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Productivity change and fleet restructuring after transition to individual transferable quota management

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  • Färe, Rolf
  • Grosskopf, Shawna
  • Walden, John

Abstract

Productivity change after transition to an individual transferable quota (ITQ) management system is driven by exit of some vessels, entry of other vessels, and changes in productivity of existing vessels. Generally, it is thought that an ITQ system boosts productivity due to the exit of less productive vessels. However, ITQ management systems also create an additional barrier to entry, and more productive vessels may not be able to enter the fishery. This study constructs the Färe–Primont index to measure productivity change for the Mid-Atlantic surf clam and ocean quahog fishery over a 32 year time period, which includes both pre and post-ITQ time periods. The index is then combined with a biomass change index to arrive at a measure of biomass adjusted productivity change. Results show that when biomass changes are considered, positive productivity gains occurred throughout the time period. Further examination of contributions from entering and survivor vessels show that entering vessels had little impact on aggregate productivity, but on an individual basis, they eventually were equal in productivity to survivor vessels.

Suggested Citation

  • Färe, Rolf & Grosskopf, Shawna & Walden, John, 2015. "Productivity change and fleet restructuring after transition to individual transferable quota management," Marine Policy, Elsevier, vol. 62(C), pages 318-325.
    • Handle: RePEc:eee:marpol:v:62:y:2015:i:c:p:318-325
    DOI: 10.1016/j.marpol.2015.05.015
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    1. Briec, Walter & Kerstens, Kristiaan & Prior, Diego & Van de Woestyne, Ignace, 2018. "Testing general and special Färe-Primont indices: A proposal for public and private sector synthetic indices of European regional expenditures and tourism," European Journal of Operational Research, Elsevier, vol. 271(2), pages 756-768.
    2. Stefano Mainardi, 2018. "Fishing vessel efficiency, skipper skills and hake pricetransmission in a small island economy," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 99(3-4), pages 215-251.
    3. Viet Nguyen, Thanh & Simioni, Michel & Le Van, Dao, 2019. "Assessment of TFP change at provincial level in Vietnam: New evidence using Färe–Primont productivity index," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 329-345.
    4. María Molinos-Senante & Alexandros Maziotis & Ramon Sala-Garrido, 2017. "Assessment of the Total Factor Productivity Change in the English and Welsh Water Industry: a Färe-Primont Productivity Index Approach," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(8), pages 2389-2405, June.

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