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Accounting for price responses in economic evaluation of climate impacts for a fishery

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  • Seung, Chang K.
  • Kim, Do-Hoon
  • Yi, Ju-Hyun
  • Song, Se-Hyun

Abstract

The present study evaluates the economic impacts of fluctuations in anchovy (Engraulis spp.) catch in Gyeong-Nam (GN) province, South Korea, arising due to warming seawater, accounting for the effects of the responses of the anchovy price. It combines an inter-regional input-output (IRIO) model of two regions (i.e., GN province and all other provinces combined) with a simultaneous equation system (SES) of anchovy supply and demand functions estimated to make projections of the price and quantity of anchovies based on two greenhouse gas (GHG) concentration scenarios (i.e., representative concentration pathway (RCP) 4.5 and 8.5). Results indicate that estimates of the economic impacts for the two regions will be biased if we consider only the quantity (harvest) change when computing the economic impacts without accounting for the effects of the price responses. None of the previous IO-based economic impact analyses of fisheries account for the price effects induced by a quantity shock. This study fills this critical void by considering such effects.

Suggested Citation

  • Seung, Chang K. & Kim, Do-Hoon & Yi, Ju-Hyun & Song, Se-Hyun, 2021. "Accounting for price responses in economic evaluation of climate impacts for a fishery," Ecological Economics, Elsevier, vol. 181(C).
    • Handle: RePEc:eee:ecolec:v:181:y:2021:i:c:s0921800920322047
    DOI: 10.1016/j.ecolecon.2020.106913
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    References listed on IDEAS

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    2. Negar Akbari & Pierre Failler & Haoran Pan & Benjamin Drakeford & Andy Forse, 2023. "The Impact of Fisheries on the Economy: A Systematic Review on the Application of General Equilibrium and Input–Output Methods," Sustainability, MDPI, vol. 15(7), pages 1-17, March.

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