PT  - JOURNAL ARTICLE
AU  - Grafton, R. Quentin
AU  - Kompas, Tom
AU  - Van Ha, Pham
TI  - Cod Today and None Tomorrow: The Economic Value of a Marine Reserve
AID  - 10.3368/le.85.3.454
DP  - 2009 Aug 01
TA  - Land Economics
PG  - 454--469
VI  - 85
IP  - 3
4099  - http://le.uwpress.org/content/85/3/454.short
4100  - http://le.uwpress.org/content/85/3/454.full
SO  - Land Econ2009 Aug 01; 85
AB  - Using data from what was once one of the world’s largest capture fisheries, the northern cod fishery, the economic value of a marine reserve is calculated using a stochastic optimal control model with a jump-diffusion process. Counterfactual analysis shows that with a stochastic environment an optimal-sized marine reserve in this fishery would have prevented the fishery’s collapse and generated a triple payoff: raising resource rents even if harvesting was “optimal”; decreasing recovery time for the biomass to return to its former state, smoothing fishers’ harvests and resource rents; and lowering the chance of a catastrophic collapse following a negative shock. (JEL Q22, Q57)