Market Design for Limited Access Privileges Programs in U.S. Fisheries
Proceedings of a workshop organized by Ecotrust
October 3–4, 2007
Executive Summary
In October 2007, Ecotrust convened a two-day workshop to bring experts in market design together with marine policy “market makers.” Twenty-five people with agency, philanthropic, non-profit and for-profit expertise in the United States, Canada and Mexico joined us at the Harvard Business School to discuss Limited Access Privileges (LAP) programs and market-based incentives for fisheries management.
A key goal of the workshop was to learn from experiences in the design of markets for carbon emissions trading, health care clearinghouses, broadcast spectrum auctions and so on, and to apply that knowledge to the design of Limited Access Privileges programs and marine market instruments.
The workshop was conducted as a structured discussion between the invited experts and regional market makers, and centered on the following agenda elements:
- A synthesis and overview of current Limited Access Privileges programs;
- An overview of market design processes and objectives, with specific reference to the challenges encapsulated in the U.S. Commission on Ocean Policy (USCOP) recommendations;
- Discussion in smaller groups, using New England, West Coast, Gulf of Alaska and Sea of Cortez (Mexico) fisheries as discussion cases;
- A summary of design features identified and risks associated with alternative systems;
- And a discussion of research needs as well as legal or regulatory impediments.
Summary of Results
- A new awareness in the fisheries sector that the concepts of market design can be helpful in addressing market deficiencies
- An appetite within industry to seek real applications of tools in “sub-problems” of different fisheries; e.g. price transparent “all-in” auctions (New England), sector allocation splits (Alaska), bycatch cap-and-trade and spot markets (Alaska, New England), marine protected area design and development (Mexico) and many others
- The idea of a “clearinghouse” to expedite information sharing, project development and practical project implementation
- A greater understanding of the need to:
- Develop and deploy scenario tools that demonstrate how market mechanisms would operate and how benefits would accrue to participants
- Strategize on the development of actual and practical projects in New England, West Coast, Gulf of Alaska/Bering Sea and Aleutian Islands, and Mexico
- Replicate the workshop in various forms, ideally around specific projects and opportunities
- Build “unlikely partner” tactics in the development of package solutions that could make it through fishery management council processes
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