An Economic Discussion of An Economic Discussion of the Marine Sport Fisheries in the Marine Sport Fisheries in Central and Lower Cook InletCentral and Lower Cook Inlet

Authors: Hamel et alAuthors: Hamel et al

Presenter: John StevensonPresenter: John Stevenson

Context:Context:

• Catch limits or (Total Allowable Catch limits or (Total Allowable Catch) depends on the Catch) depends on the maximum maximum sustainable yieldsustainable yield, which is , which is determined by gov’t scientistsdetermined by gov’t scientists

• Of the TAC, managers allocate Of the TAC, managers allocate portion to commercial fisheries, and portion to commercial fisheries, and portion to recreational fisheries.portion to recreational fisheries.

Context:Context:

• Recreational fisheries receive Recreational fisheries receive significantly smaller allocation…significantly smaller allocation…highly controversial!highly controversial!

• All this happening against backdrop All this happening against backdrop in environmental change that can in environmental change that can drastically alter the TAC from year to drastically alter the TAC from year to year.year.

Questions Addressed:Questions Addressed:

• What is the economic benefit of the What is the economic benefit of the recreational sport fishery off the recreational sport fishery off the Kenai Peninsula?Kenai Peninsula?

Methods:Methods:

• Regional Impact ModelRegional Impact Model

– Identified components of Cook Inlet Identified components of Cook Inlet sport fishing analysis (fig. 3) sport fishing analysis (fig. 3)

Methods Methods cont…cont…

Assumed Willingness to pay (aka demand) curve

Methods Cont…Methods Cont…

• Assumed shift in demand curve caused by Assumed shift in demand curve caused by hypothesized reduction of catcheshypothesized reduction of catches

Data CollectionData Collection

• Investigators conducted survey asking:Investigators conducted survey asking:1)1) What individuals about expenses incurred What individuals about expenses incurred

from a recreational fishing tripfrom a recreational fishing trip

2)2) How decision to go on rec. fishing trip would How decision to go on rec. fishing trip would be impacted by variables such as decreased be impacted by variables such as decreased catch ratescatch rates

• Used Gov’t information to determine Used Gov’t information to determine angler daysangler days

ResultsResults

• Findings for Expenses:Findings for Expenses:– Non AK residents ~ $294 p/dayNon AK residents ~ $294 p/day– AK residents ~ $205 p/dayAK residents ~ $205 p/day– Locals ~ $167 p/dayLocals ~ $167 p/day

• Multiplied by angler days (minus Multiplied by angler days (minus locals), rec. fishing in region provides locals), rec. fishing in region provides ~$37.4m in net benefits~$37.4m in net benefits

Results cont…Results cont…

• Also found that reduced catches would Also found that reduced catches would reduce demand for recreational fishing reduce demand for recreational fishing trips.trips.

•

Results cont…Results cont…

• Based on these findings, authors Based on these findings, authors concluded:concluded:

– 10% decrease in catch rates would 10% decrease in catch rates would reduce net benefits by $5.7mreduce net benefits by $5.7m

– 10% increase in catch rates would 10% increase in catch rates would increase net benefits by $5.4mincrease net benefits by $5.4m

Policy ImplicationsPolicy Implications

• None necessarily drawn by authors…but None necessarily drawn by authors…but does raise questions about:does raise questions about:

– Possible changes in allocation of catches Possible changes in allocation of catches between recreational vs. commercial fishersbetween recreational vs. commercial fishers

– Would this provide incentives to increase Would this provide incentives to increase overall fishing pressure by raising Total overall fishing pressure by raising Total Allowable Catch?Allowable Catch?