Substitution Preferences for Fish in Senegal

Kira Lancker () and Julia Bronnmann ()
Additional contact information
Kira Lancker: German Center for Integrative Biodiversity Halle-Jena-Leipzig (iDiv)
Julia Bronnmann: University of Southern Denmark

Environmental & Resource Economics, 2022, vol. 82, issue 4, No 9, 1015-1045

Abstract: Abstract In a marine multi-species environment, consumers’ decisions may introduce interactions between species beyond biological ecosystem links. The theoretical literature shows that consumer preferences for variety can trigger a sequential (local) extinction of fish stocks. However, consumer preferences are not yet fully understood empirically, as it is uncertain how variety-loving consumers really are, in particular in specific settings such as in developing countries. In this article, we present an aggregation procedure to study consumer preferences in a highly diverse marine system. In a first step, we use co-integration analysis and aggregation theorems by Hicks and Lewbel to find groups of species that consumers find substitutable. In a second step, we use a direct quadratic almost ideal demand system (QUAIDS) to estimate price elasticities between these groups. We then quantify and compare welfare losses and spillovers from species-specific price shocks that may for example result from restoration efforts. Our case study from Senegal across 28 species reveals evidence that consumers do indeed have a preference for diversity of species on their plates.

Keywords: Aggregation; Fish demand; Marine biodiversity; Price elasticities; QUAIDS; Substitution (search for similar items in EconPapers)
JEL-codes: C32 C33 D12 Q18 Q22 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1007/s10640-022-00701-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:enreec:v:82:y:2022:i:4:d:10.1007_s10640-022-00701-1

Ordering information: This journal article can be ordered from
http://www.springer. ... al/journal/10640/PS2

DOI: 10.1007/s10640-022-00701-1

Access Statistics for this article

Environmental & Resource Economics is currently edited by Ian J. Bateman

More articles in Environmental & Resource Economics from Springer, European Association of Environmental and Resource Economists Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().