What is it about?
On the surface of the blue-green planet people have fought over the green bits for eons. However, because they didn’t seem worth fighting over, they have hardly bothered with the blue bits. Strange as it might seem, the green bits are quite well tended while the blue bits are in awful disrepair. Why is this? This book helps us find out.
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Why is it important?
This book is important because it is the first comprehensive study of the use of ocean resources - fish, marine mammals, coral reefs ,coastal wetlands, offshore oil, deep sea mining, marine protected areas; and there are also chapters on the law and economics of enclosure of the oceans by coastal states, marine pollution, the recovery of values from historic shipwrecks and the policing the oceans against piracy. But who owns the oceans? The answer is that within agreed exclusive economic zones coastal states have sovereign rights where national laws apply; beyond lies the two-thirds of the oceans called the ‘high seas’. These could be governed under a ‘common heritage of mankind’ doctrine but aren’t; instead loose and often ineffective international public law applies. Much of this book is about the need for and progress of attempts to bring ocean resources under effective international law that promotes the rational use of ocean resources. As is shown, progress is limited. Economic theory is used to assess existing regimes, as defined in law, governing the use of these resources. Two broad questions are of importance: are existing governance regimes economically rational in making best use of ocean resources? And, how are economic rents distributed between producers - such as the fishing industry or offshore oil companies on the one side, and the sovereign owners of the submerged lands? Simple game theory is used to analyze governance-regime formation and operation. Environmental economics is used to analyze issues arising from the oceans as a commons. Theories of industrial organization are used in the analysis of some ocean industries; a ‘law and economics’ framework is used to analyze laws governing the recovery of economic values from historic shipwrecks. Benefit-cost analysis is used in the analysis of issues such as the drawing of marine boundaries (‘lines in the sea’) and the formation of joint development zones. Theories drawn from auction theory will be used in the analysis of offshore lease block sales and economic rent sharing. Standard fisheries economics is used to analyze fisheries regimes; and spatial economics is applied to assess the design of marine protected areas. Policing the oceans against maritime pirates is discussed in a public goods framework in which free riding and under-enforcement is a problem.
Perspectives
On the surface of the blue-green planet people have fought over the green bits for eons. However, because they didn’t seem worth fighting over, they have hardly bothered with the blue bits. Strange as it might seem, the green bits are mainly well tended while the blue bits are in awful disrepair. Why is this? Let’s see if we can find out.
Paul Hallwood
University of Connecticut
Read the Original
This page is a summary of: Economics of the Oceans, February 2014, Taylor & Francis,
DOI: 10.4324/9780203083611.
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