Technical efficiency effects of input controls: Evidence from Australia's banana prawn fishery

Tom Kompas, Tuong Nhu Che, R. Quentin Grafton*

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    69 Citations (Scopus)

    Abstract

    This paper provides the first ex post estimates of the effects of input controls on technical efficiency in a fishery. Using individual vessel data from the northern prawn fishery of Australia for the years 1990-1996 and 1994-2000, stochastic production frontiers are estimated to analyse the efficiency impacts of input controls on engine and vessel size. The results indicate that technical efficiency is increasing in a measure of vessel size and engine capacity that was controlled by the regulator from 1985 to 2001, and decreasing in an unregulated input, gear headrope length. The study shows that fishers have substituted from regulated to unregulated inputs over the period 1990-2000 and technical efficiency has declined coincident with increasing restrictions on vessel size and engine capacity. The decline in technical efficiency indicates that the goal of the regulator to increase economic efficiency has not been realized.

    Original languageEnglish
    Pages (from-to)1631-1641
    Number of pages11
    JournalApplied Economics
    Volume36
    Issue number15
    DOIs
    Publication statusPublished - 20 Aug 2004

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