Instruments for internalising the environmental externalities in commercial fisheries : report to Ministry of Fisheries

Abstract

Commercial fisheries in New Zealand having significant environmental externalities are identified and a framework for comparative Environmental Impact Assessment is proposed. From this analysis and from a survey of international literature covering the spectrum of resource sectors a range of 21 instruments within five broad categories is proposed as having potential for application within commercial fisheries management. These categories are: Regulatory approaches (9 instruments), Financial incentives (5 instruments), Voluntary approaches (4 instruments), Legal Remedies (1 instrument), and Education and Information Supply (2 instruments). Most of the regulatory and financial instruments have had some application in New Zealand, although 'environmental performance bonds' (used extensively in mining) might have potential for application to some fisheries. Voluntary approaches are being developed and there is potential for much further application in New Zealand, subject to auditing-type requirements. Legal remedies (tort law) and 'Informal regulation', including corporate environmental reporting, also offer potential as internalisation instruments. The major challenge facing fisheries managers is how to determine which instrument or combination of instruments is most likely to be effective in internalising the externality(s).