An Econometric Market Model for the Pacific Halibut Fishery

Abstract

The Alaska and British Columbia fishery for Pacific halibut has undergone substantial restructuring over the last decade, from a regulated open-access no-holds-barred derby that largely relied on frozen inventories to satisfy market demand, to a slow-paced individual quota-based fishery that has reorganized supply chains to deliver high-quality fresh product throughout a protracted season. We have developed a simultaneous equation model of the markets for Pacific halibut and used simulations based on our model to examine: (i) linkages between harvest and revenue; (ii) ex-vessel price and revenue-induced consequences of the Alaska IFQ program; (iii) likely ex-vessel price and revenue effects of the proposed elongation of the halibut season; and (iv) potential effects of the emergence of competing supplies from halibut aquaculture.