Evaluation of the economic costs and benefits of methods for reducing nutrient loads to the Gulf of Mexico: Topic 6 Report for the Integrated Assessment on Hypoxia in the Gulf of Mexico.

In this report we analyze the Topic 5 report’s recommendations for reducing nitrogen losses to the Gulf of Mexico (Mitsch et al. 1999). We indicate the relative costs and cost-effectiveness of different control measures, and potential benefits within the Mississippi River Basin. For major nonpoint sources, such as agriculture, we examine both national and basin costs and benefits. Based on the Topic 2 economic analysis (Diaz and Solow 1999), the direct measurable dollar benefits to Gulf fisheries of reducing nitrogen loads from the Mississippi River Basin are very limited at best. Although restoring the ecological communities in the Gulf may be significant over the long term, we do not currently have information available to estimate the benefits of such measures to restore the Gulf’s long-term health. For these reasons, we assume that measures to reduce nitrogen losses to the Gulf will ultimately prove beneficial, and we concentrate on analyzing the cost-effectiveness of alternative reduction strategies. We recognize that important public decisions are seldom made on the basis of strict benefit–cost analysis, especially when complete benefits cannot be estimated. We look at different approaches and different levels of these approaches to identify those that are cost-effective and those that have limited undesirable secondary effects, such as reduced exports, which may result in lost market share. We concentrate on the measures highlighted in the Topic 5 report, and also are guided by the source identification information in the Topic 3 report (Goolsby et al. 1999). Nonpoint sources that are responsible for the bulk of the nitrogen receive most of our attention. We consider restrictions on nitrogen fertilizer levels, and restoration of wetlands and riparian buffers for denitrification. We also examine giving more emphasis to nitrogen control in regions contributing a greater share of the nitrogen load.

Coping with the Lionfish Invasion: can targeted removals yield beneficial effects?

Invasive species generate significant environmental and economic costs, with maintenance management constituting a major expenditure. Such costs are generated by invasive Indo-Pacific lionfish (Pterois spp.) that further threaten already stressed coral reefs in the western Atlantic Ocean and Caribbean Sea. This brief review documents rapid range expansion and potential impacts of lionfish. In addition, preliminary experimental data from targeted removals contribute to debates about maintenance management. Removals at sites off Little Cayman Island shifted the size frequency distribution of remaining lionfish toward smaller individuals whose stomachs contained less prey and fewer fish. Fewer lionfish and decreased predation on threatened grouper, herbivores and other economically and ecologically important fishes represent key steps toward protecting reefs. However, complete evaluation of success requires long-term data detailing immigration and recruitment by lionfish, compensatory growth and reproduction of lionfish, reduced direct effects on prey assemblages, and reduced indirect effects mediated by competition for food. Preventing introductions is the best way to avoid impacts from invasive species and early detection linked to rapid response ranks second. Nevertheless, results from this case study suggest that targeted removals represent a viable option for shifting direct impacts of invasive lionfish away from highly vulnerable components of ecosystems.

Scientific assessment of hypoxia in U.S. coastal waters

The occurrence of hypoxia, or low dissolved oxygen, is increasing in coastal waters worldwide and represents a significant threat to the health and economy of our Nation’s coasts and Great Lakes. This trend is exemplified most dramatically off the coast of Louisiana and Texas, where the second largest eutrophication-related hypoxic zone in the world is associated with the nutrient pollutant load discharged by the Mississippi and Atchafalaya Rivers. Aquatic organisms require adequate dissolved oxygen to survive. The term “dead zone” is often used in reference to the absence of life (other than bacteria) from habitats that are devoid of oxygen. The inability to escape low oxygen areas makes immobile species, such as oysters and mussels, particularly vulnerable to hypoxia. These organisms can become stressed and may die due to hypoxia, resulting in significant impacts on marine food webs and the economy. Mobile organisms can flee the affected area when dissolved oxygen becomes too low. Nevertheless, fish kills can result from hypoxia, especially when the concentration of dissolved oxygen drops rapidly. New research is clarifying when hypoxia will cause fish kills as opposed to triggering avoidance behavior by fish. Further, new studies are better illustrating how habitat loss associated with hypoxia avoidance can impose ecological and economic costs, such as reduced growth in commercially harvested species and loss of biodiversity, habitat, and biomass. Transient or “diel-cycling” hypoxia, where conditions cycle from supersaturation of oxygen late in the afternoon to hypoxia or anoxia near dawn, most often occurs in shallow, eutrophic systems (e.g., nursery ground habitats) and may have pervasive impacts on living resources because of both its location and frequency of occurrence.

