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Evaluating the impact of the Deepwater Horizon Oil Spill on Red Snapper IFQ Trading

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Abstract
  • During the first three years (2007-2009) of the Gulf of Mexico red snapper IFQ program most quota lease trades were local, involving fishers that lived in the same communities. In 2010, the red snapper quota lease market changed as more IFQ participants began trading quota with fishers from different regions of the Gulf. One possible cause of the change in trading was the Deepwater Horizon Oil Spill in April 2010, which led to widespread fishing closures in the northern Gulf of Mexico that lasted for much of the remainder of the year. Fishing closures led to some affected fishers looking to lease out their 2010 quota before it became worthless (non-harvested quota does not carry forward to future years); however, unlike in previous years where they would trade the quota locally they were forced to lease their quota to different areas of the Gulf since their neighbors were subject to the same fishery closures. This research compares IFQ trading data in the years prior to the spill (2007-2009) to 2010 trading data to determine how the oil spill impacted quota trading. Specifically, this analysis compares 2010 quota trading before and after the spill to the same periods in previous years to see if the spill changed the nature of quota trading. In addition, the analysis examines if new trading relationships created in the wake of the oil spill continued into future years.
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  • Ropicki, Andrew and Sherry Larkin. 2015. Evaluating the impact of the Deepwater Horizon Oil Spill on Red Snapper IFQ Trading. 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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  • 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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