The economic impacts of banning commercial bottomfish fishing in the Northwestern Hawaiian Islands

Abstract

This study examines the economic impacts of closing the Northwestern Hawaiian Islands bottomfish fishery, as part of a larger effort to create an effective marine protected area. An overview of the market for NWHI bottomfish in Hawaii is given using input–output data and a fishery closure analysis is conducted using public data on commercial fishing and primary information collected through interviews with wholesalers, restaurants, and retailers. Assuming the worst-case scenario, the wholesale price per pound of Onaga and Opakapaka is estimated to increase by $0.80 and $0.42, respectively. But this is unlikely, as the own-price elasticity of demand for Hawaii-caught bottomfish is found to be highly elastic and there is widespread substitution with imports. The overall economic loss is thus quite small, while the environmental gains of creating the largest marine protected area in the world could be substantial.