Scientific assessment of freshwater harmful algal blooms

In 2004, Congress reauthorized the Harmful Algal Bloom and Hypoxia Research and Control Act of 1998 with the Harmful Algal Bloom and Hypoxia Amendments Act (HABHRCA 2004). The 2004 legislation required the generation of five reports, including this "Scientific Assessment of Freshwater Harmful Algal Blooms." HABHRCA 2004 stipulates that this report 1) examine the causes, consequences, and economic costs of freshwater HABs, 2) establish priorities and guidelines for a research program on freshwater HABs, and 3) make recommendations to improve coordination among Federal agencies with respect to research on HABs in freshwater environments. This report is divided into five chapters: Chapter 1 provides the legislative background and process for developing the report, Chapter 2 describes the problem of freshwater and inland HABs in the United States, Chapter 3 outlines the current Federal efforts in freshwater and inland HAB research and response, Chapter 4 discusses the future research priorities, and Chapter 5 delineates opportunities for coordination to advance research efforts. The document is based, in large part, on the proceedings (Hudnell 2008) of the International Symposium on Cyanobacterial Harmful Algal Blooms, a meeting convened by EPA and sponsored by a variety of Federal agencies, to describe current scientific knowledge and identify priorities for future research on CyanoHABs. This report offers a plan for coordinating the important research that is currently ongoing in the United States and for guiding future research directions for Federal programs as well as for state, local, private, and academic institutions in order to maximize advancements. To this end, the Interagency Working Group on Harmful Algal Blooms, Hypoxia, and Human Health (IWG-4H) identifies seven priorities, all of equal weight, for freshwater HAB research and response. These priorities represent research areas where there is the greatest potential for progress in freshwater HAB research. This report does not attempt to assess the relative importance of freshwater HAB research compared to other research areas or other priorities for Federal or state investment.

Coupling ecology and economy: modeling optimal release scenarios for summer flounder (Paralichthys dentatus) stock enhancement

Increasing interest in the use of stock enhancement as a management tool necessitates a better understanding of the relative costs and benefits of alternative release strategies. We present a relatively simple model coupling ecology and economic costs to make inferences about optimal release scenarios for summer flounder (Paralichthys dentatus), a subject of stock enhancement interest in North Carolina. The model, parameterized from mark-recapture experiments, predicts optimal release scenarios from both survival and economic standpoints for varyious dates-of-release, sizes-at-release, and numbers of fish released. Although most stock enhancement efforts involve the release of relatively small fish, the model suggests that optimal results (maximum survival and minimum costs) will be obtained when relatively large fish (75–80 mm total length) are released early in the nursery season (April). We investigated the sensitivity of model predictions to violations of the assumption of density-independent mortality by including density-mortality relationships based on weak and strong type-2 and type-3 predator functional responses (resulting in depensatory mortality at elevated densities). Depending on postrelease density, density-mortality relationships included in the model considerably affect predicted postrelease survival and economic costs associated with enhancement efforts, but do not alter the release scenario (i.e. combination of release variables) that produces optimal results. Predicted (from model output) declines in flounder over time most closely match declines observed in replicate field sites when mortality in the model is density-independent or governed by a weak type-3 functional response. The model provides an example of a relatively easy-to-develop predictive tool with which to make inferences about the ecological and economic potential of stock enhancement of summer flounder and provides a template for model creation for additional species that are subjects of stock enhancement interest, but for which limited empirical data exist.

