A Short-Run Johansen Industry Model for Common-Pool Resources: Planning a Fishery's Industrial Capacity to Curb Overfishing

Posted: 29 Feb 2008

See all articles by Kristiaan Kerstens

Kristiaan Kerstens

CNRS-LEM (UMR 9221); Catholic University of Lille - IESEG School of Management

Niels Vestergaard

Department of Environmental and Business Economics, University of Southern Denmark

Dale Squires

Government of the United States of America - National Marine Fisheries Service (NOAA Fisheries Service)

Abstract

Current methods for assessing capacity and its utilisation in fisheries operate at the firm-level, but neglect industry capacity. Here, we introduce the Johansen-Färe measure of plant capacity of the firm into a multi-output, frontier-based version of the short-run Johansen industry model. The model determines firm capacity utilisation such that current industry outputs are maintained, while minimising the use of fixed inputs at industry level and assuming abundant variable inputs. Policy extensions relevant to combating overfishing include tightening quotas, seasonal closures, linking economic and plant capacity, decommissioning schemes and area closures, implementation issues and equity considerations. The application to the Danish fisheries reveals substantial overcapacity in the Danish fleet.

Keywords: plant capacity, Danish vessels, industry, planning, efficiency

Suggested Citation

Kerstens, Kristiaan and Vestergaard, Niels and Squires, Dale, A Short-Run Johansen Industry Model for Common-Pool Resources: Planning a Fishery's Industrial Capacity to Curb Overfishing. European Review of Agricultural Economics, Vol. 33, Issue 3, pp. 361-389, 2006. Available at SSRN: https://ssrn.com/abstract=1097964 or http://dx.doi.org/10.1093/erae/jbl017

Kristiaan Kerstens (Contact Author)

CNRS-LEM (UMR 9221) ( email )

60 Boulevard Vauban
BP 109
Lille Cedex, 59016
France

Catholic University of Lille - IESEG School of Management ( email )

3 Rue de la Digue
Lille, 59000
France

Niels Vestergaard

Department of Environmental and Business Economics, University of Southern Denmark ( email )

6700 Esbjerg
Denmark

HOME PAGE: http://www.sdu.dk/staff/nv

Dale Squires

Government of the United States of America - National Marine Fisheries Service (NOAA Fisheries Service) ( email )

8604 La Jolla Shores Drive
La Jolla, CA 92038-0271
United States
858-546-7113 (Phone)
858-546-7003 (Fax)

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