ECONOMICS

Applied economics in marine sciences involves the application of economic principles to the management and utilisation of marine resources. The optimisation of the economic value of a resource, although it may not be the only aim, is an important objective. The application of economic principles requires an understanding of how the market allocates resources between competing users, and of why the market may fail to achieve efficient allocation of marine resources in the absence of full property rights to these resources. Economists need to recognise that government policy in response to market failure may also have its shortcomings.

Applied economists develop and implement policies based on theoretical models of resource use generated and tested in collaboration with researchers from other scientific disciplines. Applied economists are usually part of a multidisciplinary resource management and policy unit and need to have a good understanding of the political and institutional framework governing resource allocation and use.

Examples of the work of applied economists in the marine resources area include studies of markets in fish products, estimating the costs of fishing technology and vessels, costing the production of off-shore oil, examining the economic feasibility of mining deep ocean mineral deposits and offshore oil and gas, estimating the maximum economic yield of fish stocks, estimating the recreational value of marine areas and associated industries, designing market systems for the allocation of fishing rights, assessing the economics of wave and tidal power, and estimating the value of environmental resources such as mangrove forests. Applied economists are often employed by government and international organisations to help appraise maritime and fishery projects in the South East Asian and Pacific Regions.

An applied economist working in marine science will normally have a pass or honours degree in economics. A higher degree is an advantage but not essential. Courses in resource and environmental economics can usually be taken as part of an undergraduate degree. Familiarity with mathematical, statistical and computing techniques is important, and some knowledge of the biological and physical sciences, law and political science is also advantageous. A postgraduate diploma in fisheries or marine science is a useful supplement to an undergraduate training in economics.

Applied economists are employed in international commissions, the CSIRO, commonwealth departments such as the Department of Primary Industry and Energy, the Australian Bureau of Agricultural and Resource Economics, the Australian Fisheries Management Authority, the Bureau of Resource Sciences, state departments, for example the departments of fisheries, and in areas of private industry, such as the fishing and oil industries and economic consulting firms.

Photo: Fish auction in Kobe, Japan.