Download this Paper Open PDF in Browser

Heterogeneous Response to Marine Reserve Formation: A Sorting Model Approach

30 Pages Posted: 7 Feb 2010 Last revised: 18 Mar 2014

Junjie Zhang

Duke Kunshan University

Martin D. Smith

Duke University - Nicholas School for the Environment; Duke University - Department of Economics

Date Written: February 5, 2010

Abstract

The bioeconomic impacts of spatial fisheries management hinge on how fishing vessels reallocate their effort over space. However, empirical studies face two challenges: heterogeneous behavioral responses and unobservable resource abundance. This paper addresses these two problems simultaneously by using an unusual data set and an estimation technique developed in the industrial organization literature. We apply the methods to location and species choices in the Gulf of Mexico reef-fish fishery. The models are used to explore spatial effort substitution in response to two marine reserves. Individual attributes from a survey of vessel captains are linked to each fisherman's observed daily trip information to control for observable heterogeneity. Some unobservable abundance information is captured by location- and species-specific constants and estimated by contraction mapping. The empirical results confirm that there is significant heterogeneity in fishermen's response to the formation of marine reserves. They also show that ignoring unobservable abundance information will lead to significant bias in predicting spatial fishing effort.

Keywords: marine reserves, locational sorting, heterogeneous behavior, survey

JEL Classification: Q22, C35

Suggested Citation

Zhang, Junjie and Smith, Martin D., Heterogeneous Response to Marine Reserve Formation: A Sorting Model Approach (February 5, 2010). Environmental and Resource Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1548554 or http://dx.doi.org/10.2139/ssrn.1548554

Junjie Zhang (Contact Author)

Duke Kunshan University ( email )

No. 8 Duke Avenue
Kunshan, 215316
China
+86 512 36657068 (Phone)

HOME PAGE: http://junjiezhang.org

Martin D. Smith

Duke University - Nicholas School for the Environment ( email )

Box 90328
A122 LSRC
Durham, NC 27708-0328
United States
919-613-8028 (Phone)
919-684-8741 (Fax)

HOME PAGE: http://fds.duke.edu/db/Nicholas/esp/faculty/marsmith

Duke University - Department of Economics

213 Social Sciences Building
Box 90097
Durham, NC 27708-0204
United States

Paper statistics

Downloads
29
Abstract Views
373