IDEAS home Printed from https://ideas.repec.org/a/oup/erevae/v34y2007i1p105-127.html
   My bibliography  Save this article

Gains from quota trade: theoretical models and an application to the Danish fishery

Author

Listed:
  • Jesper Levring Andersen
  • Peter Bogetoft

Abstract

We provide a framework for evaluating potential effects of introducing tradable quotas to a sector. The effects depend on the economies of scale and scope of the production technology, and on firms' ability and willingness to learn best practice methods (catching up) and to change their input and output composition (mix). To illustrate our approach, data from the Danish fishery are used to calculate the potential gains from introducing individually transferable fishing quotas. Data envelopment analysis is used to model the production technology. We find that pure reallocation is as important as pure learning, i.e. quota reallocation without catching-up is as valuable as learning best practice with fixed allocations. Copyright 2007, Oxford University Press.

Suggested Citation

  • Jesper Levring Andersen & Peter Bogetoft, 2007. "Gains from quota trade: theoretical models and an application to the Danish fishery," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 34(1), pages 105-127, March.
    • Handle: RePEc:oup:erevae:v:34:y:2007:i:1:p:105-127
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jens Kjærsgaard & Niels Vestergaard & Kristiaan Kerstens, 2009. "Ecological Benchmarking to Explore Alternative Fishing Schemes to Protect Endangered Species by Substitution: The Danish Demersal Fishery in the North Sea," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(4), pages 573-590, August.
    2. Bogetoft, Peter & Wittrup, Jesper, 2021. "Benefit-of-the-doubt approach to workload indicators: Simplifying the use of case weights in court evaluations," Omega, Elsevier, vol. 103(C).
    3. Ray, Subhash, 2016. "Cost efficiency in an Indian bank branch network: A centralized resource allocation model," Omega, Elsevier, vol. 65(C), pages 69-81.
    4. Nielsen, Rasmus, 2012. "Introducing individual transferable quotas on nitrogen in Danish fresh water aquaculture: Production and profitability gains," Ecological Economics, Elsevier, vol. 75(C), pages 83-90.
    5. 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.
    6. Alfons Oude Lansink & Arno Van Der Vlist, 2008. "Non‐Parametric Modelling of CO2 Emission Quota," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(3), pages 487-497, September.
    7. Ang, Frederic & Mortimer, Simon & Areal, Francisco & Tiffin, Richard, 2015. "The Impact of Dynamic Profit Maximization on Biodiversity: A Network DEA Application to UK Cereal Farms," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205857, Agricultural and Applied Economics Association.
    8. Heinz Ahn & Peter Bogetoft & Ana Lopes, 2019. "Measuring potential sub-unit efficiency to counter the aggregation bias in benchmarking," Journal of Business Economics, Springer, vol. 89(1), pages 53-77, February.
    9. Rasmus Nielsen & Jesper Levring Andersen & Peter Bogetoft, 2014. "Dynamic Reallocation of Marketable Nitrogen Emission Permits in Danish Freshwater Aquaculture," Marine Resource Economics, University of Chicago Press, vol. 29(3), pages 219-239.
    10. Troels Kristensen & Peter Bogetoft & Kjeld Pedersen, 2010. "Potential gains from hospital mergers in Denmark," Health Care Management Science, Springer, vol. 13(4), pages 334-345, December.
    11. Mette Asmild & Kurt Nielsen & Peter Bogetoft, 2012. "Are high labour costs destroying the competitiveness of Danish dairy farmers? Evidence from an international benchmarking analysis," MSAP Working Paper Series 01_2012, University of Copenhagen, Department of Food and Resource Economics.
    12. Keisaku Higashida & Yasuhiro Takarada, 2011. "On Efficiency of Individual Transferable Quotas (ITQs) through Reduction of Vessels," Discussion Paper Series 68, School of Economics, Kwansei Gakuin University, revised Jan 2011.
    13. Jie Wu & Jun-Fei Chu & Liang Liang, 2016. "Target setting and allocation of carbon emissions abatement based on DEA and closest target: an application to 20 APEC economies," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 279-296, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:erevae:v:34:y:2007:i:1:p:105-127. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.