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Abstract
Improving the economic performance of fisheries is becoming increasingly
important in fisheries management, and in some cases, maximum economic yield (MEY) is
set as a key management target. However, associated with MEY is a level of fishing activity
that is lower than would otherwise occur, even in fisheries managed to achieve the maximum
sustainable yield. This will result in losses in economic activity elsewhere in the economy,
potentially resulting in a net loss to society in the short to medium term. In this paper, an
input-output framework is used to estimate the net economic impact of achieving MEY in
Australian fisheries. While incomes are reduced in other sectors of the economy, the net
impact of achieving MEY in fisheries is dependent on how total catches are likely to change
relative to their levels under current management. It is argued that, at least in most Australian
fisheries, achieving MEY will result in a net economic benefit to society. Local communities
are likely to be included among the set of main beneficiaries, with potential losses being
incurred elsewhere in the economy. Sectors that potentially lose as a result of the transition to
MEY previously benefited from overcapitalisation in fisheries, and hence higher incomes in
these sectors were an artefact of the market failure in fisheries.