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The Distributional Impacts of Recreational Fees: A Discrete Choice Model with Incomplete Data

  • Hwa Nyeon Kim
  • W. Douglass Shaw
  • Richard T. Woodward

We explore the distributional consequences of various fee schemes and other policy programs to reduce overfishing in the gulf of Mexico recreational fishery. The econometric model allows the marginal utility of income to vary across three income groups. We find that flat fees have a strong proportional effect on the participation of shore fishermen, where low-income anglers predominate, and a relatively small impact on the expensive charter fishery. We also find that the welfare consequences of declining catch rates would fall disproportionately on low-income anglers.

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Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 83 (2007)
Issue (Month): 4 ()
Pages: 561-574

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Handle: RePEc:uwp:landec:v:83:y:2007:i:4:p:561-574
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  1. Anders Karlstrom, 2003. "A Simple Method of Incorporating Income Effects into Logit and Nested-Logit Models: Theory and Application," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 248-253.
  2. W. Shaw & Michael Ozog, 1999. "Modeling Overnight Recreation Trip Choice: Application of a Repeated Nested Multinomial Logit Model," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 13(4), pages 397-414, June.
  3. R. M. Adams & O. Bergland & W. N. Musser & S. L. Johnson & L. M. Musser, 1989. "User Fees and Equity Issues in Public Hunting Expenditures: The Case of Ring-Necked Pheasant in Oregon," Land Economics, University of Wisconsin Press, vol. 65(4), pages 376-385.
  4. M. K. Haener & P. C. Boxall & W. L. Adamowicz & D. H. Kuhnke, 2004. "Aggregation Bias in Recreation Site Choice Models: Resolving the Resolution Problem," Land Economics, University of Wisconsin Press, vol. 80(4).
  5. Parsons, George R. & Jakus, Paul M. & Tomasi, Ted, 1999. "A Comparison of Welfare Estimates from Four Models for Linking Seasonal Recreational Trips to Multinomial Logit Models of Site Choice," Journal of Environmental Economics and Management, Elsevier, vol. 38(2), pages 143-157, September.
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