Analyzing Technical and Economic Interrelationships in Hawaii's Longline Fishery

Abstract

This paper provides an analysis of technical and economic interrelationships among species harvested in Hawaii's pelagic longline fishery. The results indicate that this multispecies fishery is characterized by a joint production process, meaning that the regulation of one species would affect the harvest of other species. It implies that a single species regulation may not be appropriate in managing the longline fishery. Estimates of own-price output supply elasticities suggest that fisher's decisions on the amounts of each species harvested are independent of own expected prices. However, as evidenced by the estimates of cross-price elasticities, there are a number of significant technical-economic interactions among species. Failing to reject the null hypothesis of input-output separability suggests that management of the entire fishery as a whole by partial area/seasonal closure or by a 'limited entry' system as in the past is justified instead of regulating a few key species.