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Capacity and Capacity Utilization in Common-pool Resource Industries

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Author Info
James Kirkley
Catherine Morrison Paul ()
Dale Squires

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Abstract

Excess capacity poses one of the most pressingproblems that arise when industries exploitcommon-pool natural resources. It entailsover-investment in the capital stock andexcessive use of variable inputs, and placesadditional exploitation pressures on theresource stocks. Confusion persists over theappropriate definition and measurement ofcapacity and capacity utilization for theseindustries. But understanding capacity and itsmeasurement is necessary to properly design acapacity management program. This paperaddresses these issues by overviewing theconceptual and theoretical bases for capacityand capacity utilization measurement,identifying specific problems for common-poolresources, outlining alternative methodologiesfor their measurement, and illustrating the useof these definitions and measurement methods ina fisheries case study. Copyright Kluwer Academic Publishers 2002

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File URL: http://hdl.handle.net/10.1023/A:1015511232039
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Publisher Info
Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 22 (2002)
Issue (Month): 1 (June)
Pages: 71-97
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Handle: RePEc:kap:enreec:v:22:y:2002:i:1:p:71-97

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Web page: http://www.springerlink.com/link.asp?id=100263

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Related research
Keywords: capacity; capacity utilization; common-pool resources; efficiency; fisheries;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Morrison, Catherine J., 1986. "Productivity measurement with non-static expectations and varying capacity utilization : An integrated approach," Journal of Econometrics, Elsevier, vol. 33(1-2), pages 51-74. [Downloadable!] (restricted)
    Other versions:
  2. Morrison, Catherine J, 1985. "On the Economic Interpretation and Measurement of Optimal Capacity Utilization with Anticipatory Expectations," Review of Economic Studies, Blackwell Publishing, vol. 52(2), pages 295-310, April. [Downloadable!] (restricted)
    Other versions:
  3. Weninger, Quinn & Just, Richard, 2002. "An Analysis of Transition From Limited Entry to Transferable Quota: Non-Marshallian Principles for Fisheries Management," Staff General Research Papers 5225, Iowa State University, Department of Economics.
  4. Segerson, Kathleen & Squires, Dale, 1993. "Capacity Utilization under Regulatory Constraints," The Review of Economics and Statistics, MIT Press, vol. 75(1), pages 76-85, February. [Downloadable!] (restricted)
  5. Paul, Catherine J. Morrison, 2000. "Thoughts On Productivity, Efficiency And Capacity Utilization Measurement For Fisheries," Working Papers 11963, University of California, Davis, Department of Agricultural and Resource Economics. [Downloadable!]
  6. Segerson, Kathleen & Squires, Dale, 1990. "On the measurement of economic capacity utilization for multi-product industries," Journal of Econometrics, Elsevier, vol. 44(3), pages 347-361, June. [Downloadable!] (restricted)
  7. Lawrence R. Klein, 1958. "The Measurement of Capacity," Cowles Foundation Discussion Papers 49, Cowles Foundation, Yale University. [Downloadable!]
  8. Lawrence R. Klein & Virginia Long, 1973. "Capacity Utilization: Concept, Measurement, and Recent Estimates," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 4(1973-3), pages 743-764. [Downloadable!]
  9. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
  10. Nelson, Randy A, 1989. "On the Measurement of Capacity Utilization," Journal of Industrial Economics, Blackwell Publishing, vol. 37(3), pages 273-86, March. [Downloadable!] (restricted)
  11. Taylor, Timothy G. & Prochaska, Fred J., 1985. "Fishing Power Functions in Aggregate Bioeconomic Models," Marine Resource Economics, Marine Resources Foundation, vol. 2(1). [Downloadable!]
  12. Dupont, Diane P., 1990. "Rent dissipation in restricted access fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 19(1), pages 26-44, July. [Downloadable!] (restricted)
