Economic Impacts of Red Tide Events on Restaurant Sales

The economic impact of red tide events were examined for three Southwest Florida waterfront restaurants. Daily gross sales from January 1996 through September were analyzed using a multiple regression time series model to examine whether the presence of a red tide, as measured within three and six miles of the beach, reduced sales revenues. Preliminary results indicate that red tide blooms closer to shore had a significantly large negative influence on sales revenues across restaurant locations.Agribusiness,

FIRM-LEVEL HEDONIC ANALYSIS OF U.S. PRODUCED SURIMI: IMPLICATIONS FOR PROCESSORS AND RESOURCE MANAGERS

Firm-level data on U.S. produced surimi, the only seafood product that is graded on the objective measurement of several quality characteristics, are used to estimate the effect of production variables (e.g., hours between harvest and processing) and policy variables (e.g., fishing seasons) on product characteristics. Transactions data are then used to estimate hedonic equations and derive implicit prices for each characteristic of surimi used to produce seafood analogs and traditional products in the U.S. and Japanese markets, respectively. Implicit prices are also estimated for surimi grade, production location (onshore, at-sea), and production date. Results indicate that several factors (including species) significantly affect surimi characteristics. Color and gel strength have the largest price impact, and market conditions alter the relative prices associated with improving certain characteristics. Overall results demonstrate that management decisions that affect fish quality—and, therefore, processed product quality and price—directly affect the wholesale value of the fishery.Resource /Energy Economics and Policy,

Portfolio Analysis for Optimal Seafood Product Diversification and Resource Management

Future harvests from commercial fish stocks are unlikely to increase substantially due to biological and regulatory constraints. Developing alternative sets of processed seafood products is one strategy for increasing welfare while managing the risks inherent in a variable and renewable natural resource. To quantify the risk-benefit tradeoffs of alternative strategies, a portfolio decision framework is embedded into a multi-period bioeconomic model. The model is used to generate an efficient portfolio frontier to estimate possible rent dissipation from status quo management. Frontiers are also generated for seafood processors and brokers. Implications for the different industry agents are discussed.bioeconomic analysis, dynamic optimization, Markowitz, Pacific whiting, portfolio analysis, resource management, seafood processing, Resource /Energy Economics and Policy,

Reported Trip Costs, Gross Revenues, and Net Returns for U.S. Atlantic Pelagic Longline Vessels

Logbook set and trip summary data (containing catch and cost information, respectively) collected by NOAA’s National Marine Fisheries Service (NMFS) were analyzed for U.S. pelagic longline vessels that participated in Atlantic fisheries in 1996. These data were augmented with vessel information from the U.S. Coast Guard. Mean fish weights and ex-vessel prices from NMFS observers and licensed seafood dealers, respectively, were used to estimate gross revenues. Comparisons revealed that net returns varied substantially by vessel size and fishing behavior (i.e. sets per trip, fishing location, season, and swordfish targeting). While the calculated economic effects of proposed regulations will depend on the descriptive statistic chosen for analysis, which itself depends on the type of analysis being conducted, results show that considering heterogeneity within this fleet can have a significant effect on predicted economic consequences

Predicting Optimal Targeting Strategies in Multispecies Fisheries: A Portfolio Approach

When regulations are species specific but the species are part of a multispecies fishery, studies show that harvest rates are correlated such that net revenues attributed to each species are also correlated. This correlation suggests that portfolio theory is well suited for multispecies fisheries that exhibit joint productive characteristics. This paper uses a portfolio approach to model the behavior of fishermen faced with multiple targeting options in a random harvest fishery. The approach draws from the expected utility hypothesis and financial portfolio theory to predict optimal targeting strategies. The methodology is applied to the pelagic longline fleet operating in the U.S. Atlantic Ocean, Caribbean, and Gulf of Mexico. The model provides evidence that area closures aimed at reducing juvenile swordfish mortality will be more effective in certain regions. Efficient risk-return frontiers are also generated for use in predicting targeting behavior in lieu of a closure.fisheries economics, fisheries management, highly migratory species, multispecies fisheries, portfolio theory, swordfish, targeting strategies, Resource /Energy Economics and Policy, Q22, G11, D81, C61,

