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Time preferences and the management of coral reef fisheries

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  • Johnson, Ayana Elizabeth
  • Saunders, Daniel Kaiser

Abstract

To investigate a potential relationship between financial and marine resource use decisions, we conducted a time preference experiment with 153 fishers and 197 SCUBA divers on Curaçao and Bonaire. The experiment was part of a socioeconomic survey wherein interviewees were asked about their fishing and diving practices, views on fish population and coral reef health, and preferred marine resource management approaches. We use a βδ-model to identify discounting and present bias. Divers had a mean individual discount factor (IDF) of 0.91, significantly higher than fishers' mean of 0.82. Fishers and divers had similar distributions of IDFs and present bias; overall 66% of interviewees were non-biased, 22% future-biased, and 12% present-biased. IDFs and present bias were able to predict management preferences after controlling for demographic factors. However, the effect of discount factors is unique to divers, and the effect of present bias is concentrated among fishers on Curaçao. Differences in time preferences between fishers and divers should be considered when developing management strategies. Transfer payments from the dive industry could facilitate a transition to sustainable fishing practices. Establishing property rights alone may not be sufficient for ensuring sustainability if fishers are present-biased and greatly discount the future.

Suggested Citation

  • Johnson, Ayana Elizabeth & Saunders, Daniel Kaiser, 2014. "Time preferences and the management of coral reef fisheries," Ecological Economics, Elsevier, vol. 100(C), pages 130-139.
  • Handle: RePEc:eee:ecolec:v:100:y:2014:i:c:p:130-139
    DOI: 10.1016/j.ecolecon.2014.01.004
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    References listed on IDEAS

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    Cited by:

    1. Yayan Hernuryadin & Koji Kotani & Tatsuyoshi Saijo, 2020. "Time Preferences of Food Producers: Does “Cultivate and Grow” Matter?," Land Economics, University of Wisconsin Press, vol. 96(1), pages 132-148.
    2. Yayan Hernuryadin & Koji Kotani & Yoshio Kamijo, 2019. "Time Preferences between Individuals and Groups in the Transition from Hunter-Gatherer to Industrial Societies," Sustainability, MDPI, Open Access Journal, vol. 11(2), pages 1-21, January.
    3. Yayan Hernuryadin & Koji Kotani & Tatsuyoshi Saijo, 2018. "Individual time preferences of married couples in a fisheries society," Working Papers SDES-2018-5, Kochi University of Technology, School of Economics and Management, revised Aug 2018.
    4. Steven Rust & Sarah Jennings & Satoshi Yamazaki, 2016. "Excess Capacity and Capital Malleability in a Fishery with Myopic Expectations," Marine Resource Economics, University of Chicago Press, vol. 31(1), pages 63-81.
    5. Ngoc, Quach Thi Khanh, 2019. "Assessing the value of coral reefs in the face of climate change: The evidence from Nha Trang Bay, Vietnam," Ecosystem Services, Elsevier, vol. 35(C), pages 99-108.
    6. Alló, Maria & Loureiro, Maria L., 2018. "The impact of illegal harvesting on time preferences and willingness to participate in shellfish resource management," Resource and Energy Economics, Elsevier, vol. 54(C), pages 226-236.
    7. Oleson, Kirsten L.L. & Barnes, Michele & Brander, Luke M. & Oliver, Thomas A. & van Beek, Ingrid & Zafindrasilivonona, Bienvenue & van Beukering, Pieter, 2015. "Cultural bequest values for ecosystem service flows among indigenous fishers: A discrete choice experiment validated with mixed methods," Ecological Economics, Elsevier, vol. 114(C), pages 104-116.

    More about this item

    Keywords

    Time preferences; Discount factors; Discounting; Present bias; Fisheries management; Artisanal fishing; SCUBA diving; Coral reefs;

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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