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SINTEF Fisheries and Aquaculture Technological change and institutional implications Dag Standal SINTEF Fisheries and aquaculture

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SINTEF Fisheries and Aquaculture 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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SINTEF Fisheries and Aquaculture Table 1 Number of vessels above 28 meters and % change, 1988 and 2003. Length group(m)19882003 % 28 - 39,923293-60 40 - 49,9125107-14 50 - 59,97474 0 60 - 4388 +105 Total :474362- 24 Reduction in number of vessels Structural changes

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SINTEF Fisheries and Aquaculture Table 2 Technical parameters for arctic trawlers built in 1988 2002 (cod/shrimp trawler). Building year:19882002 1988-2002 Lenght (m):61.5064.00 1.04 Breadth (m): 12.8016.60 1.30 Prod. cap (tons):2035 1.75 GRT:19052574 1.35 HP:33428046 2.41 Number of trawls1 3 2.00 Catch (tons)1000-15003000-4000 2-3 Trawl doors (tons): 4.57.0 1.56 Crew (number.):1414 1.00 Electronics:echo sounderecho sounder Catch sensorcatch sensor trawl sensor GPS

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SINTEF Fisheries and Aquaculture Table 3 Development in size for different gears, 1988 - 2003. Gear-GearGear dimension dimensionfactor (R) Gear 198820031998-2003 Shrimptrawl : 1682943.00 Cod trawl: 601202.00 Blue whiting trawl: 120024004.00 Purse seine: 105 280180 000 1.71 Long line: 20 000 35 0001.75 Source: Norwegian gear producers and fishermen, 2004.

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SINTEF Fisheries and Aquaculture Tabell 4 Formula, estimating technical development

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SINTEF Fisheries and Aquaculture Tabell 5 Technical capacity development entire fleet above 28 meters, 1988 og 2003. Number vessels Capacity factor (K)Group capacityCapacity change Rel. change Length group19882003 change %1988200319882003Net ch. Change. % Loa = 28 - 39,9m23293-60 %0.931.86215173-43-20 %-6 % Loa = 40 - 49,9m125107-14 %1,963,042453258033 %10 % Loa = 50 - 59,9m74 0 %3,805,112813789734 %12 % Loa 60 m4388105 %5.439.82233864631270 %84 % Sum Ocean fleet474362-24 % 1034186583282 %100 %

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SINTEF Fisheries and Aquaculture Capacity calculations for the Norwegian Ocean going Fleet, 1988 and 2003

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

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SINTEF Fisheries and Aquaculture Table 6 Norwegian catches blue whiting, 1988 and 2003.

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SINTEF Fisheries and Aquaculture Tabell 7 Norwegian catches shrimp, 1988 and 2003.

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SINTEF Fisheries and Aquaculture Capacity feedback systems TAC Cod, herring, mackerel, etc. Allocation policy (output) Structure policy (markets) Capacity (input) Capacity feedback Restricted open access / combined fisheries Institutional boundaries Stock (border)

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SINTEF Fisheries and Aquaculture The Unit Quota System, 1984-2006. Year :No. of quotas DurationNo. of pr. vessel(years)quota-markets 1984-1997:213 3 1997-2003:318 3 2004 -2005:3eternal 1 2005- :320/25 1

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SINTEF Fisheries and Aquaculture Developent, number of vessels and average quotafactors, cod trawlers, 1991-2006.

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SINTEF Fisheries and Aquaculture Distribution of quota factors, cod trawlers, 2006.

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SINTEF Fisheries and Aquaculture 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, 20082015 Cod / shrimp trawlers: 50decline Herring/mackerel/blu whiting: 47decline Long lining: 25decline 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.