A reduction in the quota for Northeast Arctic cod and the income effect on the Norwegian fishing fleet

The paper analyses the economic effect a change in TAC (Total Allowable Catch) will have on the Norwegian fishing industry. For the coming year ICES (International Council for the Exploration of the Sea) has recommended a low total quota (TAC) of Northeast Arctic cod. The background for the restrictive TAC is years with unregistered over fishing, and ICES wants to rebuild and strenghten the stock. The quota of Northeast Arctic cod is shared between Norway, Russia and third countries which get a smaller part. A reduction in the TAC will have economic consequences for the fishing fleet and processing industry in Norway. The analysis shows that the recommended quota for 2007 will reduce the gross income in the Norwegian fishing fleet by about 1 billion NOK compared to the 2006 level.