Capacity reduction, quota trading and productivity: The case of a fishery

Kevin J. Fox; R. Quentin Grafton; Tom Kompas; Tuong Nhu Che

doi:10.1111/j.1467-8489.2006.00331.x

Capacity reduction, quota trading and productivity: The case of a fishery

Kevin J. Fox^*, R. Quentin Grafton, Tom Kompas, Tuong Nhu Che

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

33 Citations (Scopus)

Abstract

We present the first ex post study that quantitatively analyses the effects of a licence buy-back and enhanced quota trading on the profitability and productivity of individual vessels in a fishery. Using firm-level data and a profit index decomposition method, we find that small and large vessels and three different trawler fleets all experienced substantial productivity gains in the year immediately following a licence buy-back and the establishment of a quota brokerage service. The apparent ongoing benefits of the buy-back and increased quota trading over the sample period are in stark contrast to the generally unfavourable long-term outcomes commonly associated with vessel buy-backs in input-controlled fisheries.

Original language	English
Pages (from-to)	189-206
Number of pages	18
Journal	Australian Journal of Agricultural and Resource Economics
Volume	50
Issue number	2
DOIs	https://doi.org/10.1111/j.1467-8489.2006.00331.x
Publication status	Published - Jun 2006

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title = "Capacity reduction, quota trading and productivity: The case of a fishery",

abstract = "We present the first ex post study that quantitatively analyses the effects of a licence buy-back and enhanced quota trading on the profitability and productivity of individual vessels in a fishery. Using firm-level data and a profit index decomposition method, we find that small and large vessels and three different trawler fleets all experienced substantial productivity gains in the year immediately following a licence buy-back and the establishment of a quota brokerage service. The apparent ongoing benefits of the buy-back and increased quota trading over the sample period are in stark contrast to the generally unfavourable long-term outcomes commonly associated with vessel buy-backs in input-controlled fisheries.",

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AU - Kompas, Tom

AU - Che, Tuong Nhu

PY - 2006/6

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AB - We present the first ex post study that quantitatively analyses the effects of a licence buy-back and enhanced quota trading on the profitability and productivity of individual vessels in a fishery. Using firm-level data and a profit index decomposition method, we find that small and large vessels and three different trawler fleets all experienced substantial productivity gains in the year immediately following a licence buy-back and the establishment of a quota brokerage service. The apparent ongoing benefits of the buy-back and increased quota trading over the sample period are in stark contrast to the generally unfavourable long-term outcomes commonly associated with vessel buy-backs in input-controlled fisheries.

KW - Capacity reduction

KW - Fishery

KW - Productivity

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SP - 189

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JO - Australian Journal of Agricultural and Resource Economics

JF - Australian Journal of Agricultural and Resource Economics

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ER -

Capacity reduction, quota trading and productivity: The case of a fishery

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