Capacity Output and Possibility of Cost Reduction: Fishery management in Japan

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Capacity Output and Possibility of Cost Reduction: Fishery management in Japan

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MANAGI Shunsuke

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Shunsuke Managi

Abstract

Japan's fishery harvest peaked in the late 1980s. Providing individually specific catch shares of the Total Allowable Catch (TAC) to each fisherman is the key to avoid the race for fish. Thus, in moving the idea into practice with the actual implementation of catch shares, it is curial to estimate the potential cost reduction in the industry. We find that the maximum level of production the fixed inputs in Japan are capable of supporting (i.e., capacity output) could be three times higher. Additionally, current overall fixed inputs could be reduced to one-tenth. Getting rid of these inefficient fishers would help lead to sustainable fishery management. These significant potential results are important for policy purpose. For example, about 450 billion yen (about 4.5 billion dollars) can be saved allocating individually specific catch shares to each fisherman.

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Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 09040.

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Length: 73 pages
Date of creation: Aug 2009
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Handle: RePEc:eti:dpaper:09040

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NEP-ALL-2009-08-16 (All new papers)

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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)
Daniel S. Holland, 2007. "Managing environmental impacts of fishing: input controls versus outcome-oriented approaches," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 7(2), pages 255-272, January. [Downloadable!] (restricted)
H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62, pages 124. [Downloadable!] (restricted)

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This page was last updated on 2009-12-2.

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