The valuation of sportfishing harvest methods is a prominent research area in marine resource economics. The article “Valuation of Sportfishing Harvest” by Carter and Liese (2010) provides a comprehensive examination of this strategy using a hedonic theory, commonly utilized for distinguishing and managing produce in charter fishing services. The authors construct an original model to project how charter traveling expenses may fluctuate based on the characteristics of the journeys and harvests in particular locations. The resulting formula is applied to ascertain deepwater fishing utilizing the boats’ traveling distances data from 23 countries surrounding the Gulf of Mexico (Carter and Liese, 2010).
Carter and Liese first examine the core factors of charter trips, such as the number of passengers, trip duration, and geographical locations. After that, the authors implement spatial variation to define harvesting levels and fish sizes. Finally, a two-stage minimum distance estimator is applied to eliminate the issues that commonly arise during hedonic prognosis. As a result, Carter and Liese outline the connections between charter fees, the number of fish kept by the anglers, and the potential fish weight based on the market characteristics.
The scholars suggest that the study’s findings are highly valuable for valuing sportfishing harvest. As the devised formula incorporates actual market prices rather than estimated costs, it eliminates potential measurement issues and allows to project cardinal measures, a crucial part of resource allocation efficiency. Nevertheless, it is also noted that the proposed model has its limitations, namely the assumption of competitive equilibrium and the availability of expected harvest characteristics in charter fees distribution data (Carter and Liese, 2010). However, the authors conclude that the devised approach is beneficial for estimating the alterations in charter trip fees, as these obstacles are often encountered in valuation studies.
Reference List
Carter, D.W. and Liese, C. (2010) ‘Hedonic valuation of sportfishing harvest’, Marine Resource Economics, 25(4), pp. 391–407. Web.