Dhazn Gillig

The Value of the Gulf of Mexico Recreational Red Snapper Fishery

This study estimates the value of recreational red snapper fishing in the Gulf of Mexico. Additionally, the study shows how to decompose the estimated red snapper recreation demand function into changes: (i) due to recreationists who were not taking recreational red snapper fishing trips but were induced to take a trip in response to changes in catch rates and (ii) due to recreationists already taking trips and responding to changes in catch rates. The decomposition allows us to also decompose the estimated elasticities and consumer surplus. The results indicate that an improvement in expected fishing quality will increase consumer surplus and that most of the increase is contributed by recreationists who initially do not take recreational red snapper fishing trips, but later take a positive number of trips. This finding has important policy implications for managing the red snapper fishery in the Gulf of Mexico.

A Bioeconomic Assessment of Gulf of Mexico Red Snapper Management Policies

Abstract The stocks of red snapper Lutjanus campechanus in the Gulf of Mexico have experienced a serious decline owing to (1) the overharvesting of adults by the commercial and recreational fisheries and (2) the incidental harvesting and discarding of juveniles by the shrimp fishery. In an effort to rebuild these stocks, since 1984 a series of policies has been implemented by the National Marine Fisheries Service and the Gulf of Mexico Fishery Management Council. To date, however, the results of these policies have not been completely addressed. This study comprehensively assesses their biological and economic consequences using integrated biological and economic models of the red snapper and shrimp fisheries. The analysis indicates that a combined-policy approach (implementing a joint policy for the red snapper and shrimp fisheries) is preferable to an individual-policy approach.

Joint Estimation of Revealed and Stated Preference Data: An Application to Recreational Red Snapper Valuation

This study extends the joint estimation of revealed and stated preference data literature by accounting for truncation in the revealed preference data. The analytical model and estimation procedure are used to estimate the value of recreational red snapper fishing in the Gulf of Mexico. This recreational red snapper valuation is decomposed into its direct and indirect components. As expected, the value of recreational red snapper fishing using the joint revealed-stated preference model proposed in this analysis is bracketed on the upper limit by the value obtained using the contingent valuation method and on the lower limit by the travel cost method. The results also indicate that the joint model improves the precision of estimated recreational red snapper valuation.

Shrimp Ex-Vessel Prices Landed from the Gulf of Mexico

A 3SLS procedure is employed to analyze U.S. Gulf of Mexico shrimp ex-vessel prices by size class and import supplies using monthly time-series data for the period from 1981 to 1995. Results indicate that the U.S. Gulf of Mexico shrimp ex-vessel prices are inflexible. Own-price flexibilities range from -0.0663 to -0.1027. Primary substitutes for U.S. Gulf of Mexico shrimp are cross-size U.S. Gulf of Mexico shrimp and imported supplies from South America. Structural changes and seasonal variations are evident for U.S. Gulf of Mexico shrimp ex-vessel prices as well as import supplies.

The welfare impacts of unanticipated trip limitations in travel cost models.

Travel cost models are routinely used to assess the impact of policy changes on consumer’s surplus. In this paper we show that when the policy change leads to a partial closure of the resource, then the standard use of consumer’ s surplus per trip can be inappropriate depending upon the theoretical behavioral model underlying the analysis. We demonstrate the importance of theoretical model choice using an analysis of the Gulf of Mexico’s recreational red snapper fishery. (JEL Q26)

Integrating agricultural and forestry GHG mitigation response into general economy frameworks: Developing a family of response functions

An econometrically estimated family ofresponse functions is developed forcharacterizing potential responses togreenhouse gas mitigation policies by theagriculture and forestry sectors in theU.S. The response functions are estimatedbased on results of anagricultural/forestry sector model. Theyprovide estimates of sequestration andemission reductions in forestry andagriculture along with levels of sectoralproduction, prices, welfare, andenvironmental attributes given a carbonprice, levels of demand for agriculturalgoods, and the energy price. Sixalternative mitigation policiesrepresenting types of greenhouse gasoffsets allowed are considered. Resultsindicate that the largest quantity ofgreenhouse gas offset consistently appearswith the mitigation policy that pays forall opportunities. Restricting carbonpayments (emission tax or sequestrationsubsidy) only to aff/deforestation or onlyto agricultural sequestration substantiallyreduces potential mitigation. Highercarbon prices lead to more sequestration,less emissions, reduced consumer and totalwelfare, improved environmental indicatorsand increased producer welfare.

Analysis of Agricultural Greenhouse Gas Mitigation Options Within a Multi-Sector Economic Framework

Publisher Summary National-scale analysis of greenhouse gas mitigation options is generally carried out using topdown economic models with moderate energy detail but very limited detail in most other sectors, including agriculture and forestry. However, a complete analysis of greenhouse gas mitigation options including sequestration requires an improved representation of agriculture and forestry within the models used. A full analysis of greenhouse gas mitigation options should include activities that reduce emissions of carbon dioxide (CO2) and other greenhouse gases, and activities that sequester carbon. Analysis of greenhouse gas mitigation policies typically starts with an economic model that simulates national or global energy consumption in response to a carbon price, then appends marginal abatement cost curves for non-CO2 greenhouse gases, and perhaps includes simple assumptions on carbon sinks. No single model can adequately simulate all the activities and processes that might contribute to reductions in net greenhouse gas emissions. However, detailed process models for various activities, including agriculture and forestry, can be used to inform national and global economic models. In particular, greenhouse gas mitigation options within the agricultural and forestry sectors include changes in afforestation of agricultural lands, altered crop and livestock management practices, harvesting of biomass crops for fuel, and the sequestration of carbon in agricultural soils. Analysis of such options is usually carried out in a detailed sectoral model.

U.S. agriculture and forestry greenhouse gas emission mitigation over time

The Intergovernmental Panel on Climate Change (IPCC) asserts the Earth’s temperature rose by approximately 0.6C (1F) during the 20th century (Houghton et al., 2001) and projects that temperature will continue to rise projecting an increase of 1.4 to 5.8C by 2100 (McCarthy et al., 2001). The IPCC also asserts that anthropogenic greenhouse gas emissions have been the dominant causal factor (Houghton et al., 2001). In response to these and other findings society is actively considering options to reduce greenhouse gas emissions. In 1992, 165 nations negotiated and signed the United Nations Framework Convention on Climate Change (UNFCCC), which sets a long-term goal ‘to stabilize greenhouse gas (GHG) concentrations in the atmosphere at a level that would prevent dangerous human interference with the climate’. Subsequently, a number of programs or policy directions have been formed that are directed toward achieving emissions reductions including the Kyoto Protocol, and the U.S. Presidential level Clear Skies and Global Climate Change Initiatives (Bush, 2002). Emission reductions can be expensive. In the United States, the majority of emissions come from fossil fuel energy related sources use with about 40% of total GHG emissions coming from each of electricity generation and petroleum usage. A large emissions reduction would require actions such as: