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Generating Value in Habitat-Dependent Fisheries: The Importance Of Fishery Management Institutions

Author

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  • Smith, Martin D.
Abstract
This paper considers the dynamic producer and consumer benefits from improving habitat that supports a commercial fishery under two different fishery management institutions. By coupling state equations that represent the effects of estuarine eutrophication on fish populations with a multispecies, two-patch spatial bioeconomic model that endogenizes output price through residual demand, the analysis computes welfare changes from a major reduction in nutrient pollution. This, in turn, reduces the incidence of hypoxia (low dissolved oxygen) and enhances prey availability. The North Carolina blue crab fishery serves as the empirical application, and water quality improvements pertain to the Neuse River Estuary and the contiguous Pamlico Sound. The analysis simulates dynamic rent and consumer surplus changes from a 30% decrease in nitrogen loading under both open access (the status quo) and a partially rationalized fishery (constant total effort). Producer benefits from the environmental quality change are higher for the rationalized fishery than for open access but are of the same order of magnitude for some parameter values. Consumer benefits are larger than producer benefits and are comparable across institutions. However, the total benefits from improving environmental quality are small relative to the benefits from rationalizing the fishery and leaving environmental quality the same.

Suggested Citation

  • Smith, Martin D., 2005. "Generating Value in Habitat-Dependent Fisheries: The Importance Of Fishery Management Institutions," Working Papers 05-12, Duke University, Department of Economics.
    • Handle: RePEc:duk:dukeec:05-12
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    References listed on IDEAS

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    Cited by:

    1. Cuilleret, Mathieu & Doyen, Luc & Gomes, Hélène & Blanchard, Fabian, 2022. "Resilience management for coastal fisheries facing with global changes and uncertainties," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 634-656.
    2. Mathieu Cuilleret & Luc Doyen & Hélène Gomes & Fabian Blanchard, 2021. "Resilience-based management for small-scale fisheries in the face of global changes and uncertainties," Bordeaux Economics Working Papers 2021-20, Bordeaux School of Economics (BSE).
    3. Huang, Ling & Smith, Martin D., 2011. "Management of an annual fishery in the presence of ecological stress: The case of shrimp and hypoxia," Ecological Economics, Elsevier, vol. 70(4), pages 688-697, February.
    4. Barbier, Edward B., 2012. "A spatial model of coastal ecosystem services," Ecological Economics, Elsevier, vol. 78(C), pages 70-79.
    5. Cropper, Maureen L. & Isaac, William, 2011. "The Benefits of Achieving the Chesapeake Bay TMDLs (Total Maximum Daily Loads): A Scoping Study," RFF Working Paper Series dp-11-31, Resources for the Future.
    6. Kroetz, Kailin & Kuwayama, Yusuke & Vexler, Caroline, 2019. "What is a Fish Out of Water? The Economics Behind the Joint Management of Water Resources and Aquatic Species in the United States," RFF Working Paper Series 19-09, Resources for the Future.

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    More about this item

    Keywords

    ecosystem services; open access; bioeconomics; spatial fishery;
    All these keywords.

    JEL classification:

    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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    1. Socio-economics of Fisheries and Aquaculture

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