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Application of Benefit‐Cost Analysis to Fisheries Allocation Decisions: The Case of Alaska Walleye Pollock and Pacific Cod
Author(s) -
Herrick Samuel F.,
Strand Ivar,
Squires Dale,
Miller Morton,
Lipton Douglas,
Walden John,
Freese Stephen
Publication year - 1994
Publication title -
north american journal of fisheries management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.587
H-Index - 72
eISSN - 1548-8675
pISSN - 0275-5947
DOI - 10.1577/1548-8675(1994)014<0726:aobcat>2.3.co;2
Subject(s) - pollock , gadus , fishery , gadidae , fisheries management , business , atlantic cod , fishing , fish <actinopterygii> , biology
The controversy surrounding a proposal to allocate walleye pollock Theragra chalcogramma and Pacific cod Gadus macrocephalus harvested in U.S. fisheries off Alaska is reviewed. The walleye pollock allocation, which generated the most concern, would apportion specific shares of the allowable catch to each of the two harvesting sectors, inshore and offshore, along with a set‐aside for Alaska community development. The potential transfer is of enormous economic value for industry participants and underscores the importance of identifying the net economic gains (or losses) to the nation that might arise under the proposed allocation scheme. For this reason, a benefit‐cost analysis was pivotal in the allocation decisions reached by the U.S. Department of Commerce. The benefit‐cost analysis of the allocation proposal served to focus attention on the need for consistent social welfare accounting, of the kind that benefit‐cost analysis provides, when management actions are evaluated. Conceptual and practical problems associated with the analysis are discussed as well as their solutions, and fundamental concerns that may be peculiar to benefit‐cost analysis in fisheries are specifically noted.