New Zealand’s quota management system: the first ten years

This paper has two aims. First, New Zealand’s quota management system is analysed using a simple analytical economic model. Second, the paper describes how the system has evolved in response to pressures since implementation. The quota management system has provided a remarkably robust platform for addressing fisheries management problems during its first ten years of operation. It also provided the government with an instrument for settling Maori fishing claims. In 1996, the unsubsidised New Zealand fishing industry exported most of its harvest to highly competitive international markets. The paper concludes with a discussion of contemporary challenges.