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Technical Efficiency Effects of Input Controls: Evidence from Australia’s Banana Prawn Fishery

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Author Info
Tom Kompas () (Australian Bureau of Agricultural and Resource Economics)
Tuong Nhu Che () (Australian Bureau of Agricultural and Resource Economics Canberra, ACT)
R. Quentin Grafton () (The Australian National University)

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Abstract

The 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.

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File URL: http://www.eaber.org/intranet/documents/40/585/APSEG_Kompas_03_2.pdf
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Publisher Info
Paper provided by East Asian Bureau of Economic Research in its series Microeconomics Working Papers with number 585.

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Length: 32 pages
Date of creation: Mar 2003
Date of revision:
Handle: RePEc:eab:microe:585

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Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
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Related research
Keywords: input controls; efficiency; fishery;

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Find related papers by JEL classification:
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

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. Alam, Mohammad Ferdous & Ishak, Haji Omar & Squires, Dale, 2002. "Sustainable Fisheries Development in the Tropics: Trawlers and Licence Limitation in Malaysia," Applied Economics, Taylor and Francis Journals, vol. 34(3), pages 325-37, February. [Downloadable!] (restricted)
  2. 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. [Downloadable!] (restricted)
  3. Grafton, R Quentin & Squires, Dale & Fox, Kevin J, 2000. "Private Property and Economic Efficiency: A Study of a Common-Pool Resource," Journal of Law & Economics, University of Chicago Press, vol. 43(2), pages 679-713, October.
  4. 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. [Downloadable!] (restricted)
  5. R. Quentin Grafton & Dale Squires & James E. Kirkley, 1996. "Private Property Rights And Crises In World Fisheries: Turning The Tide?," Contemporary Economic Policy, Western Economic Association International, vol. 14(4), pages 90-99, October. [Downloadable!] (restricted)
  6. 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.
  7. 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. [Downloadable!]
  8. 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 and Francis Journals, vol. 35(1), pages 63-77, January. [Downloadable!] (restricted)
  9. 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)
  10. 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)
  11. Sean Pascoe & Catherine Robinson, 1998. "Input Controls, Input Substitution and Profit Maximisation in the English Channel Beam Trawl Fishery," Journal of Agricultural Economics, Blackwell Publishing, vol. 49(1), pages 16-33. [Downloadable!] (restricted)
  12. 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. [Downloadable!] (restricted)
  13. 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. [Downloadable!] (restricted)
  14. 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. [Downloadable!] (restricted)
  15. 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.
  16. Pascoe, Sean & Coglan, Louisa, 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, American Agricultural Economics Association, vol. 84(3), pages 585-97, August. [Downloadable!] (restricted)
  17. Coelli, Tim & Battese, George, 1996. "Identification Of Factors Which Influence The Technical Inefficiency Of Indian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(02), August. [Downloadable!]
  18. Peter Schmidt, 1985. "Frontier production functions," Econometric Reviews, Taylor and Francis Journals, vol. 4(2), pages 289-328. [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. 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. [Downloadable!]
  2. Nancy Y. C. Kong & Jose Tongzon, 2006. "Estimating total factor productivity growth in Singapore at sectoral level using data envelopment analysis," Applied Economics, Taylor and Francis Journals, vol. 38(19), pages 2299-2314, October. [Downloadable!] (restricted)
  3. 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. [Downloadable!]
  4. 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. [Downloadable!]
    Other versions:
  5. 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!]
  6. 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. [Downloadable!]
  7. 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. [Downloadable!]
  8. R. Quentin Grafton & Tom Kompas & Richard McLoughlin & Nick Rayns, 2006. "Benchmarking for Fisheries Governance," Economics and Environment Network Working Papers 0608, Australian National University, Economics and Environment Network. [Downloadable!]
  9. Song, Ligang & Sheng, Yu, 2008. "The Impact of Reform on Economic Growth in China: A Principal Component Analysis," Working Papers RP2008/12, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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