Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/312819 
Year of Publication: 
2022
Citation: 
[Journal:] Environmental and Resource Economics [ISSN:] 1573-1502 [Volume:] 82 [Issue:] 4 [Publisher:] Springer Netherlands [Place:] Dordrecht [Year:] 2022 [Pages:] 1015-1045
Publisher: 
Springer Netherlands, Dordrecht
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.
Subjects: 
Aggregation
Fish demand
Marine biodiversity
Price elasticities
QUAIDS
Substitution
JEL: 
Q18
Q22
D12
C32
C33
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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