  13. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June. [Downloadable!] (restricted)
  14. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July. [Downloadable!] (restricted)
  15. Felthoven, Ronald, 2000. "Measuring Fishing Capacity: An Application To In North Pacific Groundfish Fisheries," 2000 Annual meeting, July 30-August 2, Tampa, FL 21815, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  16. Fare, Rolf & Grosskopf, Shawna & Kokkelenberg, Edward C, 1989. "Measuring Plant Capacity, Utilization and Technical Change: A Nonparametric Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(3), pages 655-66, August. [Downloadable!] (restricted)
  17. Berndt, Ernst R & Morrison, Catherine J, 1981. "Capacity Utilization Measures: Underlying Economic Theory and an Alternative Approach," American Economic Review, American Economic Association, vol. 71(2), pages 48-52, May. [Downloadable!] (restricted)
  18. Coelli, T.J., 1995. "Recent Developments In Frontier Modelling And Efficiency Measurement," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(03), December. [Downloadable!]
  19. Morrison, Catherine J, 1985. "Primal and Dual Capacity Utilization: An Application to Productivity Measurement in the U.S. Automobile Industry," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(4), pages 312-24, October.
  20. Dupont, Diane P. & Grafton, R. Quentin & Kirkley, James & Squires, Dale, 2002. "Capacity utilization measures and excess capacity in multi-product privatized fisheries," Resource and Energy Economics, Elsevier, vol. 24(3), pages 193-210, June. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Kevin J. Fox & R. Quentin Grafton & Tom Kompas & Tuong Nhu Che, 2003. "Capacity Reduction and Productivity: The Case of Fishery," Economics and Environment Network Working Papers 0303, Australian National University, Economics and Environment Network. [Downloadable!]
  2. Richard Carson & Clive Granger & Jeremy Jackson & Wolfram Schlenker, 2009. "Fisheries Management Under Cyclical Population Dynamics," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 42(3), pages 379-410, March. [Downloadable!] (restricted)
    Other versions:
  3. Quinn Weninger, 2008. "Economic Benefits of Management Reform in the Gulf of Mexico Grouper Fishery: A Semi-parametric Analysis," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 41(4), pages 479-497, December. [Downloadable!] (restricted)
    Other versions:
  4. Felthoven, Ronald G. & Horrace, William C. & Schnier, Kurt E., 2006. "Estimating Heterogeneous Primal Capacity and Capacity Utilization Measures in a Multi-Species Fishery," 2006 Annual meeting, July 23-26, Long Beach, CA 21276, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  5. Vestergaard, Niels & Squires, Dale & Kerstens, Kristiaan, 2005. "Methodological Reflections on the Short-Run Johansen Industry Model in Relation to Capacity Management," Marine Resource Economics, Marine Resources Foundation, vol. 20(4). [Downloadable!]
  6. Greenville, Jared & MacAulay, T. Gordon, 2006. "Marine Protected Areas in Fisheries Management," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25532, International Association of Agricultural Economists. [Downloadable!]
  7. Greenville, Jared & MacAulay, Gordon, 2006. "A Bioeconomic Analysis of Protected Area use in Fisheries Management," 2006 Annual meeting, July 23-26, Long Beach, CA 21469, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  8. Kevin J. Fox & R. Quentin Grafton & Tom Kompas & Tuong Nhu Che, 2003. "Productivity and capacity reduction: the case of a fishery," International and Development Economics Working Papers idec03-2, International and Development Economics. [Downloadable!]
  9. Alfonso Flores-Lagunes & William C. Horrace & Kurt E. Schnier, 2006. "Identifying Technically Efficient Fishing Vessels: A Non-Empty, Minimal Subset Approach," Center for Policy Research Working Papers 78, Center for Policy Research, Maxwell School, Syracuse University. [Downloadable!]
    Other versions:
  10. Pascoe, Sean, 2007. "Capacity Analysis and Fisheries Policy: Theory versus Practice," Marine Resource Economics, Marine Resources Foundation, vol. 22(1). [Downloadable!]
  11. Jean-François Ruhashyankiko, 2005. "Why Do Some Countries Manage to Extract Growth from Foreign Aid?," IMF Working Papers 05/53, International Monetary Fund. [Downloadable!]
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