Distributional and Efficiency Effects of Marine Protected Areas: A Study of the Northeast Atlantic Cod Fishery

Abstract

We study the distributional and efficiency effects of marine protected areas using the Northeast Atlantic cod stock as an example. A model with two players targeting different age groups of cod is developed to examine how protected areas may affect payoffs to the players under cooperation and non-cooperation. We find that depending on the ex ante and ex post management regime, win-win, lose-lose, or win-lose outcomes may emerge with the implementation of marine protected areas. When the ex post management is cooperation, both players gain, while ex post non-cooperative behavior results in gains only to one of the players. (JEL Q22, Q28)