Putting theory into practice: Individual transferable quotas in New Zealand's fisheries

Abstract
New Zealand's implementation of an individual transferable quota (TTQ) management system in 1986 for most of its fisheries is being observed closely worldwide. We describe New Zealand's TTQ system and analyze the first 5 years of the New Zealand experience. We use Copes's (1986) paper as a catalyst to compare his assessment of potential problems of individual quotas with the actual operation of individual quotas in New Zealand. The brief New Zealand TTQ experience demonstrates that the economic rationale behind individual transferable quotas is sound. We discuss the problems and positive effects of New Zealand's experience. Individual transferable quotas should not be viewed as a panacea, but simply as another fisheries management option.