Economic Risk and Efficiency Assessment of Fisheries in Abu-Dhabi, United Arab Emirates (UAE): A Stochastic Approach

Eihab Fathelrahman, Aydin Basarir, Mohamed Gheblawi, Sherin Sherif and James Ascough
Additional contact information
Aydin Basarir: Department of Agribusiness and Consumer Sciences, College of Food and Agriculture, United Arab Emirates University, P.O. Box 15551, Al Ain, United Arab Emirates
Mohamed Gheblawi: Department of Agribusiness and Consumer Sciences, College of Food and Agriculture, United Arab Emirates University, P.O. Box 15551, Al Ain, United Arab Emirates
Sherin Sherif: Economics and Agribusiness Department, College of Agriculture, Alexandria University, El-Shatby, Alexandria, Egypt
James Ascough: United Sates Department of Agriculture (USDA), Agricultural Research Services (ARS), Northern Plain Area (NPA), Agricultural Systems Research Unit (ASRU), 2150 Centre Avenue, Building D, Suite 200, Fort Collins, CO 80526, USA

Sustainability, 2014, vol. 6, issue 6, 1-21

Abstract: The fishing industry in Abu-Dhabi, United Arab Emirates (UAE), plays an important role in diversifying food sources in order to enhance national food security. The fishing industry is facing an increasing risk that may impact the sustainability ( i.e. , quantity and quality) of the fish caught and consumed in the UAE. Therefore, the main objective of this study is to analyze common Abu-Dhabi fishing management alternatives using various stochastic dominance techniques ( i.e. , first/second degree stochastic dominance, stochastic dominance with respect to a function and stochastic efficiency with respect to a function) to assess the risk facing UAE fishermen. The techniques represent a risk assessment continuum, which can provide a ranking of management alternatives to improve decision making outcomes and help maintain long-term UAE fishing sustainability. Data for the stochastic dominance analyses were obtained from a cross-sectional survey conducted through face-to-face interviews of Abu Dhabi, UAE, fishermen. Analysis of fishing methods, trap sizes and trap numbers using stochastic efficiency with respect to a function (SERF) showed that fishermen efficient practices were not the same for risk-neutral fishermen compared to risk averse fishermen. Overall, the stochastic dominance results illustrated the importance of considering both attitude towards risk and economic inefficiencies in managing UAE fishery practices and designing successful fishery policies, as well as improving decision-making at the fishermen level.

Keywords: fisheries; technical efficiency; allocative efficiency; stochastic dominance; stochastic efficiency with respect to a function (SERF); socio-economics (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2014
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