The Annual Economic Survey of Federal Gulf Shrimp Permit Holders: Report on the Design, Implementation, and Descriptive Results for 2006

This technical memorandum documents the design, implementation, data preparation, and descriptive results for the 2006 Annual Economic Survey of Federal Gulf Shrimp Permit Holders. The data collection was designed by the NOAA Fisheries Southeast Fisheries Science Center Social Science Research Group to track the financial and economic status and performance by vessels holding a federal moratorium permit for harvesting shrimp in the Gulf of Mexico. A two page, self-administered mail survey collected total annual costs broken out into seven categories and auxiliary economic data. In May 2007, 580 vessels were randomly selected, stratified by state, from a preliminary population of 1,709 vessels with federal permits to shrimp in offshore waters of the Gulf of Mexico. The survey was implemented during the rest of 2007. After many reminder and verification phone calls, 509 surveys were deemed complete, for an ineligibility-adjusted response rate of 90.7%. The linking of each individual vessel’s cost data to its revenue data from a different data collection was imperfect, and hence the final number of observations used in the analyses is 484. Based on various measures and tests of validity throughout the technical memorandum, the quality of the data is high. The results are presented in a standardized table format, linking vessel characteristics and operations to simple balance sheet, cash flow, and income statements. In the text, results are discussed for the total fleet, the Gulf shrimp fleet, the active Gulf shrimp fleet, and the inactive Gulf shrimp fleet. Additional results for shrimp vessels grouped by state, by vessel characteristics, by landings volume, and by ownership structure are available in the appendices. The general conclusion of this report is that the financial and economic situation is bleak for the average vessels in most of the categories that were evaluated. With few exceptions, cash flow for the average vessel is positive while the net revenue from operations and the “profit” are negative. With negative net revenue from operations, the economic return for average shrimp vessels is less than zero. Only with the help of government payments does the average owner just about break even. In the short-term, this will discourage any new investments in the industry. The financial situation in 2006, especially if it endures over multiple years, also is economically unsustainable for the average established business. Vessels in the active and inactive Gulf shrimp fleet are, on average, 69 feet long, weigh 105 gross tons, are powered by 505 hp motor(s), and are 23 years old. Three-quarters of the vessels have steel hulls and 59% use a freezer for refrigeration. The average market value of these vessels was $175,149 in 2006, about a hundred-thousand dollars less than the average original purchase price. The outstanding loans averaged $91,955, leading to an average owner equity of $83,194. Based on the sample, 85% of the federally permitted Gulf shrimp fleet was actively shrimping in 2006. Of these 386 active Gulf shrimp vessels, just under half (46%) were owner-operated. On average, these vessels burned 52,931 gallons of fuel, landed 101,268 pounds of shrimp, and received $2.47 per pound of shrimp. Non-shrimp landings added less than 1% to cash flow, indicating that the federal Gulf shrimp fishery is very specialized. The average total cash outflow was $243,415 of which $108,775 was due to fuel expenses alone. The expenses for hired crew and captains were on average $54,866 which indicates the importance of the industry as a source of wage income. The resulting average net cash flow is $16,225 but has a large standard deviation. For the population of active Gulf shrimp vessels we can state with 95% certainty that the average net cash flow was between $9,500 and $23,000 in 2006. The median net cash flow was $11,843. Based on the income statement for active Gulf shrimp vessels, the average fixed costs accounted for just under a quarter of operating expenses (23.1%), labor costs for just over a quarter (25.3%), and the non-labor variable costs for just over half (51.6%). The fuel costs alone accounted for 42.9% of total operating expenses in 2006. It should be noted that the labor cost category in the income statement includes both the actual cash payments to hired labor and an estimate of the opportunity cost of owner-operators’ time spent as captain. The average labor contribution (as captain) of an owner-operator is estimated at about $19,800. The average net revenue from operations is negative $7,429, and is statistically different and less than zero in spite of a large standard deviation. The economic return to Gulf shrimping is negative 4%. Including non-operating activities, foremost an average government payment of $13,662, leads to an average loss before taxes of $907 for the vessel owners. The confidence interval of this value straddles zero, so we cannot reject, with 95% certainty, that the population average is zero. The average inactive Gulf shrimp vessel is generally of a smaller scale than the average active vessel. Inactive vessels are physically smaller, are valued much lower, and are less dependent on loans. Fixed costs account for nearly three quarters of the total operating expenses of $11,926, and only 6% of these vessels have hull insurance. With an average net cash flow of negative $7,537, the inactive Gulf shrimp fleet has a major liquidity problem. On average, net revenue from operations is negative $11,396, which amounts to a negative 15% economic return, and owners lose $9,381 on their vessels before taxes. To sustain such losses and especially to survive the negative cash flow, many of the owners must be subsidizing their shrimp vessels with the help of other income or wealth sources or are drawing down their equity. Active Gulf shrimp vessels in all states but Texas exhibited negative returns. The Alabama and Mississippi fleets have the highest assets (vessel values), on average, yet they generate zero cash flow and negative $32,224 net revenue from operations. Due to their high (loan) leverage ratio the negative 11% economic return is amplified into a negative 21% return on equity. In contrast, for Texas vessels, which actually have the highest leverage ratio among the states, a 1% economic return is amplified into a 13% return on equity. From a financial perspective, the average Florida and Louisiana vessels conform roughly to the overall average of the active Gulf shrimp fleet. It should be noted that these results are averages and hence hide the variation that clearly exists within all fleets and all categories. Although the financial situation for the average vessel is bleak, some vessels are profitable. (PDF contains 101 pages)

