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How Economic Incentives Can Help the Maine Lobster Industry

How Economic Incentives Can Help the Maine Lobster Industry

From Pavel Gavrilov, About.com Guest

Pavel Gavrilov's Entry For The 2004 Moffatt Prize in Economics

For years now, leading state governmental organizations have told the public that the Maine lobster industry is in deep trouble. Lobstermen have disputed the claim, but the fact remains that something needs to be done to ease the conflict over this issue. Examples such as Port Lincoln, Australia illustrate that the issue can be resolved with both sides achieving their goals. There the lobstermen and the government have worked out a system of quotas which gives the lobstermen the control over their lobstering, and this system has made Port Lincoln a thriving lobstering community, in contrast to the often poor fishing communities of coastal Maine (Tierney 2000, 41-43). This method of incentive-based economics has worked well in Australia and New Zealand, but it remains to be seen whether or not it can function here in the US. We must first understand why lobstermen in Maine are over harvesting their resource. We can then begin to look into how economic incentives can help the Maine lobster to conserve its resources more effectively.

History

Since lobstering began in Maine in the 1840s, the industry has defined the image of the state of Maine, with its tradition deeply rooted in the small coastal villages and towns that dot Maine's shores. To fully understand the conflict among lobstermen and conservationists, it is necessary to know the history the makes the Maine lobster industry unique. The dual-gauge law, limiting maximum and minimum sizes, was first introduced in 1902, and was finally passed in 1934, and was the first major legislation regulating the industry (Gavrilov 2000, 4-5). This was also the first conservative measure the state took and has been regarded as the benchmark for legislation regarding the issue. When Magnuson-Stevens Fishery Conservation and Management Act was passed, it created a zone from 3 to 200 miles out that was federally mandated. This zone made these waters subject to federal lobstering regulations. This was changed with amendments to the Atlantic Coastal Fisheries Management Act in 1996 that allowed Maine lobstermen to fish in these federal waters (Gavrilov 2001, 3). With the passing of these amendments, the Maine lobstermen have now been able to lobster even more than before, which some say has gravely hurt the industry. However, to further spark controversy, over the past decade, Maine lobstermen have been recording record hauls. The question arises, who is more understanding of the lobsters, scientists who study them or the lobster who spend their lives catching them?

Scientists have been claiming the Maine lobster industry is on the brink of collapse since the 1960s. The data and models they used showed that with increasing numbers of lobstermen and colder water temperatures (lobsters breed more in warmer water), the resource was quickly being depleted. Scientists claim that the two main reasons for the recent increase in catches are the warmer water and the movement of lobster populations that they claim happens in cycles we do not yet understand. Lobstermen say that they do understand (Gavrilov 2001, 2-3).

Albert "Skip" Werner has been lobstering his entire life in Cape Elizabeth, Maine. He says that he can remember when lobsters used to be just off the shore. Then they moved further out and it took a while for the lobstermen to realize it, but when they did, they moved their traps further out. Today some of the lobsters have moved back closer to the shore, and some have moved even further out. So while he lobsters by the shore, others pursue the ones further out. "It's all a matter of knowing the hot spots and getting a little lucky," says Skip. "We don't need no scientists to tell us where the lobsters are. Hell, they'd just mix us up."

Be Sure to Continue to Page 2 of "How Economic Incentives Can Help the Maine Lobster Industry".

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