Regional analysis of the US groundfish fishery : implications of the extended fishery jurisdiction for the Pacific Northwest fishery Public Deposited

http://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/hq37vq62w

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  • The Fishery Conservation and Management Act of 1976 took effect on March 1, 1977. By this Act the United States extended its management over fisheries to 200 nautical miles from shore. Extended fishery jurisdiction was expected to promote industry development and expand the contribution of the fishing industry to the economies of the coastal regions. Benefits to the Pacific Coast groundfish industry have, however, been less than were expected when the Act was passed. A spatial equilibrium model was formulated for the broader United States interregional/international groundfish market. Two steps were involved: First, a system of simultaneous econometric equations was estimated for each of the three product forms—fresh and frozen cod, ocean perch, and flounder fillets. Second, regionalized forms of these equations were collapsed into simple equations and combined with transportation and storage costs in a larger mathematical programming model. The resulting quadratic programming (QP) problem was then solved (for each product) for the competitive equilibrium quantities demanded and supplied, prices, and product movements. Two objectives were achieved: A model was formulated that accounts for most of the relevant factors influencing the United States groundfish market; and the multiregional nature of this market was established. The estimated price and income elasticities were similar to those suggested by earlier studies, and the estimated product movements were consistent with survey data in the Pacific Northwest. The various policies evaluated in this study (using the spatial equilibrium model) suggest mixed blessings to the Pacific Coast groundfish industry. There is no evidence to suggest that harvesting some average quantities uniformly throughout the year would improve industry revenues. In general, increasing Pacific Coast landings by 30 percent (or more) would depress wholesale revenues but substantially increase fleet revenues. On the other hand, both wholesale and fleet revenues would increase if at least 80 percent of the increase in landings could be sold in markets outside the region. This suggests that an industry policy aimed at expanding landings on the Pacific Coast will improve revenues for all industry participants only if access to outside markets also takes place.
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