Capacity Reduction, Quota Trading and Productivity: The Case of a Fishery

18 Pages Posted: 3 Jul 2006

See all articles by Kevin J. Fox

Kevin J. Fox

UNSW Australia Business School, School of Economics

R. Quentin Grafton

Australian National University (ANU) - Centre for Resource and Environmental Studies (CRES); Australian National University (ANU) - Crawford School of Public Policy

Tom Kompas

Australian National University (ANU) - Crawford School of Public Policy

Tuong Nhu Che

Government of the Commonwealth of Australia - Australian Bureau of Agricultural and Resource Economics (ABARE)

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.

Suggested Citation

Fox, Kevin J. and Grafton, R. Quentin and Kompas, Tom and Che, Tuong Nhu, Capacity Reduction, Quota Trading and Productivity: The Case of a Fishery. Australian Journal of Agricultural and Resource Economics, Vol. 50, No. 2, pp. 189-206, June 2006. Available at SSRN: https://ssrn.com/abstract=913487 or http://dx.doi.org/10.1111/j.1467-8489.2006.00331.x

Kevin J. Fox (Contact Author)

UNSW Australia Business School, School of Economics ( email )

High Street
Sydney, NSW 2052
Australia
(02)9385-3320 (Phone)
(02)9313-6337 (Fax)

R. Quentin Grafton

Australian National University (ANU) - Centre for Resource and Environmental Studies (CRES) ( email )

Canberra, Australian Capital Territory 0200
Australia

HOME PAGE: http://cres.anu.edu.au/~qgrafton

Australian National University (ANU) - Crawford School of Public Policy

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

Tom Kompas

Australian National University (ANU) - Crawford School of Public Policy ( email )

7 Liversidge Street
Lennox Crossing
Canberra, Australian Capital Territory ACT 0200
Australia

Tuong Nhu Che

Government of the Commonwealth of Australia - Australian Bureau of Agricultural and Resource Economics (ABARE) ( email )

Canberra
Australia

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