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Market interactions between aquaculture and common-property fisheries: Recent evidence from the Bristol Bay sockeye salmon fishery in Alaska

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  • Valderrama, Diego
  • Anderson, James L.

Abstract

The remarkable growth of the global salmon aquaculture industry has generated important implications for Alaskan salmon fisheries as increased supplies of farmed product have led to declines in prices of both farmed and wild species. In the particular case of Bristol Bay sockeye salmon, falling prices and declining profit margins have led to reduced participation in the limited-entry fishery. This study conducts a formal examination of market interactions between the aquaculture and commercial fishery sectors by adapting the Homans and Wilen (1997) model of regulated open access to the context of restricted access fisheries. The econometric model reveals that limited entry regulations were initially successful in extracting rents from the Bristol Bay fishery; however, these rents were gradually dissipated as a result of overcapacity and the effect of falling ex-vessel prices. The emergence of aquaculture provides a strong rationale in favor of right-based approaches to fisheries management in Alaska.

Suggested Citation

  • Valderrama, Diego & Anderson, James L., 2010. "Market interactions between aquaculture and common-property fisheries: Recent evidence from the Bristol Bay sockeye salmon fishery in Alaska," Journal of Environmental Economics and Management, Elsevier, vol. 59(2), pages 115-128, March.
    • Handle: RePEc:eee:jeeman:v:59:y:2010:i:2:p:115-128
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    1. Homans, Frances R. & Wilen, James E., 2005. "Markets and rent dissipation in regulated open access fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 49(2), pages 381-404, March.
    2. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Palgrave Macmillan Books, in: Chennat Gopalakrishnan (ed.), Classic Papers in Natural Resource Economics, chapter 9, pages 178-203, Palgrave Macmillan.
    3. Frank Asche & Atle G. Guttormsen & Tom Sebulonsen & Elin H. Sissener, 2005. "Competition between farmed and wild salmon: the Japanese salmon market," Agricultural Economics, International Association of Agricultural Economists, vol. 33(3), pages 333-340, November.
    4. Mark L. Herrmann & Ron C. Mittelhammer & Biing-Hwan Lin, 1993. "Import Demands for Norwegian Farmed Atlantic Salmon and Wild Pacific Salmon in North America, Japan and the EC," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 41(1), pages 111-125, March.
    5. Homans, Frances R. & Wilen, James E., 1997. "A Model of Regulated Open Access Resource Use," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 1-21, January.
    6. H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62(2), pages 124-124.
    7. Munro, Gordon R. & Scott, Anthony D., 1985. "The economics of fisheries management," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 2, chapter 14, pages 623-676, Elsevier.
    8. Deacon, Robert T & Parker, Dominic P. & Costello, Christopher J, 2008. "Improving Efficiency by Assigning Harvest Rights to Fishery Cooperatives: Evidence From the Chignik Salmon Co-op," University of California at Santa Barbara, Economics Working Paper Series qt1cv9s0v9, Department of Economics, UC Santa Barbara.
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    2. Jinghua Xie & Dengjun Zhang, 2014. "Imperfect Competition and Structural Changes in the US Salmon Import Market," Marine Resource Economics, University of Chicago Press, vol. 29(4), pages 375-389.
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    7. Vårdal, Erling & Asche, Frank & Straume, Hans-Martin, 2017. "Perish or prosper: Trade patterns for highly perishable products," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261278, European Association of Agricultural Economists.
    8. Carolyn Fischer & Atle G. Guttormsen & Martin D. Smith, 2017. "Disease Risk and Market Structure in Salmon Aquaculture," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 1-29, April.
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    10. Esther Régnier & Basak Bayramoglu, 2016. "Competition between farmed and wild fish: the French sea bass and sea bream markets," Post-Print hal-01365962, HAL.
    11. Asche, Frank & Smith, Martin D., 2018. "Viewpoint: Induced Innovation in Fisheries and Aquaculture," Food Policy, Elsevier, vol. 76(C), pages 1-7.
    12. Seeger, Riley Martin, 2015. "Determinants of Bristol Bay Sockeye Demand and Ex-Vessel Price Implications Based on Key Market-Clearing Factors," SS-AAEA Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 2015, pages 1-25.
    13. Frank Asche & Hans‐Martin Straume & Erling Vårdal, 2021. "Perish or prosper: Trade patterns for highly perishable seafood products," Agribusiness, John Wiley & Sons, Ltd., vol. 37(4), pages 876-890, October.
    14. Subal Kumbhakar & Frank Asche & Ragnar Tveteras, 2013. "Estimation and decomposition of inefficiency when producers maximize return to the outlay: an application to Norwegian fishing trawlers," Journal of Productivity Analysis, Springer, vol. 40(3), pages 307-321, December.
    15. Cloé Garnache, 2015. "Fish, Farmers, and Floods: Coordinating Institutions to Optimize the Provision of Ecosystem Services," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(3), pages 367-399.
    16. Julia Bronnmann & Jens-Peter Loy & Karen J. Schroeder, 2016. "Characteristics of Demand Structure and Preferences for Wild and Farmed Seafood in Germany: An Application of QUAIDS Modeling with Correction for Sample Selection," Marine Resource Economics, University of Chicago Press, vol. 31(3), pages 281-300.
    17. Bronnmann, Julia & Asche, Frank, 2017. "Sustainable Seafood From Aquaculture and Wild Fisheries: Insights From a Discrete Choice Experiment in Germany," Ecological Economics, Elsevier, vol. 142(C), pages 113-119.
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    19. Asche, Frank & Smith, Martin D., 2010. "Trade and fisheries: Key issues for the World Trade Organization," WTO Staff Working Papers ERSD-2010-03, World Trade Organization (WTO), Economic Research and Statistics Division.

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