Economic Benefits of Management Reform in the Gulf ofMexico Grouper Fishery: A Semi-parametric Analysis

This paper uses a semi-parametric empirical model to estimate the economic benefitsof adopting a property rights-based management program in the Gulf of Mexico grouperfishery. The analysis predicts that a rights-based fleet will be comprised of fewer, morecost efficient boats than under the current controlled access management program.Results indicate that in the year of our data, 1993, the smaller, more productive fleetcould harvest the allowable reef fish catch at a cost saving of $2.92-$7.07 million, 12-30%less than under controlled access management. Recent tightening of controlled accessregulations suggest that the benefits from management reform could be even larger inthe current day fishery.[...]