• Analyzing factors affecting Alaska's salmon permit values: evidence from Bristol Bay drift gillnet permits

      Wood, Mackenzie D.; Baek, Jungho; Little, Joseph; Greenberg, Joshua (2017-05)
      The effects of total earnings, total costs and mining exploration on permit prices in Alaska are investigated using an autoregressive distributed lag (ARDL) approach to cointegration. I take specific account of regional and gear specific salmon fisheries -- that is, Bristol Bay drift gillnet permits -- in our modelling. I find that there is a stable long-run relationship among permit prices, total earnings, and total costs. It is also found that, in both the short- and long-run, total earnings have a positive and significant relationship with permit prices, while total costs have a negative and significant relationship. Although the mining exploration in the region has a negative and significant effect on permit prices in the short-run, the effect does not seem to last in the long-run.
    • Changes in the value of the Southeast Alaska salmon purse seine limited entry permits following two permit buy back programs

      Shriver, Jennifer Christine (2014-12)
      The Southeast Alaska salmon purse seine fishery (S01A) is an Alaska state waters limited entry fishery. When initially limited by the Commercial Fisheries Entry Commission in 1975, 419 permanent permits were issued. As salmon prices dropped in the late 1990s, current and expected future revenues also dropped leading to a decline in the market value of permit. This led permitees to look at different ways to improve their economic position. Reduction of permit numbers through the buyback and permanent retirement of some permits emerged as a preferred option for the S01A fishery; it was motivated as the best means to improve economic conditions in the fishery. After a very long road of regulatory changes at the state and federal level, 35 permits were bought and retired in 2008 using funds provided under a federal grant. A second buyback in 2012, based on a federally backed fishery reduction loan led to the retirement of 65 additional permits. Basic economic principles suggest that resulting decrease in supply of limited entry permits would lead to an increase in the market value of remaining permits. An important policy question is: whether the increased value to permitees is sufficient to offset the cost to taxpayers of financing the buyback. However, conducting that cost-benefit assessment is made difficult because of unrelated but concomitant changes in exvessel prices and catch volumes. During the same time that permits were being removed through the buyback, the exvessel value of salmon increased as did the volume of Southeast Alaska salmon harvests, per-vessel average exvessel gross earnings, and the market value of S01A permits. Econometric analyses based on Alaska Commercial Fisheries Entry Commission (CFEC) time series data on S01A permit values, estimated gross earnings, and salmon prices indicate that the buybacks led to statistically significant increases in the asset value of S01A LEPs. In light of the program's stated goals, the buyback was a qualified success in increasing the asset value of S01A permits and removing latent fishing capacity from returning to the fishery as exvessel prices increased. The buyback did not change the fundamental conditions that precondition the Alaska salmon LEP program to systematic vulnerabilities inherent in a management system that does not counter the pernicious race for fish motivations of participants.
    • Urban stream management: interdisciplinary assessment of the Ship Creek fishery

      Krupa, Meagan B. (2009-05)
      The Lower Ship Creek Fishery in the city of Anchorage, Alaska is one of the state's most popular sport fisheries. After years of channelization and development, this social-ecological system (SES) continues to experience the effects of urbanization and is struggling to achieve robustness. I applied a robustness framework to the management of management this fishery because of its semi-engineered nature. This framework uses interdisciplinary methods to study the interrelationships between the fishery's socio-economic and ecological components. Robustness is more appropriate than resilience as an analytical framework because of the relative insensitivity of the engineered components to ecological feedbacks. On Lower Ship Creek, the engineered hatchery fish continue to thrive despite declining stream conditions. The robustness of this fishery contributes to the resilience of the city by increasing local food and recreation options and supporting a diverse set of businesses. To study the robustness of this SES in the context of the resilience of Anchorage, I first combined historical photos and existing Ship Creek data with research conducted on other streams to create an environmental history of the creek. This history then was used to describe how eras of urban development have altered the creek's ecosystem processes and created new ecological constraints related to 1) loss of wetlands and riparian vegetation; 2) erosion, pollution, and channelization; 3) loss of fish species; and 4) flow alteration and habitat loss. Using Lovecraft's (2008) typology, I proposed four plausible management scenarios that highlight the trade-offs associated with management of this fishery: 1) Ship Creek Redesign, 2) Mitigation, Construction, and Maintenance, 3) KAPP Dam Removal, and 4) Business as Usual. The second of these scenarios is most consistent with the current ecological constraints, the characteristics preferred by most stakeholders, and current socio-economic trends. Since Scenario 2 will require a large monetary investment, I examined this SES's cost structure and compared it with previously published analyses of the economic benefits of the fishery. By quantifying the costs borne by each agency, I showed how externalities produce intra- and inter-agency tension. These data were used to construct a new cost-sharing framework that provides decision makers with an economic incentive to work more cooperatively in the future. I then explored the interrelationship of the SES's socioeconomic and ecological subsystems, using Anderies et al.'s (2004) framework. I applied Ostrom's design principles (1990) to sport fisheries to explore the reasons why agencies have not cooperated to produce a more robust fishery. This SES fails to meet three of the design principles: it lacks 1) an equal proportion of benefits and costs, 2) collective-choice arrangements, and 3) user and biophysical monitoring. I then suggest how to improve the design and increase the robustness of this SES. This study proposes that the maintenance of semi-engineered systems is important both for local users and for the resilience of states and countries. In the context of global trends toward increasing urbanization, this study provides an interdisciplinary approach to increasing the robustness of urban streams and building resilience within states and countries.