Bioeconomic Relationships 



for the Maine American Lobster Fishery 



with Consideration of Alternative Management Schemes 



ROBERT L. DOW, FREDERICK W. BELL, and DONALD M. HARRIMAN' 



I. INTRODUCTION 



The American lobster (Homarus americanus) was 

 an important food source to the indigenous coastal 

 peoples and later to the early European settlers. 

 Until the early decades of the 19th century, how- 

 ever, the Maine lobster resource was not fished com- 

 mercially to any appreciable extent. Out-of-state 

 lobstermen first appeared off the Maine coast in 

 Casco Bay during 1826. This development marked 

 the beginning of the commercial fishery and was a 

 direct result of the growing demand for lobsters in 

 the New York City and Boston markets. Resident 

 and nonresident fishermen participated, extending 

 their operations eastward to Penobscot Bay and 

 Eastport by 1850. Shipbuilding and sailing were the 

 major occupations of the Maine coastal population; 

 lobstering was a seasonal, part-time vocation. 



Lobster pots evolved as the most important type 

 of gear during the early stages of the fishery, replac- 

 ing hoop nets, gaffs, dip nets, and hook and line. 

 Live lobsters were transported to urban markets 

 aboard wet-well smacks equipped with holds in 

 which seawater circulated freely. Dry-well smacks, 

 similar to ordinary cargo carriers, were also used. 

 During its earliest stages, lobster fishing was limited 

 to those areas served by public transportation. 



As the demand for American lobster expanded over 

 the last hundred years, it was quite apparent that the 

 once virgin lobster stock was increasingly exploited. 

 The increasing depletion of fishing grounds in several 

 areas off the coasts of the United States has created 

 many problems of biological as well as economic na- 

 ture. 



Unlike most industries, the inshore lobster industry 

 is faced with the problem created by a common prop- 

 erty resource. The nature of this resource produces 

 many unique problems and has given rise to many 



'The late Donald M. Harriman contributed extensively to the 

 biological portion of the study. Robert L. Dow is Research Director 

 of the Department of Marine Resources (Maine) (formerly the De- 

 partment of Sea and Shore Fisheries), while Frederick W. Bell is 

 currently Professor of Economics at Florida State University. We 

 would like to thank Terry Ellington and Richard Kinoshita for their 

 help in some of the statistical analyses and Shelva Page for her 

 editorial and typing assistance. 



"conservation" objectives. Because unlimited entry 

 to a common property resource produces excess 

 capacity, it is the purpose of this report to present a 

 theoretical and empirical basis for the "conservation" 

 of capital and labor in exploiting inshore American 

 lobster resources. We shall define "conservation" in a 

 broad sense to include the efficient and economic use 

 of capital, labor, and the American lobster resource. 



Biologists embark on studies concerning the re- 

 habilitation of these fishing grounds, their mainte- 

 nance, and eventually the accomplishment of higher 

 yields. Economists follow closely the loss of income 

 which occurs in connection with depleted areas, the 

 increased flow of income in connection with rehabili- 

 tated areas, and the effects of price changes on pro- 

 duction and vice versa. 



Most of the studies undertaken until now were 

 either done by biologists alone or by economists alone. 

 Independent studies by each group, separate from the 

 other group, and independent solutions to specific 

 problems may lead to unsound conclusions both from 

 a biological and an economic viewpoint. 



Because of these conditions and the interaction of 

 economic and biological forces, a combined study of 

 the management problem in the biological field and of 

 problems with respect to price and marketing would 

 appear to yield fruitful results as to principles involved 

 in this interacting process. 



The objectives of this study shall be as follows: 



(1) To measure the biological factors that determine 

 the trend and fluctuations in abundance and produc- 

 tion of the Maine American lobster; 



(2) To analyze the impact of such economic forces 

 as the demand for lobster and cost of operations on the 

 production of lobster from this biological resource; 



(3) To measure the returns to lobster boat owners 

 operating in the fishery; 



(4) To establish a model for evaluating the 

 economic-biological interrelationships so important to 

 fisheries management; 



(5) To analyze the impact on fishermen and the lob- 

 ster resource of alternative management schemes 

 designed to prevent excessive capitalization of 

 the fishery; 



(6) To determine if the economy and fishing industry 

 will be improved by better fishery management. 



