SCHWINDT, Richard
Net loss : a cost-benefit analysis of the Canadian Pacific Salmon Fishery - 2000
This article applies cost-benefits analysis to the Canadian Pacif commercial salmon fishery. It demonstrates that government policies to preserve the fishery have resulted in higher net social costs then would have resulted from a "do nothing" policy, notwithstanding the rent dissipation associated with unconstrained resource exploitation. The value of landings and the private costs of the harvest over a cycle (1988-1994) are calculated. On average, fishers extracted rents of C$ 34.7 million (in constant 1995 Canadian dollars) annually. The public costs of enhancing the resource and organizing and policing the harvest are estimated. When these costs are included in the calculation, net benefits drop to an average of negative C$ 55.6 million annually. This translates into a net present value (NPV) of the salmon fishery of negative C$ 784. The effects on NPV of both modest policy changes implemented in 1996-1997 and of a more dramatic but credicle fleet rationalization program are provided. The results indicate that futher policy change is called for. More generally, the study shows that policy reform that would significantly benefit both the private sector (through reduced rent dissipation) and the public sector (through reduced government expenditures) can be surprisingly difficult
Net loss : a cost-benefit analysis of the Canadian Pacific Salmon Fishery - 2000
This article applies cost-benefits analysis to the Canadian Pacif commercial salmon fishery. It demonstrates that government policies to preserve the fishery have resulted in higher net social costs then would have resulted from a "do nothing" policy, notwithstanding the rent dissipation associated with unconstrained resource exploitation. The value of landings and the private costs of the harvest over a cycle (1988-1994) are calculated. On average, fishers extracted rents of C$ 34.7 million (in constant 1995 Canadian dollars) annually. The public costs of enhancing the resource and organizing and policing the harvest are estimated. When these costs are included in the calculation, net benefits drop to an average of negative C$ 55.6 million annually. This translates into a net present value (NPV) of the salmon fishery of negative C$ 784. The effects on NPV of both modest policy changes implemented in 1996-1997 and of a more dramatic but credicle fleet rationalization program are provided. The results indicate that futher policy change is called for. More generally, the study shows that policy reform that would significantly benefit both the private sector (through reduced rent dissipation) and the public sector (through reduced government expenditures) can be surprisingly difficult
