Global markets and the commons: the role of imports in the US wild-caught shrimp market
The commons literature focuses heavily on rules and the behavior of resource users but places less emphasis on the returns to individual effort. However, for most resource settings, market conditions and associated resource prices are key drivers of exploitation effort. In a globalized world, import...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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IOP Publishing
2022-01-01
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| Series: | Environmental Research Letters |
| Subjects: | |
| Online Access: | https://doi.org/10.1088/1748-9326/ac5b3e |
| _version_ | 1797747093101608960 |
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| author | Frank Asche Atle Oglend Martin D Smith |
| author_facet | Frank Asche Atle Oglend Martin D Smith |
| author_sort | Frank Asche |
| collection | DOAJ |
| description | The commons literature focuses heavily on rules and the behavior of resource users but places less emphasis on the returns to individual effort. However, for most resource settings, market conditions and associated resource prices are key drivers of exploitation effort. In a globalized world, import competition can strongly influence the incentives for individual resource users, a topic largely unexplored in the commons literature. Import competition is especially salient for seafood, one of the most internationally traded food groups. We analyze the US shrimp market, which was once dominated by domestic catches but is now mostly supplied by imports. For domestic producers (users of the commons), lower revenues result, while US consumers eat more shrimp at lower prices. Globalization changed the sources of price risk and compensation that domestic producers face and altered incentives to exploit the commons. In a market dominated by domestic supply shocks, the price response to a shock moderates the effect on revenue and effort. In a market dominated by imports, domestic shocks are buffered by import adjustments, while price movements are determined by global shocks. Despite losses for the domestic fishery, globalization creates new incentives to coordinate effort and capture price premiums determined in the global market. |
| first_indexed | 2024-03-12T15:46:15Z |
| format | Article |
| id | doaj.art-aab4f3486a35441bb3feac34cb85cfb2 |
| institution | Directory Open Access Journal |
| issn | 1748-9326 |
| language | English |
| last_indexed | 2024-03-12T15:46:15Z |
| publishDate | 2022-01-01 |
| publisher | IOP Publishing |
| record_format | Article |
| series | Environmental Research Letters |
| spelling | doaj.art-aab4f3486a35441bb3feac34cb85cfb22023-08-09T15:26:13ZengIOP PublishingEnvironmental Research Letters1748-93262022-01-0117404502310.1088/1748-9326/ac5b3eGlobal markets and the commons: the role of imports in the US wild-caught shrimp marketFrank Asche0https://orcid.org/0000-0002-1540-9728Atle Oglend1Martin D Smith2https://orcid.org/0000-0002-4714-463XSchool of Forest, Fisheries and Geomatics Sciences and Food Systems Institute, University of Florida , Gainesville FL, United States of America; Department of Industrial Economics, University of Stavanger , Stavanger, NorwayDepartment of Industrial Economics, University of Stavanger , Stavanger, NorwayGeorge M. Woodwell Distinguished Professor of Environmental Economics, Nicholas School of the Environment and Department of Economics, Duke University , Durham, NC, United States of AmericaThe commons literature focuses heavily on rules and the behavior of resource users but places less emphasis on the returns to individual effort. However, for most resource settings, market conditions and associated resource prices are key drivers of exploitation effort. In a globalized world, import competition can strongly influence the incentives for individual resource users, a topic largely unexplored in the commons literature. Import competition is especially salient for seafood, one of the most internationally traded food groups. We analyze the US shrimp market, which was once dominated by domestic catches but is now mostly supplied by imports. For domestic producers (users of the commons), lower revenues result, while US consumers eat more shrimp at lower prices. Globalization changed the sources of price risk and compensation that domestic producers face and altered incentives to exploit the commons. In a market dominated by domestic supply shocks, the price response to a shock moderates the effect on revenue and effort. In a market dominated by imports, domestic shocks are buffered by import adjustments, while price movements are determined by global shocks. Despite losses for the domestic fishery, globalization creates new incentives to coordinate effort and capture price premiums determined in the global market.https://doi.org/10.1088/1748-9326/ac5b3eseafood demandimport competitionfisherieslaw of one priceseafood supply chain |
| spellingShingle | Frank Asche Atle Oglend Martin D Smith Global markets and the commons: the role of imports in the US wild-caught shrimp market Environmental Research Letters seafood demand import competition fisheries law of one price seafood supply chain |
| title | Global markets and the commons: the role of imports in the US wild-caught shrimp market |
| title_full | Global markets and the commons: the role of imports in the US wild-caught shrimp market |
| title_fullStr | Global markets and the commons: the role of imports in the US wild-caught shrimp market |
| title_full_unstemmed | Global markets and the commons: the role of imports in the US wild-caught shrimp market |
| title_short | Global markets and the commons: the role of imports in the US wild-caught shrimp market |
| title_sort | global markets and the commons the role of imports in the us wild caught shrimp market |
| topic | seafood demand import competition fisheries law of one price seafood supply chain |
| url | https://doi.org/10.1088/1748-9326/ac5b3e |
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