Vestergaard, Niels Stoyanova, Kristiana A. Wagner, Claas
Year of Publication:
IME Working Paper 98
This paper examines the social economic value of the Greenland off-shore shrimp fishery. The contribution of the fishery to the economy is examined using a cost-benefit analysis where the objective of the report is to examine the current state of the fishery rather than possible changes, which are a political decision. The analysis is undertaken by examining the state and development of the offshore shrimp fishery in Greenland, as well as the changes in profits, sales and production in the years 2006 and 2007. Financial accounts and costs data provided by the companies fishing in Greenland have contributed to estimating the net value of the industry. The management cost is included as well in the analysis. The paper concludes that there is a positive economic benefit from the shrimp fishery in Greenland, which is believed to be caused by the efficient management system of the fishery (based on Individual Transferable Quotas). It is further shown that the companies and the crew gains nearly the whole net-benefit from the fishery, while the public finance are not gaining much.