Economics

Multiscale Spatial Pattern in Nonuse Willingness to Pay: Applications to Threatened and Endangered Marine Species

Johnston RJ, Jarvis D, Wallmo K, Lew DK. Multiscale Spatial Pattern in Nonuse Willingness to Pay: Applications to Threatened and Endangered Marine Species. Land Economics [Internet]. 2015 ;91(4):739 - 761. Available from: http://le.uwpress.org/content/91/4/739.abstract
Freely available?: 
No
Summary available?: 
No
Type: Journal Article

This paper demonstrates methods that may be combined to characterize otherwise undetectable spatial heterogeneity in stated preference willingness to pay (WTP) estimates that may occur at multiple geospatial scales. These include methods applicable to large-scale analysis with diffuse policy impacts and uncertainty regarding the appropriate scales over which spatial patterns should be evaluated. Illustrated methods include spatial interpolation and multiscale analysis of hot/cold spots using local indicators of spatial association. An application to threatened and endangered marine species illustrates the empirical findings that emerge. Findings include large-scale clustering of nonuse WTP estimates at multiple scales of analysis.

Bio-economic modelling for marine spatial planning application in North Sea shrimp and flatfish fisheries

Bartelings H, Hamon KG, Berkenhagen J, Buisman FC. Bio-economic modelling for marine spatial planning application in North Sea shrimp and flatfish fisheries. Environmental Modelling & Software [Internet]. 2015 ;74:156 - 172. Available from: http://www.sciencedirect.com/science/article/pii/S1364815215300566
Freely available?: 
No
Summary available?: 
No
Type: Journal Article

Marine activities have been increasingly competing for space and reducing areas for fishing. The use of spatially explicit tools can assist the decision making process on defining the optimal location of closures for fishing due to these emerging activities.

This paper presents the Spatial Integrated bio-economic Model for FISHeries (SIMFISH). In this model fishers behaviour is simulated based on optimal effort allocation. The added value of this model compared to other existing spatial management tools lies in the presence of (i) short and long term fishers behaviour (ii) spatial explicit stock and fleet dynamics and (iii) relatively low data requirements.

As an illustration, SIMFISH is applied in this paper to estimate the impact of area closures in the North Sea. Overall area closures have a negative impact on the profitability of the fleets. This would be worsened with higher fuel prices and decreased stock productivity.

NOAA Report on the U.S. Ocean and Great Lakes Economy

Anon. NOAA Report on the U.S. Ocean and Great Lakes Economy. Charleston, SC: NOAA Office for Coastal Management; 2015. Available from: http://www.coast.noaa.gov/data/docs/digitalcoast/econ-report.pdf
Freely available?: 
Yes
Summary available?: 
No
Type: Report

According to the report, additional key coastal economic 2012 facts included:

  • $113 billion in annual wages
  • 3.8 percent growth in employment, more than twice the 1.8 percent national rate
  • 147,000 total business establishments
  • 108,000 new jobs created
  • Salaries were above the national average for workers in marine construction, ship and boat building, marine transportation, and offshore mineral extraction. The national average for wages was $49,000; for the ocean and Great Lake industries, the national average ranged from $63,000 to $143,000.

In addition, the U.S. ocean and Great Lakes economy is a strong contributor to the economy of many states:

  • California employed the highest number of workers, accounting for 17 percent of the nation’s ocean-dependent employment and 22 percent of the nation’s employment in the marine transportation sector.
  • Texas contributed the most to the nation’s ocean GDP, mainly from offshore mineral production. Texas alone produced 35 percent of the ocean-dependent GDP in 2012.
  • Michigan was the leading state in the growth of Great Lakes and ocean employment. After being severely affected by the economic downturn, Michigan’s ocean employment grew prominently by 8 percent in 2012, much faster than the overall state average of 2.1 percent.

This information was derived from NOAA’s Economics: National Ocean Watch (ENOW) data set. ENOW provides time-series data on the ocean and Great Lakes economy and is available for counties, states, regions, and the nation in a wide variety of formats. These data feature nationally consistent information that helps users understand and manage the diverse economic demands placed on the oceans and Great Lakes.

NOAA’s Office for Coastal Management developed ENOW time-series data and other products using information from the Bureau of Labor Statistics, U.S. Department of Labor, and the Bureau of Economic Analysis, a sister agency of NOAA in the U.S. Department of Commerce.

