Introduction of an Individual Quota (IQ) System to Japan’s Fishing Industry: An Economic Analysis
Individual quota (IQ) systems are effective methods of management of fisheries resources and are being implemented by nations throughout the world. Japan’s first IQ system was introduced to the Alaskan pink shrimp pot fishery in the Akadomari region of Sado Island. This chapter examines the resulting change in the unit prices of the shrimp shipped from this shrimp pot fishery. The results demonstrate that by reducing competition with the trawl net fishery and allowing operation during summer, the introduction of an IQ system realized the advantage of enabling shipments of shrimp during the high-price, high-demand period. The IQ system offers shrimp pot fishers an economic incentive to catch and ship as much as possible of their allotted volume of shrimp in the highest-priced period.
KeywordsIndividual quota (IQ) system Japan’s fishing industry Shrimp pot fishery Alaskan pink shrimp Market price Avoidance of competition Economic incentive
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