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How can Community-Based Management Improve an Outcome? The Effects of Revenue Sharing and Social Capital in a Fishery

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  • We empirically disentangle the efficiency mechanism of revenue sharing, in which a group of harvesters shares catch and/or revenue among members of a fishery cooperative, by incorporating the influence of social capital. In addition to each of revenue sharing and social capital influencing a fishery independently we hypothesize social capital potentially affecting the efficiency that revenue sharing brings through strengthening collective fishing efforts performed as a group. This paper provides the first rigorous analysis to measure the effect of revenue sharing and social capital in a co-managed fishery and to identify the mechanism through which revenue sharing and social capital affect the outcome of a fishery. We quantified social capital using controlled economic experiments with fisherman subjects. Using a panel dataset containing 10 fishery groups and random-effects model with wild cluster bootstrap for small sample inference, we find evidence of the long-run positive effect of trust in a community on an economic outcome. The results also show that the fisheries with fishers having similar information network size achieve better stock conditions over time. However, we find no robust evidence of the effect of revenue sharing directly improving an outcome in a fishery or the effect of both revenue sharing and social capital interacting to affect the fishery or its management outcomes.
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  • Tegawa, Mihoko, Hirotsugu Uchida, and Christopher M. Anderson. 2015. How can Community-Based Management Improve an Outcome? The Effects of Revenue Sharing and Social Capital in a Fishery. In: Proceedings of the Eighth Biennial Forum of the North American Association of Fisheries Economists, May 20-22, 2015, Ketchikan, Alaska: Economic Sustainability, Fishing Communities and Working Waterfronts. Compiled by Ann L. Shriver and Melissa Errend. North American Association of Fisheries Economists, Corvallis, Oregon, USA, 2015.
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  • Ketchikan, Alaska, USA
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  • Alaska Sea Grant, North Pacific Fishery Management Council, North Pacific Research Board, Northern Economics, Pollock Conservation Cooperative Research Center, Rasmuson Foundation, University of Alaska Fairbanks, School of Fisheries and Ocean Sciences, University of Alaska Southeast, Ketchikan
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