Technical Efficiency Effects of Input Controls: Evidence from Australia's Banana Prawn Fishery
AbstractThe paper provides the first ex-post estimates of the effects on technical efficiency of input controls in a fishery. Using individual vessel data from the northern prawn fishery of Australia for the years 1990–1996 and 1994–2000, a stochastic production frontier is estimated to analyse the efficiency impacts of input controls on engine and vessel size. The results indicate that technical efficiency is increasing in a measure of vessel size and engine capacity that was controlled by the regulator from 1985 to 2001, and decreasing in an unregulated input, gear headrope length. The study shows that fishers have substituted from regulated to unregulated inputs over the period 1990-2000 and technical efficiency has declined coincident with increasing restrictions on vessel size and engine capacity. The decline in technical efficiency indicates that the goal of the regulator to increase economic efficiency has not been realised.
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 Australian National University, Economics and Environment Network in its series Economics and Environment Network Working Papers with number 0304.
Length: 30 pages
Date of creation: Jul 2003
Date of revision:
Contact details of provider:
Web page: http://een.anu.edu.au/
input controls; efficiency; fishery;
Other versions of this item:
- Tom Kompas & Tuong Nhu Che & R. Quentin Grafton, 2004. "Technical efficiency effects of input controls: evidence from Australia's banana prawn fishery," Applied Economics, Taylor & Francis Journals, vol. 36(15), pages 1631-1641.
- Tom Kompas & Tuong Nhu Che & R. Quentin Grafton, 2003. "Technical efficiency effects of input controls: evidence from Australia's banana prawn fishery," International and Development Economics Working Papers idec03-3, International and Development Economics.
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
This paper has been announced in the following NEP Reports:
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.:
- Schmidt, Peter & Knox Lovell, C. A., 1979. "Estimating technical and allocative inefficiency relative to stochastic production and cost frontiers," Journal of Econometrics, Elsevier, vol. 9(3), pages 343-366, February.
- Sean Pascoe & Catherine Robinson, 1998. "Input Controls, Input Substitution and Profit Maximisation in the English Channel Beam Trawl Fishery," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(1), pages 16-33.
- 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.
- Sean Pascoe & Louisa Coglan, 2002. "The Contribution of Unmeasurable Inputs to Fisheries Production: An Analysis of Technical Efficiency of Fishing Vessels in the English Channel," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 585-597.
- Ikerne Del Valle & Inmaculada Astorkiza & Kepa Astorkiza, 2003. "Fishing effort validation and substitution possibilities among components: the case study of the VIII division European anchovy fishery," Applied Economics, Taylor & Francis Journals, vol. 35(1), pages 63-77.
- Kumbhakar, Subal C & Ghosh, Soumendra & McGuckin, J Thomas, 1991. "A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms," Journal of Business & Economic Statistics, American Statistical Association, vol. 9(3), pages 279-86, July.
- Battese, George E. & Corra, Greg S., 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(03), December.
- Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-48, September.
- Forsund, Finn R. & Lovell, C. A. Knox & Schmidt, Peter, 1980. "A survey of frontier production functions and of their relationship to efficiency measurement," Journal of Econometrics, Elsevier, vol. 13(1), pages 5-25, May.
- Dupont, Diane P., 1990. "Rent dissipation in restricted access fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 19(1), pages 26-44, July.
- Ralph E. Townsend, 1990. "Entry Restrictions in the Fishery: A Survey of the Evidence," Land Economics, University of Wisconsin Press, vol. 66(4), pages 359-378.
- 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.
- Grafton, R Quentin & Squires, Dale & Fox, Kevin J, 2000.
"Private Property and Economic Efficiency: A Study of a Common-Pool Resource,"
Journal of Law and Economics,
University of Chicago Press, vol. 43(2), pages 679-713, October.
- Grafton, R.Q. & Squires, D. & Fox, K.J., 1998. "Private Property and Economic Efficiency: A Study of a Common-Pool Resource," Working Papers 9804e, University of Ottawa, Department of Economics.
- Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
- 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.
- Mohammad Ferdous Alam & Ishak Haji Omar & Dale Squires, 2002. "Sustainable fisheries development in the tropics: trawlers and licence limitation in Malaysia," Applied Economics, Taylor & Francis Journals, vol. 34(3), pages 325-337.
- Campbell, H. F., 1991. "Estimating the elasticity of substitution between restricted and unrestricted inputs in a regulated fishery: A probit approach," Journal of Environmental Economics and Management, Elsevier, vol. 20(3), pages 262-274, May.
- Kompas, Tom & Dichmont, Cathy M. & Punt, Andre E. & Deng, A. & Che, Tuong Nhu & Bishop, Janet & Gooday, Peter & Ye, Yemin & Zhou, S., 2010.
