Cost-benefit analysis of the Greenland offshore shrimp fishery

Author: Vestergaard Niels   Stoyanova Kristiana   Wagner Claas  

Publisher: Routledge Ltd

ISSN: 1650-7541

Source: Acta Agriculturae Scandinavica, Section C - Economy, Vol.8, Iss.1, 2011-04, pp. : 35-47

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Abstract

This paper examines the social economic value of the Greenland offshore shrimp fishery. The contribution of fishery to the economy is examined using a cost-benefit analysis in which the objective of the report is to examine the current state of fishery rather than possible changes.The analysis is undertaken by assessing the economic state and development of fishery, as well as the changes in profits, sales and production in the years 2006 and 2007. Financial accounts and costs data provided by the companies fishing in Greenland have contributed to estimating the net economic value of the industry. As management cost is part of the social cost of fishery, this is included in the analysis as well. The paper concludes that there is a positive economic net benefit from the shrimp fishery in Greenland, which is believed to be caused by the efficient management system of fishery (based on an individual transferable quota system). It is further shown that the companies and the crew retain nearly the whole net benefit from fishery, while the public finance is not gaining much.