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

Kevin J Fox, Quentin Grafton, Thomas Kompas, Tuong Nhu Che

    Research output: Contribution to journalArticle

    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 languageEnglish
    Pages (from-to)189-206
    JournalAustralian Journal of Agricultural and Resource Economics
    Volume50
    Issue number2
    DOIs
    Publication statusPublished - 2006

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