The increase in commercial fisheries production over the last 50 years has been
accompanied by an increase in the level of incidental catch and discarding of a
number of speices. Approximately one-quarter of the marine commercial catch
destined for human consumption is discarded at sea. This has aroused the concern
of a number of groups in society, including environmentalists, humanitarians and
fisheries themselves. This paper examines the economic incentives to discard
fish as well as the effects of different management policies on these
incentives. The concept of an optimal level of discarding of discussed taking
into account the externalities that can be created by discarding. Finally, the
paper