Technological Change and the Tragedy of the Commons: The Lofoten Fishery Over Hundred and Thirty Years.

43 Pages Posted: 11 Feb 2010

See all articles by Rognvaldur Hannesson

Rognvaldur Hannesson

Norwegian School of Economics (NHH); Norwegian School of Economics (NHH) - Department of Economics

Kjell G. Salvanes

Norwegian School of Economics (NHH) - Department of Economics; IZA Institute of Labor Economics

Dale Squires

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

Date Written: April 16, 2008

Abstract

Why did the Lofoten cod fishery in Norway – a fishery on one of the world’s richest spawning grounds - remain less productive than alternative industries until the mid-1960s, despite important modernization of the fleet and fishing gear, improvements in technology and institutional change? We analyze the effect of technological change on labor and total factor productivity as well as exit and entry patterns using detailed data for 130 years. Our findings support the important role of natural resources in productivity and improvements in welfare in natural resource-based industries. The total factor productivity has risen faster than labor productivity in the fishery, indicating that the considerable technological progress in this industry has to some extent been neutralized by the decline in the fish stock. Open access to the fish resource most probably led to this situation.

Suggested Citation

Hannesson, Rognvaldur and Salvanes, Kjell G. and Squires, Dale, Technological Change and the Tragedy of the Commons: The Lofoten Fishery Over Hundred and Thirty Years. (April 16, 2008). NHH Dept. of Economics Discussion Paper No. 5/2008. Available at SSRN: https://ssrn.com/abstract=1550841 or http://dx.doi.org/10.2139/ssrn.1550841

Rognvaldur Hannesson (Contact Author)

Norwegian School of Economics (NHH) ( email )

Helleveien 30
Bergen, NO-5045
Norway
+47 55 959 260 (Phone)

Norwegian School of Economics (NHH) - Department of Economics

Helleveien 30
N-5035 Bergen
Norway

Kjell G. Salvanes

Norwegian School of Economics (NHH) - Department of Economics ( email )

Helleveien 30
N-5035 Bergen
Norway
+47 5 595 9315 (Phone)
+47 5 595 9543 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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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