Technical efficiency in the Swedish trawl fishery for Norway lobster
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.
|Date of creation:||05 Sep 2001|
|Contact details of provider:|| 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/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dupont, Diane P., 1990. "Rent dissipation in restricted access fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 19(1), pages 26-44, July.
- 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.
- 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.
- 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.
- Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-1248, September.
- 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.
- 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 325-332.
- 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.
- 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 435-444, June.
- 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.