Harvesting in a pelagic fishery: The case of Northern Chile

This paper analyses the pelagic fishery of Northern Chile, estimating harvesting functions that contribute to understand why rather poor incentives to exit may predominate in pelagic fisheries, despite scarcer fish stocks. Our results show that pervessel catch's stock sensitivity (the catchtobiomass elasticity value) varies negatively with stock levels. Stock levels preceding a marked fall into biological overfishing would have been associated to biomass elasticities lower than the unitary value. This suggests that during catch bonanza periods, catchperunitofeffort would fail to detect a rapidly declining stock trend, increasing the risk of fishing collapse. Moreover, external economies in search efforts would have reduced the incentives to exit, particularly for the smaller vessels in our sample. Finally, we find evidence of either constant or increasing marginal returns in the use of pervessel fishing effort, which suggests that inefficiency in production has resulted from direct restrictions upon fishing effort. Overall, our findings provide consistent evidence that enhances the necessity of more efficient regulations upon harvesting in pelagic fisheries.