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Behavioral Response of Fishers to Hypoxia and the Distributional Impact on Harvest

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  • Mukherjee, Zinnia
  • Segerson, Kathleen

Abstract

Marine hypoxia, a seasonal phenomenon, adversely affects parts of numerous waterbodies around the world. The effects extend to marine organisms. The objective of this paper is twofold. First, we present a simple theoretical model that can be used to analyze both the aggregate and distributional effects of hypoxia on harvest within an industry. Second, we use temporally and spatially differentiated harvest data for Connecticut Long Island Sound lobster industry, and a set of environmental and economic variables to estimate the contemporaneous and lagged effects of hypoxia on harvest shares across the three adjacent fishing zones, only one of which faces moderate to severe hypoxic conditions each summer. The key insight from the theoretical model shows that, theoretically, hypoxia can have an ambiguous effect on the optimal harvest shares from the hypoxic and non-hypoxic fishing zones. Results from the empirical model indicate that an increase in hypoxic water condition reduces the share of harvest from the hypoxic water zone, compared to the other fishing zones.

Suggested Citation

  • Mukherjee, Zinnia & Segerson, Kathleen, 2015. "Behavioral Response of Fishers to Hypoxia and the Distributional Impact on Harvest," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205108, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea15:205108
    DOI: 10.22004/ag.econ.205108
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    File URL: https://ageconsearch.umn.edu/record/205108/files/Hypoxia%20-%20AAEA.pdf
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    References listed on IDEAS

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    3. Smith, Martin D. & Sanchirico, James N. & Wilen, James E., 2009. "The economics of spatial-dynamic processes: Applications to renewable resources," Journal of Environmental Economics and Management, Elsevier, vol. 57(1), pages 104-121, January.
    4. Smith, Martin D. & Wilen, James E., 2003. "Economic impacts of marine reserves: the importance of spatial behavior," Journal of Environmental Economics and Management, Elsevier, vol. 46(2), pages 183-206, September.
    5. Huang, Ling & Smith, Martin D., 2011. "Management of an annual fishery in the presence of ecological stress: The case of shrimp and hypoxia," Ecological Economics, Elsevier, vol. 70(4), pages 688-697, February.
    6. Ribaudo, Marc O. & Heimlich, Ralph & Peters, Mark, 2005. "Nitrogen sources and Gulf hypoxia: potential for environmental credit trading," Ecological Economics, Elsevier, vol. 52(2), pages 159-168, January.
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