Alaska Sea Grant
 
Sea Grant Project Completion Report

Updated 24 May 2001
Institution: Alaska Sea Grant College Program
Project Title: Copper River Basin Personal-Use and Subsistence Salmon Fisheries
Project Number: R/32-01 Initiation Date: 02/01/98
Revision Date:   Completion Date: 01/31/00
Principal Investigator: Keith R. Criddle
Affiliation: School of Management/UAF
Co-Principal Investigator: S. Todd Lee
Affiliation: School of Management/UAF
Sea Grant Funds: $29,771
Match Funds: $16,458
Related Projects:  
Parent Projects:  
Keywords: subsistence fishing, salmon, non-market
1. Objectives: To develop an estimate of the net economic benefits that accrue to personal-use and subsistence fishers on the Copper River, Alaska. To estimate changes in net benefits attributable to changes in fish availability.
2. Rationale: Allocation between commercial, sport, and subsistence fishers is a contentious process. Policy makers are often provided with measures of the economic value of commercial activities, yet usually lack comparable information for noncommercial activities.
3. Methodology: We will estimate a zonal travel cost model using an existing time series cross section of about 63,000 trip records.
4. Benefits:
This proposal takes advantage of a unique data set; consequently, the results should be of interest to other researchers. We also anticipate that the results will be of interest to the Alaska Board of Fisheries and to the U.S. Department of the Interior; the former because it must decide on the appropriate allocation between sports subsistence and commercial fishers, and the latter because it is the lead federal agency in the Alaska National Interest Lands Conservation Act (ANILCA)–driven federal takeover of subsistence fisheries management responsibilities.
5. Accomplishments:
The objective of this project can be viewed from two perspectives. First, we set out to obtain estimates of the economic net benefit that accrues to participants in the Copper River personal use and subsistence fishery. Second, we set out to demonstrate that estimates of net economic benefits can be derived from participation data sets routinely collected by resource management agencies. Without denigrating the importance and interest of the first objective, the implications of the second are far more wide-reaching. Although we were successful in accomplishing both objectives, our success was not as complete as we had hoped.

The usual approach to estimating the net economic benefits associated with noncommercial uses of resources such as fisheries is to conduct a carefully designed telephone or postal survey. Because conducting such a survey is costly, few are done and those that are done represent the value of the resource at one time and in one place. That is, the estimate is a snapshot that does little to help managers predict or track changes in net benefits over time or in response to management actions. This limitation effectively prevents the consideration of economic net benefits in management decisions.

Using participation and catch data routinely collected by the Alaska Department of Fish and Game (ADF&G) along with address and household information included on the permit application and economic/demographic information available from government agencies, we obtained statistically sound estimates of the net economic benefits that accrue to Copper River personal use and subsistence fishers. Although we were successful in achieving our objective of developing these estimates without resorting to a costly survey, we were unable to fully exploit the rich data set because average household income information was only available at the community (zip code) level for census years (e.g. 1990). While this limitation is not unique to Alaska, many county and community planning departments routinely estimate such information, and thus studies in other regions may not face a similar data constraint. Alternatively, including a question about household income on the fishing permit application could alleviate this limitation.

Turning to our overt objective of estimating the net economic benefit associated with the Copper River personal use and subsistence fishery, our best estimate of the consumer surplus (economic benefits in excess of participation costs) per trip is $50.93. When expanded to the number of trips taken by the nearly 6,000 households that participated in 1990, we estimate that the fishery generated $578,426 in net economic benefits with a 95% confidence interval of $286,553-$1,106,294. Our estimate of the per-trip surplus exceeds that estimated in previous Alaska Sea Grant–funded research on the Gulkana River sport fishery (Layman, R.C., J.R. Boyce, and K.R. Criddle. 1996. Economic valuation of the chinook salmon sport fishery of the Gulkana River, Alaska, under current and alternate management plans. Land Economics 72:113-128). The Gulkana River is a tributary of the Copper River and thus the sport fishery examined by Layman et al. (1996) harvests chinook salmon from the same stock exploited by the personal use and subsistence fisheries. Layman et al.'s (1996) inflation adjusted estimate is $28.55 consumer surplus per sport fishing trip.

6. Publications:

Henderson, M.M., K.R. Criddle, and S.T. Lee. 1999. The economic value of Alaska's Copper River personal-use and subsistence fisheries. Alaska Fishery Research Bulletin 6(2):63-69.

Presentations:
Henderson (Jones), M.M., K.R. Criddle, and S.T. Lee. 2000. The economic value of Alaska's Copper River personal-use and subsistence fisheries. Western Regional Science Association, Kauai, HI.

Henderson (Jones), M.M., S.T. Lee, and K.R. Criddle. 1999. The economic value of Alaska's Copper River personal-use and subsistence fisheries. Bonneville Chapter, American Fisheries Society, Moab, UT.

7. Students supported:
Jones (Henderson), M.M. 1998. An economic valuation of the personal use and subsistence fisheries for salmon on the Copper River. Directed by S.T. Lee, with K.R. Criddle and M. Herrmann. M.S. Resource Economics, University of Alaska Fairbanks.
8. Extras/Follow-up:
The most "special" outcome of this study was to find that we could in fact obtain good estimates of nonmarket values using data regularly collected by ADF&G. There has long been a disconnect between resource managers and economists. Managers think that the participation data that they gather are valuable and informative. Economists have generally dismissed such data as nonrandom and useless for estimating net economic benefits to recreationists.

The obvious follow-up is to find an approach that will let us get around the lack of household income data. An appropriate follow-up for the Copper River fishery would be to encourage ADF&G to add an income question to their permit application and hold a training session with ADF&G staff to familiarize them with how to estimate the model. We are also continuing to explore alternative estimation methodologies that might allow us to overcome the income data constraint.

 
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