The Effects of Processor-Allocated Quota in IFQ Programs: An Analysis of the West Coast Groundfish Trawl Fishery

Much of the literature in fisheries economics focuses on the harvesting sector. Due to lack of data, a less explored area is how the fish processing industry is affected by fishery management strategies. The West Coast Groundfish Trawl Catch Share Program was implemented in 2011 and introduced an unprecedented feature which allocates 20% of the Pacific whiting harvesting quota to eligible processors. This paper combines a unique dataset of company-level cost-earnings information on shorebased processors with fish ticket and quota transactions data. We assess the mechanisms with which processor-allocated quota is utilized and the impact on Pacific whiting landings and ex-vessel revenue, as well as explore the possibility of spillover effects in other fisheries.