U.S. Caribbean fish trap fishery costs and earnings study

Executive Summary: This study describes the socio-economic characteristics of the U.S. Caribbean trap fishery that encompasses the Commonwealth of Puerto Rico and Territory of the U.S. Virgin Islands. In-person interviews were administered to one hundred randomly selected trap fishermen, constituting nearly 25% of the estimated population. The sample was stratified by geographic area and trap tier. The number of traps owned or fished to qualify for a given tier varied by island. In Puerto Rico, tier I consisted of fishermen who had between 1-40 fish traps, tier II was made up of fishermen who possessed between 41 and 100 fish traps, and tier III consisted of fishermen who held in excess of 100 fish traps. In St. Thomas and St. John, tier I was composed of fishermen who held between 1 and 50 fish traps, tier II consisted of fishermen who had between 51-150 fish traps and tier III was made up of fishermen who had in excess of 150 fish traps. Lastly, in St. Croix, tier I was made up of fishermen who had less than 20 fish traps and tier II consisted of fishermen who had 20 or more fish traps. The survey elicited information on household demographics, annual catch and revenue, trap usage, capital investment on vessels and equipment, fixed and variable costs, behavioral response to a hypothetical trap reduction program and the spatial distribution of traps. The study found that 79% of the sampled population was 40 years or older. The typical Crucian trap fisherman was older than their Puerto Rican and St. Thomian and St. Johnian counterparts. Crucian fishermen’s average age was 57 years whereas Puerto Rican fishermen’s average age was 51 years, and St. Thomian and St. Johnian fishermen’s average age was 48 years. As a group, St. Thomian and St. Johnian fishermen had 25 years of fishing experience, and Puerto Rican and Crucian fishermen had 30, and 29 years, respectively. Overall, 90% of the households had at least one dependent. The average number of dependents across islands was even, ranging between 2.8 in the district of St. Thomas and St. John and 3.4 in the district of St. Croix. The percentage utilization of catch for personal or family use was relatively low. Regionally, percentage use of catch for personal or family uses ranged from 2.5% in St. Croix to 3.8% in the St. Thomas and St. John. About 47% of the respondents had a high school degree. The majority of the respondents were highly dependent on commercial fishing for their household income. In St. Croix, commercial fishing made up 83% of the fishermen’s total household income, whereas in St. Thomas and St. John and Puerto Rico it contributed 74% and 68%, respectively. The contribution of fish traps to commercial fishing income ranged from 51% in the lowest trap tier in St. Thomas and St. John to 99% in the highest trap tier in St. Croix. On an island basis, the contribution of fish traps to fishing income was 75% in St. Croix, 61% in St. Thomas and St. John, and 59% in Puerto Rico. The value of fully rigged vessels ranged from $400 to $250,000. Over half of the fleet was worth $10,000 or less. The St. Thomas and St. John fleet reported the highest mean value, averaging $58,518. The Crucian and Puerto Rican fleets were considerably less valuable, averaging $19,831 and $8,652, respectively. The length of the vessels ranged from 14 to 40 feet. Fifty-nine percent of the sampled vessels were at least 23 feet in length. The average length of the St. Thomas and St. John fleet was 28 feet, whereas the fleets based in St. Croix and Puerto Rico averaged 21 feet. The engine’s propulsion ranged from 8 to 400 horsepower (hp). The mean engine power was 208 hp in St. Thomas and St. John, 108 hp in St. Croix, and 77 hp in Puerto Rico. Mechanical trap haulers and depth recorders were the most commonly used on-board equipment. About 55% of the sampled population reported owning mechanical trap haulers. In St. Thomas and St. John, 100% of the respondents had trap haulers compared to 52% in Puerto Rico and 20% in St. Croix. Forty-seven percent of the fishermen surveyed stated having depth recorders. Depth recorders were most common in the St. Thomas and St. John fleet (80%) and least common in the Puerto Rican fleet (37%). The limited presence of emergency position indication radio beacons (EPIRBS) and radar was the norm among the fish trap fleet. Only 8% of the respondents had EPIRBS and only 1% had radar. Interviewees stated that they fished between 1 and 350 fish traps. Puerto Rican respondents fished on average 39 fish traps, in contrast to St. Thomian and St. Johnian and Crucian respondents, who fished 94 and 27 fish traps, respectively. On average, Puerto Rican respondents fished 11 lobster traps, and St. Thomian and St. Johnian respondents fished 46 lobster