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


    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
    Issue number2
    Publication statusPublished - 2006


    Dive into the research topics of 'Capacity reduction, quota trading and productivity: the case of a fishery'. Together they form a unique fingerprint.

    Cite this