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A short-run Johansen industry model for common-pool resources: planning a fishery's industrial capacity to curb overfishing

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  • Kristiaan Kerstens
  • Niels Vestergaard
  • Dale Squires

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. Copyright 2006, Oxford University Press.

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Bibliographic Info

Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 33 (2006)
Issue (Month): 3 (September)
Pages: 361-389

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Handle: RePEc:oup:erevae:v:33:y:2006:i:3:p:361-389

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Cited by:
  1. MANAGI Shunsuke, 2009. "Capacity Output and Possibility of Cost Reduction: Fishery management in Japan," Discussion papers 09040, Research Institute of Economy, Trade and Industry (RIETI).
  2. Kerstens, Kristiaan & Bouye, Ahmed Moulaye Hachem & Van de Woestyne, Ignace & Vestergaard, Niels, 2008. "Optimal capacity utilization and reallocation in a German bank branch network: Exploring some strategic scenarios," Working Papers 2008/59, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
  3. Kjærsgaard, Jens, 2010. "Quest for appropriate overcapacity in the fisheries industry," Socio-Economic Planning Sciences, Elsevier, vol. 44(3), pages 141-150, September.

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