Mitigating Impacts of Natural Hazards on Fishery Ecosystems

From Jubilees to Halos: Clarifying the Economic Effects of Harmful Algal Blooms on Commercial Fisheries

Porter Hoagland

doi: https://doi.org/10.47886/9781934874011.ch19

Abstract.—Harmful algal blooms (HABs) are widely thought to have negative economic effects on commercial fisheries. Over the years, many studies have been carried out to estimate these effects, using a variety of methodologies, from simple to complex. While some of these studies are useful, many others ignore some of the important characteristics of the biology of fish stocks, the behavior of firms in the harvesting sector, the exvessel markets for fresh or partially processed fish, and the characteristics of wholesale markets and markets of substitute seafood products. Accounting for these important features of fisheries can make a difference in terms of the occurrence and scale of economic effects. Further, in order to develop appropriate mitigation strategies, it is important to characterize correctly the size and distribution of economic effects. In this paper, I present an overview of some of the most important considerations when undertaking estimates of the economic effects of HABs on commercial fisheries. I discuss fishery closures, untapped resources, capital and labor malleability, processing costs, halo effects, and some of the issues of efficiency and distribution that arise in these contexts. I illustrate the discussion using real-world examples from HAB-impacted fisheries around the nation. I conclude with some recommendations for estimating the economic impacts of HABs in commercial fisheries in the future.