ECONOMICS

Economics is concerned with the efficient allocation of resources between the competing demands of different users. An important aspect of economic efficiency is the economic sustainability of resources. Marine resources include stocks of fish, marine mammals, marine flora, mineral stocks, shipping lanes, areas for recreational activities, marine energy sources and the marine environment in general.

Research economists working in the area of marine science attempt to understand and evaluate the behaviour of producers and consumers of marine resources. Predictions about outcomes, such as the equilibrium level of a fish stock, are generally based on models of a competitive market economy. Much work addresses problems which arise when the market mechanism fails to allocate resources efficiently. Market failure occurs frequently in the allocation of marine resources because of the difficulty of establishing property rights in a marine environment. For example, allowing general access to fish stocks almost always results in economic overfishing so that the stock makes less than its potential contribution to the economy. Economists study the conditions by which fish stocks and other marine resources can contribute the maximum sustainable return to the community.

Economists use mathematical models of economic behaviour coupled with resource models derived from other marine sciences to make their predictions and judgements. These models are usually estimated using statistical techniques and observations on resource use. The data used to carry out econometric analyses are obtained from various sources including surveys of resource users, log books and other records maintained by marine resource users, and data collected by researchers in other marine sciences. Results of economic analyses are used by resource users and policy makers.

A research economist will normally have an honours degree in economics, or a higher degree such as a masters or a doctorate. Preparation for an honours course is usually a three year undergraduate university program in economics. Studies in the areas of natural resource and environmental economics, mathematics and statistics, computing, and the biological and physical sciences are useful in addition to general economics coursework.

Research economists working on marine resources are employed in universities, international commissions, the CSIRO, commonwealth departments (for example the Department of Primary Industry and Energy, the Australian Bureau of Agricultural and Resource Economics, the Australian Fisheries Management Authority, and the Bureau of Resource Sciences), state departments such as fisheries departments, and in areas of private industry such as the fishing, oil and marine recreational industries.

Photo: A valuable catch of orange roughy from southern Australian waters.