Multifunctionality in fisheries and the provision of public goods

Multifunctionality is characterized by two key elements: the existence of jointly produced multiple commodity and non-commodity outputs (NCOs), and that NCOs exhibit the characteristics of public goods externalities. The term “multifunctionality” is almost not used outside agriculture. However, several issues discussed in fishery literature and in international contexts clearly refer to public goods provision and joint production. The key point is to recognize if fisheries, similar to agriculture, provide other (public) benefits beyond their primary food supply function. The paper establishes a theoretical framework for the classification and valuation of multifunctionality in fisheries, and outlines policy options to increase (through multifunctionality) social welfare. NCOs include: ecosystem- and biodiversity-related NCOs, other environmental public goods/bads, cultural heritage and coastal viability, coastal employment externalities, food security, and strategic benefits. The main NCO characteristics to be analysed are the degree of jointness between commodity outputs and NCOs, and the distribution of property rights over fish stocks and NCOs. Policy options to increase social welfare include, among others, command and control schemes, market based instruments (e.g., payment for ecosystem services), and marine protected areas. Customary marine tenure institutions, or other modern fishery organizations, may represent a framework for the communitarian provision of NCOs. Fishery subsidies, which can because of overfishing, are justified if they allow increasing social benefits, given by the sum of catch and NCOs value. Particularly, incentives may be necessary to support small-scale fisheries or other less efficient technologies.