traps. None of the Crucian respondents fished lobster traps. The number of fish traps built or purchased ranged between 0 and 175, and the number of lobster traps built or bought ranged between 0 and 200. Puerto Rican fishermen on average built or purchased 30 fish traps and 14 lobster traps, and St. Thomian and St. Johnian fishermen built or bought 30 fish traps and 11 lobster traps. Crucian fishermen built or bought 25 fish traps and no lobster traps. As a group, fish trap average life ranged between 1.3 and 5 years, and lobster traps lasted slightly longer, between 1.5 and 6 years. The study found that the chevron or arrowhead style was the most common trap design. Puerto Rican fishermen owned an average of 20 arrowhead traps. St. Thomian and St. Johnian and Crucian fishermen owned an average of 44 and 15 arrowhead fish traps, respectively. The second most popular trap design was the square trap style. Puerto Rican fishermen had an average of 9 square traps, whereas St. Thomian and St. Johnian fishermen had 33 traps and Crucian fishermen had 2 traps. Antillean Z (or S) -traps, rectangular and star traps were also used. Although Z (or S) -traps are considered the most productive trap design, fishermen prefer the smaller-sized arrowhead and square traps because they are easier and less expensive to build, and larger numbers of them can be safely deployed. The cost of a fish trap, complete with rope and buoys, varied significantly due to the wide range of construction materials utilized. On average, arrowhead traps commanded $94 in Puerto Rico, $251 in St. Thomas and St. John, and $119 in St. Croix. The number of trips per week ranged between 1 and 6. However, 72% of the respondents mentioned that they took two trips per week. On average, Puerto Rican fishermen took 2.1 trips per week, St. Thomian and St. Johnian fishermen took 1.4 trips per week, and Crucian fishermen took 2.5 trips per week. Most fishing trips started at dawn and finished early in the afternoon. Over 82% of the trips lasted 8 hours or less. On average, Puerto Rican fishermen hauled 27 fish traps per trip whereas St. Thomian and St. Johnian fishermen and Crucian fishermen hauled 68 and 26 fish traps per trip, respectively. The number of traps per string and soak time varied considerably across islands. In St. Croix, 84% of the respondents had a single trap per line, whereas in St. Thomas and St. John only 10% of the respondents had a single trap per line. Approximately, 43% of Puerto Rican fishermen used a single trap line. St. Thomian and St. Johnian fishermen soaked their traps for 6.9 days while Puerto Rican and Crucian fishermen soaked their traps for 5.7 and 3.6 days, respectively. The heterogeneity of the industry was also evidenced by the various economic surpluses generated. The survey illustrated that higher gross revenues did not necessarily translate into higher net revenues. Our analysis also showed that, on average, vessels in the trap fishery were able to cover their cash outlays, resulting in positive vessel income (i.e., financial profits). In Puerto Rico, annual financial profits ranged from $4,760 in the lowest trap tier to $32,467 in the highest tier, whereas in St. Thomas and St. John annual financial profits ranged from $3,744 in the lowest tier to $13,652 in the highest tier. In St. Croix, annual financial profits ranged between $9,229 and $15,781. The survey also showed that economic profits varied significantly across tiers. Economic profits measure residual income after deducting the remuneration required to keep the various factors of production in their existing employment. In Puerto Rico, annual economic profits ranged from ($9,339) in the lowest trap tier to $ 8,711 in the highest trap tier. In St. Thomas and St. John, annual economic profits ranged from ($7,920) in the highest tier to ($18,486) in the second highest tier. In St. Croix, annual economic profits ranged between ($7,453) to $10,674. The presence of positive financial profits and negative economic profits suggests that higher economic returns could be earned from a societal perspective by redirecting some of these scarce capital and human resources elsewhere in the economy. Furthermore, the presence of negative economic earnings is evidence that the fishery is overcapitalized and that steps need to be taken to ensure the long-run economic viability of the industry. The presence of positive financial returns provides managers with a window of opportunity to adopt policies that will strengthen the biological and economic performance of the fishery while minimizing any adverse impacts on local fishing communities. Finally, the document concludes by detailing how the costs and earnings information could be used to develop economic models that evaluate management proposals. (PDF contains 147 pages)