INCORPORATING STOCHASTIC HARVESTS INTO AN ANALYSIS OF PRODUCTION: THE U.S. ATLANTIC AND GULF OF MEXICO PELAGIC LONGLINE FLEET

Vessel operators maximize expected utility indirectly through cost-minimizing production decisions subject to stochastic harvests. Data on the Atlantic longline fleet, available from NMFS logbooks, is used for the empirical analysis. An ex ante multi-input cost function that incorporates expected rather than realized output levels is estimated and results are reported.Resource /Energy Economics and Policy,

Optimal Rebuilding of Fish Stocks in Different Nations: Bioeconomic Lessons for Regulators

Under the rubric of sustainable fisheries, nations are mandated to rebuild overfished stocks. Although rebuilding strategies are almost universally directed by the available biological information, approaches vary depending on fishery laws, management objectives, and technical guidelines. For example, rebuilding schedules in the United States are primarily designed to achieve rapid rebuilding of biomass and spawning stocks consistent with the biological characteristics of the resource. In contrast, New Zealand has greater flexibility in rebuilding stocks in order to consider economic, social, and cultural needs. In this paper we investigate potential economic costs to the fishery that result by limiting the US manager’s flexibility in choosing a recovery trajectory. Using numerical models for moderate- and long-lived stocks, the analysis reveals that depending on productivity of the stock and the discount rate, extending the rebuilding timeframe can substantially increase annual harvests and economic benefits. The results underscore the importance of economic analysis in crafting flexible rebuilding schedules that account for the unique characteristics of the fisheries, including economic and social needs.Fisheries economics, fisheries management, K-selective species, rebuilding., Resource /Energy Economics and Policy, Q22, C61,

A BIOECONOMIC ANALYSIS OF MANAGEMENT ALTERNATIVES FOR THE U.S. NORTH ATLANTIC SWORDFISH FISHERY

A bioeconomic model of the North Atlantic swordfish (Xiphias gladius) fishery is developed to evaluate policy-relevant management options as changes from the status quo. The model accounts for heterogeneity in vessel and trip characteristics, including the number of sets placed and catch composition. Results indicate that five-year economic returns to the U.S. Atlantic pelagic longline (PLL) fleet can be increased by reducing juvenile swordfish mortality or fleet size (and possibly changing fleet composition). These policies may not be effective, however, if implemented simultaneously. Domestic management of the swordfish fishery was found to be effective, despite the small share of the international quota. Lastly, producer surpluses earned by the domestic PLL vessel owners are significantly affected by: (1) changes in swordfish demand (due to, for example, the recent chef's boycott), (2) success at negotiating the swordfish quota share, (3) catch rates, and (4) relative costs of heterogeneous vessels and trip behavior.Resource /Energy Economics and Policy,

A Double Hurdle Model of Preferences for a Proposed Capacity Reduction Program in the Atlantic Shark Fishery

The Atlantic shark fishery is considered to be overcapitalized. One approach to capacity management is the purchase and permanent retirement of fishing vessels, fishing permits, or both under voluntary buyback programs. Representatives of the commercial shark fishery have proposed such an approach to manage the overcapacity in their fishery in the Gulf of Mexico and Atlantic regions. This program would allow owners to submit willingness-to-accept (WTA) bids for their permits and vessels. This study uses econometric modeling to explain the potential participation and bid amounts from a survey of permit owners.Resource /Energy Economics and Policy,

Public Awareness and Knowledge of Red Tide Blooms

We measured the knowledge of Southwest Florida residents regarding red tides by surveying 1,006 randomly selected individuals. Although 89% were aware of red tides, 72% erroneously believed that finfish and crustaceans were unsafe to eat and that waters were unsafe for swimming during a red tide. Because respondents primarily rely on newspapers and television (70% and 62%, respectively), these media should be pursued in Extension efforts to correct these misunderstandings and reduce revenue losses to local businesses. Costly brochures, workshops, and Internet sites do not warrant additional educational efforts at this time because only 6% of respondents identified those sources