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Title: Economic risk and efficiency assessment of fisheries in Abu-Dhabi, United Arab Emirates (UAE): A stochastic approach

Author
item FATHELRAHMAN, EIHAB - United Arab Emirates
item BASARIR, AYDIN - United Arab Emirates
item GHEBLAWI, MOHAMED - United Arab Emirates
item SHERIF, SHERIN - Alexandria University Of Egypt
item Ascough Ii, James

Submitted to: Sustainability
Publication Type: Peer Reviewed Journal
Publication Acceptance Date: 8/21/2014
Publication Date: 10/8/2014
Citation: Fathelrahman, E., Basarir, A., Gheblawi, M., Sherif, S., Ascough II, J.C. 2014. Economic risk and efficiency assessment of fisheries in Abu-Dhabi, United Arab Emirates (UAE): A stochastic approach. Sustainability. 6(6):3878-3898.

Interpretive Summary: The fishing industry in Abu-Dhabi, United Arab Emirates (UAE) plays an important role in diversifying food sources in order to enhance national food security, and is facing increasing risk that may impact the sustainability of the fish caught and consumed in the UAE. The main objective of this study is to analyze common Abu-Dhabi fishing management alternatives using various stochastic dominance techniques to assess the risk facing UAE fishermen. The techniques represent a risk assessment continuum which can provide a ranking of management alternatives to improve decision making outcomes and help maintain long-term UAE fishing sustainability. Data for the stochastic dominance analyses were obtained from a cross-sectional survey conducted through face-to-face interviews of Abu Dhabi, UAE fishermen. Analysis of fishing methods, trap sizes, and trap numbers using stochastic efficiency with respect to a function (SERF) showed that fishermen efficient practices were not the same for neutral or risk averse fisherman compared to risk avoidance fishermen. Overall, the stochastic dominance results illustrated the importance of considering both attitude towards risk and economic inefficiencies in managing UAE fisheries practices and improving decision making at the fishermen level.

Technical Abstract: The fishing industry in Abu-Dhabi, United Arab Emirates (UAE) plays an important role in diversifying food sources in order to enhance national food security. The fishing industry is facing increasing risk that may impact the sustainability (i.e., quantity and quality) of the fish caught and consumed in the UAE. Therefore, the main objective of this study is to analyze common Abu-Dhabi fishing management alternatives using various stochastic dominance techniques (i.e., first/second degree stochastic dominance, stochastic dominance with respect to a function, and stochastic efficiency with respect to a function) to assess the risk facing UAE fishermen. The techniques represent a risk assessment continuum which can provide a ranking of management alternatives to improve decision making outcomes and help maintain long-term UAE fishing sustainability. Data for the stochastic dominance analyses were obtained from a cross-sectional survey conducted through face-to-face interviews of Abu Dhabi, UAE fishermen. Analysis of fishing methods, trap sizes, and trap numbers using stochastic efficiency with respect to a function (SERF) showed that fishermen efficient practices were not the same for neutral or risk averse fisherman compared to risk avoidance fishermen. Overall, the stochastic dominance results illustrated the importance of considering both attitude towards risk and economic inefficiencies in managing UAE fisheries practices and designing successful fisheries policies, as well as improving decision making at the fishermen level.