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Scrapping vessels and individual transferable quotas – two ways of reducing fishing capacity

Sweden implemented two scrapping campaigns in 2008 and 2009 to reduce fishing capacity in the Baltic Sea and the North Sea trawl fisheries for cod. Totally 140 million SEK were spent on these campaigns. At the same time, a system with individual transferable quotas (ITQ-system) was introduced in the pelagic fisheries (herring, sprat and mackerel) in order to reduce capacity in this fishery, without public funding.

In this project we compare the effects of these policy measures. By using microeconomic data we analyze and compare the development for companies and individuals who participated in the ITQ and scrapping programs. By comparing two different policies with the same goal – to reduce fishing capacity – this study complements earlier evaluations.

The project is expected to be completed in the autumn of 2017.