Modeling protected species as an undesirable output: the case of sea turtle interactions in Hawaii's longline fishery.

Interactions with sea turtles have occurred at an alarming rate in swordfish longlining in Hawaii in recent years and various regulations have been put forward to protect sea turtles. In order to understand the cost of reducing sea turtle interactions, methods have been developed to derive the shadow price of sea turtle bycatch based on fisher's welfare loss from a specific regulation. This paper illustrates an alternative method of calculating temporal and trip-specific cost of sea turtle bycatch reduction. The advantages of this method lie in the computation of shadow price without assuming specific regulation implementation and its relatively modest data requirement. A parametric output distance function is used to simultaneously model desirable and undesirable catches. Using the duality argument, the revenue-related shadow price of sea turtle bycatch can be derived from the estimated distance function. Average shadow price of sea turtle bycatch for the period 1991-1999 is estimated to be US $30873 in 1991 dollars. Average shadow prices of sea turtle bycatch by trip characteristics, such as fishing year, trip type and location are also estimated. Such information can be useful for policy makers to analyze tradeoffs and make appropriate policy decisions.