Shrimp_CapandTrade_Sansom_Andrew_AustinTX_31July2023_Reel4163.mp3

Andy Sansom [00:00:00] The most significant thing that happened to the shrimp industry was limited entry.

Andy Sansom [00:00:07] You know, I wish I still had it. I feel a little bit bad that I gave it back to the department, but I used to have framed on my wall the very first shrimp license that we bought.

Andy Sansom [00:00:18] Because once we capped the number of shrimp boats, then we created a market underneath that, where the only way to get a shrimp license was to buy one from somebody else.

Andy Sansom [00:00:29] And, organizations like CCA raised money to buy people out of the industry.

Andy Sansom [00:00:36] And that wouldn't have worked had you not capped the total number of licenses.

Andy Sansom [00:00:41] And my recollection was that the industry itself, with some exceptions, was supportive of that, because those who held license could still shrimp. It didn't take them out of the business.

Andy Sansom [00:00:55] But it created a market where, in fact their licenses became fairly valuable.

Andy Sansom [00:01:01] I've been very discouraged that that worked so well, that, for example, we haven't been able to use that same approach in groundwater. The only place where we're doing it is in the Edwards, where they've capped the total amount of groundwater that can be taken but allowed for a market to take place.

Andy Sansom [00:01:23] So, you could either buy people out of groundwater pumping or buy permits, but that won't work unless you cap.

Andy Sansom [00:01:31] The common term for it is "cap and trade".

Andy Sansom [00:01:35] But it should be used in other natural resource concerns as well, and particularly groundwater.