Fishing rights auctions in the fisheries of Lake Peipsi-Pihkva, Estonia

Abstract  To deal with excessive fishing capacity, a part of the fishing rights, both volume quotas and gear use rights, in all Estonian fisheries was allocated each year during 2001–2003 through auctions while the remainder was allocated on the basis of the recent fishing rights use history. All fishing rights depreciated in a geometric manner by 10% annually. This was carried out for the first time in 2001, but the system was abandoned for political reasons in 2003. In this paper, the development of the small-scale Estonian inland fisheries, as well as the results of the auctions of fishing rights in those fisheries, are discussed. The auctions led to some increase in the number of owners of fishing rights. In most cases, however, new enterprises were formed on the basis of fishers active up to 2001 as employees of other enterprises. The auctions did not lead to a concentration of ownership of fishing rights in large enterprises. On the contrary, the share of smaller owners increased. According to the Fishing Act, in Estonia there is a fishing fee for all professional fishing gears. The official fishing fee was always used as the starting price in bidding, and this increased greatly during the bidding. Finally, the auction system served as a real incentive for fishers to cooperate more than they did during the previous management system based only on earlier rights.