Use and Non-Use Values in an Applied Bioeconomic Model of Fisheries and Habitat Connections

Abstract

In addition to indirect support to fisheries, marine habitats also provide non-use benefits that are overlooked in most existing bioeconomic models. Our paper expands a dynamic bioeconomic fisheries model in which the presence of natural habitats not only reduces the cost of fishing, via aggregation effects, but also supplies non-use benefits. The theoretical model is illustrated with the analysis of cold water corals in Norway where two fishing methods are considered – destructive bottom trawl and non-destructive coastal gear. Non-use values of cold water corals in Norway are estimated using a discrete choice experiment. Both the theoretical model and its empirical applications show how non-use values impact upon the optimal fishing practices.