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Technical efficiency in the Swedish trawl fishery for Norway lobster

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Author Info

  • Eggert, Håkan

    () (Department of Economics, School of Economics and Commercial Law, Göteborg University)

Abstract

Reducing fleet capacity in European fisheries is an important objective of the European Union’s Common Fisheries Policy. The success of such programmes depends both on the variation and the level of efficiency within the fishing fleets. If vessels with significantly lower than average efficiency levels are decommissioned, the actual reduction in fishing capacity will be less than expected. Further, if the remaining vessels are not operating at an efficient level after a decommissioning program, future improvement in efficiency may even further offset the effects of the decommissioning program. This paper examines the level and determinants of technical efficiency for a sample of Swedish demersal trawlers, which mainly target Norway lobster but also shrimp and demersal fish, in 1995. The data on per-trip gross revenues, fishing effort, gear choice, month of fishing and vessel attributes are analyzed using a translog stochastic production frontier, including a model for vessel-specific technical inefficiencies. Output elasticities and returns to scale are also examined. The technical inefficiency effects are found to be highly significant in explaining the levels and variation in vessel revenues. The mean efficiency for the sample vessels is estimated to be 66%. The inefficiency model indicates that efficiency decreases with total annual effort, and the same applies with vessel size in Gross Registered Tonnage. Further, it is found that older vessels are less efficient.

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File URL: http://hdl.handle.net/2077/2878
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 53.

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Length: 19 pages
Date of creation: 05 Sep 2001
Date of revision:
Handle: RePEc:hhs:gunwpe:0053

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Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Keywords: stochastic production frontier; Swedish fisheries; technical efficiency;

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References

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  1. Eggert, Hakan & Ulmestrand, Mats, 1999. "A Bioeconomic Analysis Of The Swedish Fishery For Norway Lobster (Nephrops Norvegicus)," Marine Resource Economics, Marine Resources Foundation, vol. 14(3).
  2. 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.
  3. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
  4. Dupont, Diane P., 1990. "Rent dissipation in restricted access fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 19(1), pages 26-44, July.
  5. 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.
  6. Pitt, Mark M. & Lee, Lung-Fei, 1981. "The measurement and sources of technical inefficiency in the Indonesian weaving industry," Journal of Development Economics, Elsevier, vol. 9(1), pages 43-64, August.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
  11. Campbell, H. F. & Hand, A. J., 1998. "Joint ventures and technology transfer: the Solomon Islands pole-and-line fishery," Journal of Development Economics, Elsevier, vol. 57(2), pages 421-442.
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Cited by:
  1. Eggert, Håkan & Tveterås, Ragnar, 2001. "Stochastic Production and Heterogeneous Risk Preferences: Commercial Fishers’ Gear Choices," Working Papers in Economics 54, University of Gothenburg, Department of Economics.
  2. Lokina, Razack B., 2008. "Technical Efficiency and the Role of Skipper Skill in Artisanal Lake Victoria Fisheries," Discussion Papers dp-08-13-efd, Resources For the Future.
  3. Sadjadi, S.J. & Omrani, H., 2008. "Data envelopment analysis with uncertain data: An application for Iranian electricity distribution companies," Energy Policy, Elsevier, vol. 36(11), pages 4247-4254, November.
  4. Andersen, Jesper Levring, 2005. "The Inclusion of Stocks in Multi-species Fisheries: The Case of Danish Seiners," Marine Resource Economics, Marine Resources Foundation, vol. 20(2).
  5. Azadeh, A. & Ghaderi, S.F. & Omrani, H. & Eivazy, H., 2009. "An integrated DEA-COLS-SFA algorithm for optimization and policy making of electricity distribution units," Energy Policy, Elsevier, vol. 37(7), pages 2605-2618, July.

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