Description of economic data collected with a random sample of commercial reef fish boats in the Florida Keys

This study summarizes the results of a survey designed to provide economic information about the financial status of commercial reef fish boats with homeports in the Florida Keys. A survey questionnaire was administered in the summer and fall of 1994 by interviewers in face-to-face meetings with owners or operators of randomly selected boats. Fishermen were asked for background information about themselves and their boats, their capital investments in boats and equipment, and about their average catches, revenues, and costs per trip for their two most important kinds of fishing trips during 1993 for species in the reef fish fishery. Respondents were characterized with regard to their dependence on the reef fish fishery as a source of household income. Boats were described in terms of their physical and financial characteristics. Different kinds of fishing trips were identified by the species that generated the greatest revenue. Trips were grouped into the following categories: yellowtail snapper (Ocyurus chrysurus); mutton snapper (Lutjanus analis), black grouper (Mycteroperca bonaci), or red grouper (Epinephelus morio); gray snapper (Lutjanus griseus); deeper water groupers and tilefishes; greater amberjack (Seriola dumerili); spiny lobster (Panulirus argus); king mackerel (Scomberomorus cavalla); and dolphin (Coryphaena hippurus). Average catches, revenues, routine trip costs, and net operating revenues per boat per trip and per boat per year were estimated for each category of fishing trips. In addition to its descriptive value, data collected during this study will aid in future examinations of the economic effects of various regulations on commercial reef fish fishermen.(PDF file contains 48 pages.)

Techno-economic considerations of shark driftnet fishery, off Lagos coast, Nigeria

Experimental fishing operations with driftnets were conducted in Lagos coastal waters with a view to finding out appropriate gear for effective exploitation of sharks and other pelagic fish species that are not normally caught in trawls. The design and fabrication of the driftnets as well as the fishing trials were undertaken between May, 1977 and April, 1978. Six baited driftnet sets of equal panels with three stretched mesh sizes of 190.5mm; 228.6mm and 241.3mm were used. Analysis were carried out on species composition of catches, weight and number of species/group of fish, catch efficiency of the driftnets as well as on operating costs and financial returns

Preliminary economic evaluation of 10 metre (LOA) shallow draft vessel in daily fishery, off Imo River, Cross River State

Scientists from the Institute with the collaboration of Food and Agricultural Organisation (FAO), Rome designed and built a 10-m (LOA) shallow draft vessel. The prototype vessel was tried at Uta-Ewa, Ikot Abasi, Cross River State. The paper deals with the preliminary economic analysis of the performance of prototype vessel. An analysis of the annual return has shown that 43.66% of the annual gross income was paid to labour; 15.91% was spent on repairs and replacements; 7.76% on fuel and lubricants; 24.38% on maintenance costs and the return of investment, 6.2%. This low return of investment is attributable to high percentage of labour costs as well as low fishing intensity

Coastal erosion as a natural resource management problem: An economic perspective

