Controlling Excess Capacity in Common-Pool Resource Industries: The Transition from Input to Output Controls

17 Pages Posted: 28 Jul 2010

See all articles by Dale Squires

Dale Squires

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

Yongil Jeon

Sungkyunkwan University

Quentin Grafton

The Australian National University

James Kirkley

College of William and Mary

Abstract

Overcapacity is a major problem in common-pool resources. Regulators increasingly turn from limited entry to individual transferable use rights to address overcapacity. Using individual vessel data from before and after the introduction of individual harvest rights into a fishery, the paper investigates how characteristics of rights, scale of operations and transition period affect changes in individual and fleet capacity utilisation and excess capacity. The results indicate that individual harvest rights in both theory and practice offer the potential to address the problem of overcapacity in common-pool resources currently managed with limited-entry regulations.

Suggested Citation

Squires, Dale and Jeon, Yongil and Grafton, Quentin and Kirkley, James, Controlling Excess Capacity in Common-Pool Resource Industries: The Transition from Input to Output Controls. Australian Journal of Agricultural and Resource Economics, Vol. 54, No. 3, pp. 361-377, July 2010, Available at SSRN: https://ssrn.com/abstract=1649742 or http://dx.doi.org/10.1111/j.1467-8489.2010.00497.x

Dale Squires (Contact Author)

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)

Yongil Jeon

Sungkyunkwan University ( email )

53 Myeongnyun-dong 3-ga Jongno-ju
Guro-gu
Seoul, 110-745
Korea, Republic of (South Korea)

Quentin Grafton

The Australian National University ( email )

Crawford School (Bldg 132)
The ANU
Acton, Canberra, Australian Capital Territory 2601
Australia

HOME PAGE: http://https://crawford.anu.edu.au/people/academic/quentin-grafton

James Kirkley

College of William and Mary

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