Assessing cross-regional flows of economic benefits: A case study of Pacific halibut commercial fishing in Alaska

Abstract

The economic effects of changes to harvest levels can be far-reaching. Fisheries management policies that alter catch limits have a direct impact on harvesters, but at the same time, there is a ripple effect through the economy. To bring a better understanding of the magnitude of this multiplier effect, this paper applies multiregional economic impact assessment to the case study of Pacific halibut commercial fishing in Alaska.The results suggest that the revenue generated by Pacific halibut at the harvest stage accounts for only a fraction of economic activity that would be forgone if the resource was not available to fishermen. However, the adoption of a multiregional approach to the economic impact assessment highlights that a myriad of economic benefits in this case are realized far from where the resource is harvested. This results from strong economic ties the Alaskan fishing activities have to the economy of the rest of the United States, be it through trade, nonresident workforce or out-of-state investment in production factors such as fishing quotas.