50 64.00 1.04
• Breadth (m) 12.80 16.60 1.30
• Prod. cap (tons) 20 35 1.75
• GRT 1905 2574 1.35
• HP 3342 8046 2.41
• Number of trawls 1 3 2.00
• Catch (tons) 1000-1500 3000-4000 2-3
• Trawl doors (tons) 4.5 7.0 1.56
• Crew (number.) 14 14 1.00
• Electronics echo sounder echo sounder
• Catch sensor catch sensor
• trawl sensor
• GPS

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Table 3Development in size for different
gears, 1988 - 2003 .

• Gear- Gear Gear
• dimension dimension factor (R)
• Gear 1988 2003 1998-2003
• Shrimptrawl 168 294 3.00
• Cod trawl 60 120 2.00
• Blue whiting trawl 1200 2400 4.00
• Purse seine 105 280 180 000
  1.71
• Long line 20 000 35 000 1.75
• Source Norwegian gear producers and fishermen,
  2004.

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Tabell 4Formula, estimating technical development
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Tabell 5Technical capacity development entire
fleet above 28 meters, 1988 og 2003.
Number vessels Number vessels Number vessels Capacity factor (K) Capacity factor (K) Group capacity Group capacity Capacity change Capacity change Rel. change
Length group 1988 2003 change 1988 2003 1988 2003 Net ch. Change. Rel. change
Loa 28 - 39,9m 232 93 -60 0.93 1.86 215 173 -43 -20 -6
Loa 40 - 49,9m 125 107 -14 1,96 3,04 245 325 80 33 10
Loa 50 - 59,9m 74 74 0 3,80 5,11 281 378 97 34 12
Loa 60 m 43 88 105 5.43 9.82 233 864 631 270 84
Sum Ocean fleet 474 362 -24     1034 1865 832 82 100
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Capacity calculations for the Norwegian Ocean going Fleet, 1988 and 2003
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Institutional boundaries and technological
adaptations, Norway.

• Unregulated species in Norwegian fisheries, 2004
  (tons)
• Blue whiting 852 000 Total Nowegian catch 2
  549 000 tons.
• Shrimp 60 000
• Tusk/ling 27 000
• Horse mackerel 10 000
• Other 30 000
• Total (unreg.) 979 000 38. 40 of total
  ctach.
• Source, Fisheries Directorate, 2006.
• Technology does not follow the institutional
  boundaries
• Combination of closed and restricted open access
  fisheries
• Capacity expanding adaptations !

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Table 6Norwegian catches blue whiting, 1988 and
2003.
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Tabell 7Norwegian catches shrimp, 1988 and 2003.
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Capacity feedback systems
Stock
(border)
TAC
Cod, herring, mackerel, etc.
Allocation policy (output)
Institutional boundaries
Institutional boundaries
Structure policy (markets)
Restricted open access /combined fisheries
Restricted open access /combined fisheries
Capacity (input)
Capacity feedback
Capacity feedback
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The Unit Quota System, 1984-2006.

• Year No. of quotas Duration No. of
• pr. vessel (years) quota-markets
• 1984-1997 2 13 3
• 1997-2003 3 18 3
• 2004 -2005 3 eternal 1
• 2005- 3 20/25 1

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Developent, number of vessels and average
quotafactors, cod trawlers, 1991-2006.
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Distribution of quota factors, cod trawlers,
2006.
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Future challenges- technological development?

• Stagnated technology (path dependency and a
  predictable pattern)
• No paradigmatic innovations sice the 70s
  (excpept for electronics, GPS etc.).
• Heavy fuel consumption, strong increase in fuel
  costs
• Deep sea fleet towards a critical mass in regard
  to innovations?
• No. Of vessels, 2008 2015
• Cod / shrimp trawlers 50 decline
• Herring/mackerel/blu whiting 47 decline
• Long lining 25 decline
• Loosing out of the national innovation system?
• The deep sea fleet as future market for todays
  manufacturers of equipment ?
• Further pressure on todays structural policy or a
  change towards ITQ.