Quota Trading and Profitability: Theoretical Models and Applications to Danish Fisheries
AbstractUsing Data Envelopment Analysis (DEA), we provide a framework to analyze the potential gains from quota trading. We compare the industry profit and structure before and after a free trade reallocation of production quotas. The effects of tradable production quotas depend on several technological and behavioral characteristics, including the ability to learn best practice (catch-up) and the ability to change the input and output composition (mix). To illustrate the usefulness of our approach, we analyze a dataset from the Danish fishery. We study the industry profit and structure under each of four sets of technological and behavioral characteristics.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Royal Veterinary and Agricultural University, Food and Resource Economic Institute in its series Unit of Economics Working papers with number 24180.
Date of creation: 2003
Date of revision:
Data Envelopment Analysis (DEA); Individual Transferable Quotas (ITQ); reallocation; technical efficiency; allocative efficiency; fishery; Agribusiness; C61; L51; Q22; Q28;
Find related papers by JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
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.:
- Peter Bogetoft & Dexiang Wang, 2005.
"Estimating the Potential Gains from Mergers,"
Journal of Productivity Analysis,
Springer, vol. 23(2), pages 145-171, 05.
- Pekka Korhonen & Mikko Syrjänen, 2004. "Resource Allocation Based on Efficiency Analysis," Management Science, INFORMS, vol. 50(8), pages 1134-1144, August.
- Runar Brännlund & Rolf Färe & Shawna Grosskopf, 1995. "Environmental regulation and profitability: An application to Swedish pulp and paper mills," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 6(1), pages 23-36, July.
- Bogetoft, Peter & Strange, Niels & Thorsen, Bo Jellesmark, 2001. "Efficiency and Merger Gains in The Danish Forestry Extension Service," Unit of Economics Working papers 24210, Royal Veterinary and Agricultural University, Food and Resource Economic Institute.
- Niels Christian Petersen, 1990. "Data Envelopment Analysis on a Relaxed Set of Assumptions," Management Science, INFORMS, vol. 36(3), pages 305-314, March.
- Peter Bogetoft & Jens Hougaard, 2003.
Journal of Productivity Analysis,
Springer, vol. 20(3), pages 243-271, November.
- Montgomery, W. David, 1972. "Markets in licenses and efficient pollution control programs," Journal of Economic Theory, Elsevier, vol. 5(3), pages 395-418, December.
- S Pascoe & JL Andersen & J-W de Wilde, 2001. "The impact of management regulation on the technical efficiency of vessels in the Dutch beam trawl fishery," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 28(2), pages 187-206, June.
- Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
- Chen, Wei & Kauffman, Dan & Taylor, Daniel B. & Peterson, Everett B., 2008. "Managing Flounder Openings for Maximum Revenue," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6193, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.