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Productivity Change under an Individual Transferable Quota Management System

Author

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  • John B. Walden
  • James E. Kirkley
  • Rolf Färe
  • Philip Logan

Abstract

This study examines productivity change in the Mid-Atlantic surfclam and ocean quahog fishery, which has been managed since 1990 using Individual Transferable Quotas (ITQ). Productivity change is estimated through a Malmquist index from 1981--2008, capturing change before and after implementation of the quota system. We then decompose the index to examine changes in technical efficiency, scale efficiency, and technical change. Our findings indicate that the ITQ system has not sustained gains in vessel productivity. These results are thought to be driven by spatial changes in biomass and the inability to access more productive fishing grounds. Copyright 2012, Oxford University Press.

Suggested Citation

  • John B. Walden & James E. Kirkley & Rolf Färe & Philip Logan, 2012. "Productivity Change under an Individual Transferable Quota Management System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(4), pages 913-928.
  • Handle: RePEc:oup:ajagec:v:94:y:2012:i:4:p:913-928
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    File URL: http://hdl.handle.net/10.1093/ajae/aas025
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    References listed on IDEAS

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    1. Lewis, Tracy R. & Feenstra, Robert & Ware, Roger, 1989. "Eliminating price supports : A political economy perspective," Journal of Public Economics, Elsevier, vol. 40(2), pages 159-185, November.
    2. Bourgeon, Jean-Marc & Jayet, Pierre-Alain & Picard, Pierre, 1995. "An incentive approach to land set-aside programs," European Economic Review, Elsevier, vol. 39(8), pages 1487-1509, October.
    3. Robert G. Chambers, 1992. "On the Design of Agricultural Policy Mechanisms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(3), pages 646-654.
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    Cited by:

    1. Gabriel Natividad, 2016. "Quotas, Productivity, and Prices: The Case of Anchovy Fishing," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 25(1), pages 220-257, March.
    2. Torres, Marcelo de O. & Felthoven, Ronald G., 2014. "Productivity growth and product choice in catch share fisheries: The case of Alaska pollock," Marine Policy, Elsevier, vol. 50(PA), pages 280-289.
    3. Diekert , Florian & Lund , Kristen & Schweder, Tore, 2014. "From Open-Access to Individual Quotas: Disentangling the Effects of Policy Reform and Environmental Changes in the Norwegian Coastal Cod Fishery," Memorandum 07/2014, Oslo University, Department of Economics.
    4. Mamula, Aaron & Collier, Trevor, 2015. "Multifactor productivity, environmental change, and regulatory impacts in the U.S. West Coast groundfish trawl fishery, 1994–2013," Marine Policy, Elsevier, vol. 62(C), pages 326-336.
    5. Thunberg, Eric & Walden, John & Agar, Juan & Felthoven, Ron & Harley, Abigail & Kasperski, Stephen & Lee, Jean & Lee, Todd & Mamula, Aaron & Stephen, Jessica & Strelcheck, Andy, 2015. "Measuring changes in multi-factor productivity in U.S. catch share fisheries," Marine Policy, Elsevier, vol. 62(C), pages 294-301.
    6. Solís, Daniel & Agar, Juan J. & del Corral, Julio, 2015. "IFQs and total factor productivity changes: The case of the Gulf of Mexico red snapper fishery," Marine Policy, Elsevier, vol. 62(C), pages 347-357.
    7. Løvold Rødseth, Kenneth, 2017. "Productivity growth in urban freight transport: An index number approach," Transport Policy, Elsevier, vol. 56(C), pages 86-95.
    8. Walden, John B. & Kitts, Nolan, 2014. "Measuring fishery profitability: An index number approach," Marine Policy, Elsevier, vol. 43(C), pages 321-326.
    9. Pascoe, Sean & Hutton, Trevor & van Putten, Ingrid & Dennis, Darren & Skewes, Tim & Plagányi, Éva & Deng, Roy, 2013. "DEA-based predictors for estimating fleet size changes when modelling the introduction of rights-based management," European Journal of Operational Research, Elsevier, vol. 230(3), pages 681-687.
    10. Gillespie, Patrick R. & Breen, Ben, 2016. "Accounting for fishing vessel time allocation at sea when measuring efficiency," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236356, Agricultural Economics Society.
    11. Fissel, Benjamin E. & Felthoven, Ronald G. & Kasperski, Stephen & O’Donnell, Christopher, 2015. "Decomposing productivity and efficiency changes in the Alaska head and gut factory trawl fleet," Marine Policy, Elsevier, vol. 62(C), pages 337-346.
    12. Walden, John & Fissel, Ben & Squires, Dale & Vestergaard, Niels, 2015. "Productivity change in commercial fisheries: An introduction to the special issue," Marine Policy, Elsevier, vol. 62(C), pages 289-293.
    13. E. Grifell-Tatjé & C. Lovell, 2014. "Productivity, price recovery, capacity constraints and their financial consequences," Journal of Productivity Analysis, Springer, pages 3-17.
    14. 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.
    15. Pan, Minling & Walden, John, 2015. "Measuring Productivity in a Shared Stock Fishery: A Case Study of the Hawaii Longline Fishery," Marine Policy, Elsevier, vol. 62(C), pages 302-308.

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