The Impact of the MSC certification on the Japanese fisheries: Case of the Kyoto Flathead Flounder Danish Seine Fishery

Wakamatsu, Hiroki (2012): The Impact of the MSC certification on the Japanese fisheries: Case of the Kyoto Flathead Flounder Danish Seine Fishery.

Abstract

This paper investigates the impact of a Japanese fishery’s MSC certification on the related seafood markets. In September 2008, the Marine Stewardship Council (MSC) certified the Kyoto flat-head flounder Danish seine fishery (KDSFF) as the first sustainable fishery in Asia. Assuming the MSC certification has an impact on the fishery, the overall goal is to examine the benefit of the KDSFF from the MSC certification. The benefit is examined by a cointegration and structural break test whether the KDSFF experiences market segregation by the certification. The monthly ex-vessel price is analyzed compared with the prices of the adjacent prefectures: Fukui and Hyogo prefectures. The structural break test showed that the significant impact on the structure of the flathead flounder fisheries while there is no increase in price. In conclusion, the KDSFF benefits from the MSC certification in that the market used to be easily influenced by the other larger markets, but became less influenced by them after the introduction of the MSC certification.

• Item Type: MPRA Paper
• Language: English
• Keywords: MSC certification, Japanese Fishery, Cointegration, Structural Break
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q13 - Agricultural Markets and Marketing ; Cooperatives ; Agribusiness; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development ; Environment and Trade ; Sustainability ; Environmental Accounts and Accounting ; Environmental Equity ; Population Growth; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes

References

Ariji, M. 2006. Quantitative Analysis of Fishery Economics: Theory and Practice (Japanese). Tokyo: Seizan Shoten Co.

Asche, F., A.G. Guttormsen, T. Sebulonsen, and E.H. Sissener. 2005. "Competition between farmed and wild salmon: the Japanese salmon market." Agricultural Economics 33:333-340.

Bai, J., and P. Perron. 1998. "Estimating and Testing Linear Models with Multiple Structural Changes." Econometrica 66:47-78.

Copeland, L.S. 1991. "COINTEGRATION TESTS WITH DAILY EXCHANGE-RATE DATA." Oxford Bulletin of Economics and Statistics 53:185-198. Enders, W. 2004. Applied Econometric Time Series. 2nd ed: John Wiley & Sons, Inc.

Engle, R.F., and C.W.J. Granger. 1987. "COINTEGRATION AND ERROR CORRECTION - REPRESENTATION, ESTIMATION, AND TESTING." Econometrica 55:251-276.

Engle, R.F., and V.K. Ng. 1993. "MEASURING AND TESTING THE IMPACT OF NEWS ON VOLATILITY." Journal of Finance 48:1749-1778.

Falk, M. 2010. "A dynamic panel data analysis of snow depth and winter tourism." Tourism Management 31:912-924. FAO (2006) "Fishery Commodities Global Production and Trade (online query)." In., FAO.

FRISJ. 2010. Stock Recovery Plan for Flathead Flounder (and Snow Crab) in the Western Area of Sea of Japan. Fishery Angency.

Fukui Prefecture 2010. Fish in Fukui: Enegetic Sales Strategy (Japanese).

Gudmundsson, E., and C.R. Wessells. 2000. "Ecolabeling Seafood for Sustainable Production: Implications for Fisheries Management." Marine Resource Economics 15:97-113.

Hamilton, J.D. 1996. "The daily market for federal funds." Journal of Political Economy 104:26-56.

Hyogo Prefecture 2006. Hyogo Prefecture Wholesale Market Arrangement Plan (Japanese).

Ishida, T., and M. Fukushige. 2010. "The effects of fishery harbor-based brands on the brand equity of shore fish: An empirical study of branded mackerel in Japan." Food Policy 35:488-495.

Johansen, S., and K. Juselius. 1990. "MAXIMUM-LIKELIHOOD-ESTIMATION AND INFERENCE ON COINTEGRATION - WITH APPLICATIONS TO THE DEMAND FOR MONEY." Oxford Bulletin of Economics and Statistics 52:169-210.

Loureiro, M.L., and S. Hine. 2002. "Discovering Niche Markets: A Comparison of Consumer Willingness to Pay for Local (Colorado Grown), Organic, and GMO-Free Products." Journal of Agricultural and Applied Economics 34:477-477-487.

MSC (2011) "More choice for seafood consumers as MSC-labelled products reach 10,000 mark." In. http://www.msc.org/.

Nijs, V.R., M.G. Dekimpe, J. Steenkamp, and D.M. Hanssens. 2001. "The category-demand effects of price promotions." Marketing Science 20:1-22. Sathianandan, T. 2006. "Modeling marine fish landings and environment using VARX models." Journal of the Marine Biological Association of India 48:46-50.

Schafer, J.L., and M.K. Olsen. 1998. "Multiple imputation for multivariate missing-data problems: A data analyst's perspective." Multivariate Behavioral Research 33:545-571.

Shahi, C., S. Kant, and F. Yang. 2006. "The Law of One Price in the North American softwood lumber markets." Forest Science 52:353-366.

Singerman, A., S.H. Lence, and K.E. Amanda. 2010. Title."Unpublished, Institution|.

Slade, M.E. 1986. "EXOGENEITY TESTS OF MARKET BOUNDARIES APPLIED TO PETROLEUM-PRODUCTS." Journal of Industrial Economics 34:291-303.

Yamasaki, A. Kyoto Forestry and Fisheries Technology Center. Zeileis, A., C. Kleiber, W. Krämer, and K. Hornik. 2003. "Testing and dating of structural changes in practice." Computational Statistics & Data Analysis 44:109-123.