"Maximizing profits and conserving stocks in the Australian Northern Prawn Fishery,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 54(3), September.
- Tom Kompas & Cathy M. Dichmont & André E. Punt & A. Deng & Tuong Nhu Che & Janet Bishop & Peter Gooday & Yemin Ye & S. Zhou, 2010. "Maximizing profits and conserving stocks in the Australian Northern Prawn Fishery," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(3), pages 281-299, 07.
- Tom Kompas et. al., 2008. "Maximizing Profits and Conserving Stocks in the Australian Northern Prawn Fishery," International and Development Economics Working Papers idec08-04, International and Development Economics.
- Péreau, J.-C. & Doyen, L. & Little, L.R. & Thébaud, O., 2012.
"The triple bottom line: Meeting ecological, economic and social goals with individual transferable quotas,"
Journal of Environmental Economics and Management,
Elsevier, vol. 63(3), pages 419-434.
- Jean-Christophe PEREAU (GREThA, UMR CNRS 5113) & Luc DOYEN (CNRS-MNHN, CNRS, UMR 7204) & Rich LITTLE (CSIRO Marine and Atmospheric Research) & Olivier THEBAUD (CSIRO Marine and Atmospheric Research), 2011. "The triple bottom line: Meeting ecological, economic and social goals with Individual Transferable Quotas," Cahiers du GREThA 2011-01, Groupe de Recherche en Economie Théorique et Appliquée.
- R. Quentin Grafton & Ragnar Arnason & Trond Bjorndal & David Campbell & Harry F. Campbell & Colin W. Clark & Robin Connor & Diane P. Dupont & Rognvaldur Hannesson & Ray Hilborn & James E. Kirkley & To, 2005. "Incentive-based approaches to sustainable fisheries (now replaced by EEN0508)," Economics and Environment Network Working Papers 0501, Australian National University, Economics and Environment Network.
- New, Robert, 2012. "Management changes and vessel-level technical efficiency in the Eastern Tuna and Billfish Fishery: a stochastic frontier analysis," 2012 Conference (56th), February 7-10, 2012, Freemantle, Australia 124349, Australian Agricultural and Resource Economics Society.
- Skirtun, Maggie, 2013. "Decomposing the drivers of profibility in two key Commonwealth prawn fisheries," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152179, Australian Agricultural and Resource Economics Society.
- Ronald Felthoven & William Horrace & Kurt Schnier, 2009.
"Estimating heterogeneous capacity and capacity utilization in a multi-species fishery,"
Journal of Productivity Analysis,
Springer, vol. 32(3), pages 173-189, December.
- Ronald G. Felthovan & William C. Horrace & Kurt E. Schnier, 2006. "Estimating Heterogeneous Capacity and Capacity Utilization in a Multi-Species Fishery," Center for Policy Research Working Papers 86, Center for Policy Research, Maxwell School, Syracuse University.
- Quentin Grafton, R. & Kompas, Tom & McLoughlin, Richard & Rayns, Nick, 2007.
"Benchmarking for fisheries governance,"
Elsevier, vol. 31(4), pages 470-479, July.
- Md. Shakil Ahmed & M. Daud Ahmed, 2013. "Efficiency Variation of Manufacturing Firms: A Case Study of Seafood Processing Firms in Bangladesh," Review of Economics & Finance, Better Advances Press, Canada, vol. 3, pages 45-56, May.
- Tom Kompas & Tuong Nhu Che & R. Quentin Grafton, 2006.
"Fisheries Instrument Choice under Uncertainty,"
Economics and Environment Network Working Papers
0607, Australian National University, Economics and Environment Network.
- 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).
- Greenville, Jared W. & MacAulay, T. Gordon, 2006. "Protected Areas and the Management of Fisheries: An Institutional Perspective," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 139739, Australian Agricultural and Resource Economics Society.
- R. Quentin Grafton & Rognvaldur Hannesson & Bruce Shallard & Daryl Sykes & Joe Terry, 2006. "The Economics of Allocation in Tuna Regional Fisheries Management Organizations (RFMOS)," Economics and Environment Network Working Papers 0612, Australian National University, Economics and Environment Network.
- Nazneen K. Chowdhury & Tom Kompas & Kaliappa Kalirajan, 2010. "Impact of control measures in fisheries management: evidence from Bangladesh's industrial trawl fishery," Economics Bulletin, AccessEcon, vol. 30(1), pages 765-773.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jack Pezzey) The email address of this maintainer does not seem to be valid anymore. Please ask Jack Pezzey to update the entry or send us the correct address.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.