Limiting environmental program contradictions: A demand systems application to fishery management

Economically efficient natural resource policy requires the comprehensive management of environmental improvements over a system of sites. Use of multisite demand and benefit models can reduce the number and cost of environmental program contradictions. In this paper we present a multisite demand model that incorporates several quality dimensions for a system of New Mexico fishing sites. Use of the model permits managers to improve total welfare at lower cost by simultaneously distributing opportunity across all elements in resource users' choice sets. Model results show that errors that result from independently adding values of interdependent program elements approach 50%.