The economic valuation of saltwater marsh supporting marine recreational fishing in the southeastern United States

This paper is concerned with placing an economic value on the contribution of wetlands in supporting recreational fishing in the southeastern United States. A production function first links the recreational catch to angler fishing effort and wetlands. The parameters of the recreational fisheries production function are estimated using cross-sectional data by states. To simplify the mathematics, the estimated elasticities are substituted into a Cobb-Douglas production function. For simplicity, a linear demand curve for recreational fishing is postulated which shifts when there is an increase or decrease in the catch (success rate). Therefore, incremental changes in wetlands will via the production function provide incremental changes in the catch which will in turn shift the recreational demand curve, thereby increasing or decreasing consumer surplus. Using a discount rate of 8.125%, the perpetual flow of consumer surplus per incremental acre of wetlands has an estimated asset value of $6,471 and $981 on the East and West Coast of Florida respectively in 1984 dollars. If commercial fisheries and other economically useful functions of wetlands are added to recreational fisheries, it may be more efficient for the State of Florida to acquire more coastal land for preservation from development.