Putting Economics into Maximum Economic Yield Marine Resource Economics

Maximum economic yield (MEY) can be extended along two dimensions beyond the common resource stock externality: (1) the appropriate measurement of costs and benefits and (2) extending MEY beyond the relationship between the harvest sector and the resource stock externality. Only when all economic distortions are accounted for and valued by economic (shadow) prices does MEY actually represent a full economic optimum. Accounting for dynamic technical and allocative efficiency extends MEY beyond the traditional dynamic scale efficiency. When accounting for accumulated and new technology and nonmarket public good benefits from biodiversity and ecosystem services, an open question remains whether the MEY resource stock exceeds, equals, or falls short of the MSY resource stock. Without no-growth, steady-state equilibrium, adaptive management is required using non-autonomous bioeconomic models or continuous updating of autonomous ones.