Unremitting waves and occasional storms bring dynamic forces to bear on the coast. Sediment flux results in various patterns of erosion and accretion, with an overwhelming majority (80 to 90 percent) of coastline in the eastern U.S. exhibiting net erosion in recent decades. Climate change threatens to increase the intensity of storms and raise sea level 18 to 59 centimeters over the next century. Following a lengthy tradition of economic models for natural resource management, this paper provides a dynamic optimization model for managing coastal erosion and explores the types of data necessary to employ the model for normative policy analysis. The model conceptualizes benefits of beach and dune sediments as service flows accruing to nearby residential property owners, local businesses, recreational beach users, and perhaps others. Benefits can also include improvements in habitat for beach- and dune-dependent plant and animal species. The costs of maintaining beach sediment in the presence of coastal erosion include expenditures on dredging, pumping, and placing sand on the beach to maintain width and height. Other costs can include negative impacts on the nearshore environment. Employing these constructs, an optimal control model is specified that provides a framework for identifying the conditions under which beach replenishment enhances economic welfare and an optimal schedule for replenishment can be derived under a constant sea level and erosion rate (short term) as well as an increasing sea level and erosion rate (long term). Under some simplifying assumptions, the conceptual framework can examine the time horizon of management responses under sea level rise, identifying the timing of shift to passive management (shoreline retreat) and exploring factors that influence this potential shift. (PDF contains 4 pages)

A Low-level Geographic Information System for coastal zone management, with application to Brunei Darussalam. Part II:: Economic analysis of trawling in Brunei Darussalam

Economic analysis of the trawl fishery of Brunei Darussalam was conducted using cost and returns analysis and based on an economic survey of trawlers and B:RUN, a low-level geographic information system. Profitability indicators were generated for the trawl fleet under various economic and operational scenarios. The results show that financial profits are earned by trawlers which operate off Muara, particularly those with high vessel capacity, and that these profits could be further enhanced. On the other hand, a similar fleet operating off Tutong would generate profits due mainly to high fish biomass. Trawling operations offshore are deemed financially unfeasible. Incorporating realistic opportunity costs and externalities for existing trawl operations off Muara results in economic losses.

Estimating the Economic Impact of the Wild Shrimp, Penaeus sp., Fishery: A Study of Terrebonne Parish, Louisiana

Two approaches are used to estimate the economic impact of domestic wild shrimp, Penaeus sp., fishing in Terrebonne Parish, Louisiana. A 2002 survey of commercial shrimp fishermen in the Parish yields information on sales and operating costs, and results are used to estimate a 1-yr sales effect in the Parish of $36.7 to $128.1 million due to shrimp fishing. In addition, 2001 shrimp ticket sales data ($49.9 million) are input into a REMI (Regional Economic Models, Inc.) model built for the 4-parish bayou region of Louisiana. The REMI model forecasts a year 1 reduction in gross regional product (GRP) of $45.9 million in the 4-parish area if the shrimp fishing industry were to disappear in Terrebonne Parish, and an 8-yr cumulative negative impact on GRP in the bayou region of $191.3 million. Study limitations and suggestions for future research are included.

Reported Trip Costs, Gross Revenues, and Net Returns for U.S. Atlantic Pelagic Longline Vessels

Logbook set and trip summary data (containing catch and cost information, respectively) collected by NOAA’s National Marine Fisheries Service (NMFS) were analyzed for U.S. pelagic longline vessels that participated in Atlantic fisheries in 1996. These data were augmented with vessel information from the U.S. Coast Guard. Mean fish weights and ex-vessel prices from NMFS observers and licensed seafood dealers, respectively, were used to estimate gross revenues. Comparisons revealed that net returns varied substantially by vessel size and fishing behavior (i.e. sets per trip, fishing location, season, and swordfish targeting). While the calculated economic effects of proposed regulations will depend on the descriptive statistic chosen for analysis, which itself depends on the type of analysis being conducted, results show that considering heterogeneity within this fleet can have a significant effect on predicted economic consequences.

An Economic Analysis of Texas Shrimp Season Closures

Management of the Texas penaeid shrimp fishery is aimed at increasing revenue from brown shrimp, Penaeus aztecus, landings and decreasing the level of discards. Since 1960 Texas has closed its territorial sea for 45-60 days during peak migration of brown shrimp to the Gulf of Mexico. In 1981 the closure was extended to 200 miles to include the U.S. Exclusive Economic Zone. Simulation modeling is used in this paper to estimate the changes in landings, revenue, costs, and economic rent attributable to the Texas closure. Four additional analyses were conducted to estimate the effects of closing the Gulf 1- to 4-fathom zone for 45 and 60 days, with and without effort redirected to inshore waters. Distributional impacts are analyzed in terms of costs, revenues, and rents, by vessel class, shrimp species, vessel owner, and crew.