Mitigating Damages From Coastal Wetlands Development: Policy, Economics and Financing

Abstract

This paper looks at the problem of modeling the welfare consequences of the effects of environmental changes on the bioeconomic equilibrium of fisheries. The equilibrium catch equation is suggested as the most appropriate mechanism for modelling these effects. Several different models are presented, based on the availability of data. It is shown that a model in which the equilibrium catch function is estimated directly as a function of environmental quality will be superior to a model which takes the stock effects from an independent ecosystem model. Models are also suggested for those cases in which only proxies for stock levels are available, and for those cases in which no stock data are available.Environmental Economics and Policy, Land Economics/Use, Public Economics, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy, Risk and Uncertainty,