Fish, Farmers, and Floods: Coordinating Institutions to Optimize the Provision of Ecosystem Services

Cloé Garnache

Journal of the Association of Environmental and Resource Economists, 2015, vol. 2, issue 3, 367 - 399

Abstract: This paper investigates the role of coordinating institutions on the returns to ecosystem services in the context of fisheries and habitat management. It examines the trade-offs between the production of crops and habitat for juvenile salmon in relation to flood events on a California floodplain. A bioeconomic model of the floodplain agriculture, salmon population, and California ocean fishery is developed to estimate the farmers' and fishers' economic surpluses. The results reveal large total surpluses gains for producers from coordinating the institutions to jointly manage the freshwater and marine ecosystems. The gains from improving habitat management exceed those from optimally setting the harvest. These findings provide important insights for fisheries management where efforts have traditionally focused on improving harvest levels.

Date: 2015
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