Measuring the initial economic effects of hurricanes on commercial fish production: the US Gulf of Mexico grouper (Serranidae) fishery
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A stochastic production frontier was used to measure the initial (i.e., bi-weekly) economic effects of hurricanes on commercial grouper (Serranidae) production in the Exclusive Economic Zone of the United States Gulf of Mexico from 2005 to 2009. We estimated the economic effects of productivity losses associated with specific hurricanes on the commercial grouper fleet. We also calculated the economic effects due to productivity losses during an entire hurricane season at the regional level. The empirical model controls for input levels as well as other factors affecting production to isolate the initial economic effect caused by hurricanes from other non-weather-related factors. The empirical results revealed that hurricanes striking the Gulf of Mexico coastline from 2005 to 2009 had a negative effect on the production of the commercial grouper fleet. The results also demonstrated the relative importance of inputs and regulations on fish production.
KeywordsHurricanes Economic damage Commercial fisheries Stochastic production frontier US Gulf of Mexico
The authors gratefully acknowledge helpful comments from Juan Agar, Stephen Holiman, two anonymous reviewers, and participants at the 10th Annual Climate Prediction Applications Science Workshop (CPASW), Miami, FL, and the 2011 Southeast Climate Consortium Annual Review Meeting, Tallahassee, FL. The authors also acknowledge the technical support provided by Paul Baertlein, Alexandra Bozec, Mark Powell, and Austin Todd.
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