In this project we wish to expand the bioeconomic modelling of habitat-fisheries interactions, focussing on cold water coral (CWC) and relevant fish species. In addition we want to identify potential non-fisheries values of CWC through valuation studies. There are indications that the public may be very concerned about the impact of deep sea fishing activities on CWC habitats (Glenn et al 2010). Modelling approaches that ignore these effects will fail to accurately measure the returns and risks associated with the marine sector. The values and/or value functions obtained in this survey will then be used to develop the bioeconomic models further.
Hence, two modelling approaches will be used in this study. First, to evaluate the non-market external effects , we will apply random utility models/choice models to measure the external costs and benefits associated with Norwegian cold water corals. A stated preference survey will be employed to develop a better understanding of preferences for CWC by the Norwegi an public and elicit a willingness to pay by the same. A choice experiment survey instrument will be developed, piloted and tested in a number of focus groups at selected sites in Norway during 2011. Subsequently the survey will be used to interview 5-600 respondents at selected sites in Norway. Second, these values will be incorporated into a bioeconomic modelling framework. This approach combines both market and non-market effects to develop a comprehensive model to estimate returns and risks associated with the deep sea. A novel aspect of this research is the consideration given to option and quasi option values which have received scant attention in a deep sea marine context in the literature to date.