Transfer function estimation of trade leakages generated by court rulings in the Hawai’i longline fishery

Abstract

Under the Endangered Species Act (ESA) mandate to protect turtle stocks from incidental contact, the Emergency Interim Rule of August 2000 prohibited Hawai’i permit holders from targeting swordfish in the area from the Equator to 28°N and between 173°E and 137°W. As a result of this interim rule, landings of swordfish in Hawai’i decreased 93% in 2001. This paper implements a transfer function analysis to measure trade leakages generated by this ruling. This case study for the Hawai’i fishery measures the limitations of the ESA when enforcement has jurisdiction on some producers, but not others.