A Biophysical and Economic Profile of South Georgia and the South Sandwich Islands as Potential Large-Scale Antarctic Protected Areas

Rogers AD, Yesson C, Gravestock P. A Biophysical and Economic Profile of South Georgia and the South Sandwich Islands as Potential Large-Scale Antarctic Protected Areas. In: Advances in Marine Biology. Vol. 70. Advances in Marine Biology. Elsevier; 2015. pp. 1 - 286. Available from: http://www.sciencedirect.com/science/article/pii/S0065288115000048
Freely available?: 
No
Summary available?: 
No
Type: Book Chapter

The current hiatus in the establishment of a network of marine protected areas (MPAs) in the Antarctic means that other routes to conservation are required. The protection of overseas territories in the Antarctic and sub-Antarctic represents one way to advance the initiation of such a network. This review of the physical and biological features of the United Kingdom (U.K.) overseas territories of South Georgia and South Sandwich Islands (SGSSI) is undertaken to estimate the importance of the islands in terms of marine conservation in the Southern Ocean and globally. The economy and management of SGSSI are also analysed, and the question of whether the islands already have sufficient protection to constitute part of an Antarctic network of MPAs is assessed. The SGSSI comprise unique geological and physical features, a diverse marine biota, including a significant proportion of endemic species and globally important breeding populations of marine predators. Regardless of past exploitation of biotic resources, such as seals, whales and finfish, SGSSI would make a significant contribution to biological diversity in an Antarctic network of MPAs. At present, conservation measures do not adequately protect all of the biological features that render the islands so important in terms of conservation at a regional and global level. However, a general lack of data on Antarctic marine ecosystems (particularly needed for SGSSSI) makes it difficult to assess this fully. One barrier to achieving more complete protection is the continuing emphasis on fishing effort in these waters by U.K. government. Other non-U.K. Antarctic overseas territories of conservation importance are also compromised as MPAs because of the exploitation of fisheries resources in their waters. The possible non-use values of SGSSI as well as the importance of ecosystem services that are indirectly used by people are outlined in this review. Technology is improving the potential for management of remote MPAs, particularly in the context of incursion by illegal fishing activities and use of satellite surveillance for enforcement of fisheries and conservation regulations. The conflict between commercial exploitation and conservation of Antarctic marine living resources is explored.

Experimental analysis of the use of fishery closures and cooperatives to reduce economic rent dissipation caused by assignment problems

Emery TJ, Tisdell J, Green BS, Hartmann K, Gardner C, León R. Experimental analysis of the use of fishery closures and cooperatives to reduce economic rent dissipation caused by assignment problems. ICES Journal of Marine Science [Internet]. 2015 :fsv148. Available from: http://icesjms.oxfordjournals.org/lookup/doi/10.1093/icesjms/fsv148
Freely available?: 
No
Summary available?: 
No
Type: Journal Article

Assignment problems in quota-managed fisheries are caused by spatial and temporal heterogeneity in the productivity of the stock. If the quota management system is not fully delineated (e.g. harvest rights assigned to particular areas) then fishers will compete with each other and overexploit parts of the fishery where or when the quota unit value is highest (i.e. fishing costs low and/or market price high), leading to economic rent dissipation. This study used experimental economics to assess the effectiveness of fishery temporal closures and income-sharing fishery cooperatives in resolving assignment problems across three different fisheries with varying levels of fisher heterogeneity (i.e. numbers of quota owners and lease quota fishers). While most fisheries were successful in reducing economic rent dissipation under the fishery closure management structure relative to their baseline(s), fisheries characterized by a greater number of lease quota fishers were less effective. This was due to the differential values that lease quota fishers place on the resource relative to quota owners, due to having insecurity of tenure and diminished wealth in having to bid for a quota package and pay for it using their revenue from fishing. Conversely, income-sharing fishery cooperatives were equally successful across all three fisheries in reducing assignment problems relative to their baseline(s). This was because income-sharing created an incentive to coordinate fishing effort, particularly among heterogeneous groups. While requiring further exposition in the field, these experimental results represent a first step in identifying management institutions that may assist fishers under quota management to resolve assignment problems in a dynamic environment.

Economic influence of location in floating offshore wind farms

Castro-Santos L, Diaz-Casas V. Economic influence of location in floating offshore wind farms. Ocean Engineering [Internet]. 2015 ;107:13 - 22. Available from: http://www.sciencedirect.com/science/article/pii/S0029801815003388
Freely available?: 
No
Summary available?: 
No
Type: Journal Article

This paper aims to determine the influence that location has in the life-cycle of a floating offshore wind farm. For this purpose several steps have been considered: determination of the location variables, formulation of the costs whose value depends on these location variables, development of the location economic indexes based on the Levelized Cost of Energy and the Cost of Power, and introduction of the restricted areas where farms cannot be installed. This method will be applied to the particular case of a floating offshore wind farm with semisubmersible platforms and located in the Galician area (North-West of Spain). Results indicate the best location areas where a floating offshore wind farm can be installed in the region selected. This methodology will be useful to determine the importance of the location settings in terms of a floating offshore wind farm.

Eco2: a simple index of economic-ecological deficits

Sumaila UR, Hotte N, Galli A, Lam VWY, Cisneros-Montemayor AM, Wackernagel M. Eco2: a simple index of economic-ecological deficits. Marine Ecology Progress Series [Internet]. 2015 ;530:271 - 279. Available from: http://www.int-res.com/abstracts/meps/v530/p271-279/
Freely available?: 
Yes
Summary available?: 
No
Type: Journal Article

We present the first joint analysis of the ecological-financial deficits of nations and develop a simple index, the Eco2 index, which is useful in ranking the combined ecological and financial performance of countries. This index includes information on ecological and financial deficits, trade surplus and gross domestic product (GDP) to evaluate the potential impacts of ecological deficits on the overall economic performance of countries. Results show an ongoing trend towards increased ecological deficits, as natural resources are ‘traded’ for financial gain. We argue that countries cannot run large financial deficits forever without negative economic consequences and that globally, it is likewise impossible to ignore our global ecological deficit in the long run. Ecological deficits can only be temporarily and partially addressed by incurring financial costs through imports, bounded by available resource surpluses of other nations and the fact that some of these services are place-specific. Ultimately, ecological deficits jeopardize ecosystem functions, energy sources and the food security of nations, with direct implications for human well-being.

