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Technical efficiency in the Swedish trawl fishery for Norway lobster

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  • 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.

Suggested Citation

  • Eggert, Håkan, 2001. "Technical efficiency in the Swedish trawl fishery for Norway lobster," Working Papers in Economics 53, University of Gothenburg, Department of Economics.
  • Handle: RePEc:hhs:gunwpe:0053
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    File URL: http://hdl.handle.net/2077/2878
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    References listed on IDEAS

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    Cited by:

    1. Standal, Dag & Annie Sønvisen, Signe, 2015. "Gear liberalization in the Northeast Arctic cod fisheries – Implications for sustainability, efficiency and legitimacy," Marine Policy, Elsevier, vol. 53(C), pages 141-148.
    2. 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.
    3. Álvarez, Antonio, 2003. "Econometric Estimation of Fishing Production Functions when Stocks is Unknown: A Monte Carlo Analysis," Efficiency Series Papers 2003/09, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    4. Håkan Eggert & Ragnar Tveteras, 2004. "Stochastic Production and Heterogeneous Risk Preferences: Commercial Fishers' Gear Choices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 199-212.
    5. Álvarez, Antonio, 2001. "Some Issues on the Estimation of Technical Efficiency in Fisheries," Efficiency Series Papers 2001/02, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    6. 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.
    7. Niels Vestergaard & Dale Squires & Frank Jensen & Jesper L. Andersen, 2002. "Technical Efficiency of the Danish Trawl fleet: Are the Industrial Vessels Better than Others?," Working Papers 32/02, University of Southern Denmark, Department of Sociology, Environmental and Business Economics.
    8. 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.

    More about this item

    Keywords

    stochastic production frontier; Swedish fisheries; technical efficiency;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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