Marine Life Protection Act (MLPA) Initiative
Fisheries Uses and Values Project
Socioeconomic Impact Analysis: Commercial Fleet
Using methods developed in the NCCSR process it is possible to estimate the "worst-case scenario" or maximum potential economic impact to the commercial fishery sector by combining data generated in this study with other information readily available from other sources. This analysis assumes that each of the MPA network alternatives completely eliminate fishing opportunities in areas closed to specific fisheries and that the fishermen are unable to adjust or mitigate in any way (Wilen et al., 2006). To accomplish this in the SCSR process, we propose using methods similar to what we utilized in the NCCSR process, which approved upon the methods used in the SCCSR process by Wilen and Abbott (2006). The NCCSR differs in a very important respect, that is, by having original survey data on fishermen operating costs collected through the interview process. Wilen and Abbott estimated costs as 65% of gross revenue for all fisheries based on New Zealand and British Columbia data (Wilen and Abbott 2006, pg 7), although costs are known to vary by fishery. The 65% figure was applied as a uniform conservative (high) estimate, since specific data for the study region were not available.
We have employed a new methodology for estimating fishery costs for NCCSR. The approach is a refinement of the uniform 65% method. As mentioned previously, this refinement is possible due to new data gathered during the interview process on fishery specific operating costs in the study area. As part of the fishermen interview process, field staff asked several questions related to operating costs, including:
- What percentage of your gross revenue goes towards overall operating costs?
- Of your overall operating costs, what percentage goes towards crew share or labor?
- Of your overall operating costs, what percentage goes towards fuel?
With the opportunity to interview fishermen directly, information specific to the study region is gained. There is also the opportunity for data resolution regarding types of costs fishermen face. Using data from the fishermen knowledge interviews, two cost categories are created: fixed and variable.
The goal is to allow stakeholders, the SAT, BRTF, FGC, and/or Initiative staff to generate first order estimates of the economic impacts of MPA alternatives.
- Generate a baseline estimate using gross fishing revenues from the landing receipts in the region, 2000-2006.
- Scale gross base case revenues by factors that represent the share of the costs in gross revenues.
- Apply the methods used in the NCCSR to compute and compare net economic values for the various MPA package alternatives using weighted stated importance indices from the fishing grounds.
- Use primary net revenue losses in conjunction ("multiplier effect") with estimated secondary and tertiary effects like net benefits/costs to supporting businesses and consumption service industries to determine total community impacts.
- Determine induced impacts based on the spending of net benefits in the community. The sum of the local expenditures that the fishermen (i.e. vessel owner and crew) generate in their community.