Valuing the ecosystem services of the Chagos: a review of challenges and estimates

Gravestock P, Sheppard C. Valuing the ecosystem services of the Chagos: a review of challenges and estimates. Marine Ecology Progress Series [Internet]. 2015 ;530:255 - 270. Available from: http://www.int-res.com/abstracts/meps/v530/p255-270/
Freely available?: 
Yes
Summary available?: 
No
Type: Journal Article

This study provides a preliminary review of the economic value of the ecosystem goods and services of the Chagos Islands, central Indian Ocean, in the period immediately prior to the designation of the Chagos marine reserve in April 2010. The goods and services valued include inshore and offshore fisheries, shoreline protection, scientific value, the islands’ possible role in supporting southwest Indian Ocean fisheries and in southwest Indian Ocean reef recovery and its value as a unique and unspoiled ecosystem. The goods and services identified were largely intangible, with few associated directly with a market. Both the nature of the subject, particularly the significance of its non-use values and the uniqueness of the site, as well as incomplete data, presented valuation challenges. In order to accommodate these characteristics, estimates of annual economic flow were provided in addition to economic values. The study estimated possible annual economic flows of several hundred million pounds, with an economic value in excess of £1 billion (£109), with the benefits accruing both regionally in the southwest Indian Ocean and globally.

Health, wealth, and education: the socioeconomic backdrop for marine conservation in the developing world

Fisher B, Ellis AM, Adams DK, Fox HE, Selig ER. Health, wealth, and education: the socioeconomic backdrop for marine conservation in the developing world. Marine Ecology Progress Series [Internet]. 2015 ;530:233 - 242. Available from: http://www.int-res.com/abstracts/meps/v530/p233-242/
Freely available?: 
Yes
Summary available?: 
No
Type: Journal Article

Interacting drivers and pressures in many parts of the world are greatly undermining the long-term health and wellbeing of coastal human populations and marine ecosystems. However, we do not yet have a well-formed picture of the nature and extent of the human poverty of coastal communities in these areas. In this paper, we begin to fill the gap and present a multi-dimensional picture of the wellbeing of coastal communities, using nationally representative survey data to examine the health, wealth, and educational status of households in over 38000 communities across 38 developing countries. In general, we found high levels of poverty across the 3 dimensions (health, wealth, and education) analyzed, but each dimension also showed large heterogeneity within and across countries. We found that coastal communities had statistically significant higher levels of wellbeing than non-coastal communities. Coastal children were less stunted, less poor, and more likely to live in a higher educated household when compared to non‑coastal households. However, we found that across coastal communities, rural coastal communities had 1.5 times lower height-for-age standard deviation scores (representing high childhood stunting rates), were 4 times more likely to be poor, and were 1.6 times more likely to have low levels of educational attainment. A deeper understanding of human wellbeing along coasts is critical for generating wider social and more long-term economic benefits with respect to coastal marine management.

Economic incentives and overfishing: a bioeconomic vulnerability index

Cheung WWL, Sumaila UR. Economic incentives and overfishing: a bioeconomic vulnerability index. Marine Ecology Progress Series [Internet]. 2015 ;530:223 - 232. Available from: http://www.int-res.com/abstracts/meps/v530/p223-232/
Freely available?: 
Yes
Summary available?: 
No
Type: Journal Article

Bioeconomic theory predicts that the trade-offs between maximization of economic benefits and conservation of vulnerable marine species can be assessed using the ratio between the discount rate of fishers and the intrinsic rate of growth of the exploited populations. In this paper, we use this theory to identify areas of the global ocean where higher vulnerability of fishes to overfishing would be expected in the absence of management. We derive an index to evaluate the level of vulnerability by comparing discount rates and fishes’ intrinsic population growth rates. Using published discount rates of countries that are reported to fish in the ocean and estimating the intrinsic population growth rate for major exploited fishes in the world, we calculate the vulnerability index for each 0.5° latitude × 0.5° longitude grid for each taxon and each fishing country. Our study shows that vulnerability is inherently high on the northeastern coast of Canada, the Pacific coast of Mexico, the Peruvian coast, in the South Pacific, on the southern and southeastern coast of Africa, and in the Antarctic region. It should be noted that this index does not account for the management regime currently in place in different areas, and thus mainly reflects the vulnerability resulting from the intrinsic life history characteristics of the fish species being targeted and the discount rates of the fishers exploiting them. Despite the uncertainties of this global-scale analysis, our study highlights the potential applications of large-scale spatial bioeconomics in identifying areas where fish stocks are more likely to be over-exploited when there is no effective fisheries management; this applies to many fisheries around the world today.

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