Property Rights in a Fishery: Regulatory Change and Firm Performance

A new method is introduced and applied to analyse changes in productivity of firms harvesting a natural capital stock. The index-number technique decomposes the contributions of output prices, variable input prices, fixed inputs and productivity to firm profits, adjusted for changes in the natural capital stock. An application of the method is given using micro-level data from a common-pool resource. The indexes provide a ready-made comparison of all firms to the most profitable firm per unit of resource stock. Benchmarking with the decompositions also allows firms and regulators to determine what components are contributing most to economic profits and improve overall industry performance.productivity,profits,natural capital,index numbers

TECHNICAL PROGRESS IN THE SETE TRAWL FISHERY, 1985-1999

Fisheries throughout the world have long been subject to overfishing and excess capacity, which has generated substantial and increasing concern about biological and economic performance ramifications. These problems in part stem from substantial investment in technical improvements to boats and equipment in fishing fleets. Such technical change exacerbates the extent of excess fishing capacity, as well as low returns to fishing effort and investment due to catch limitations from both regulatory constraints and overfished stocks. However, economists have not yet attempted to quantify the extent or effects of technical change in fisheries. In this paper we use detailed data on innovation patterns for 19 vessels in the Sete trawl fleet of Southern France to evaluate the contributions of embodied and disembodied technical change to catch rates. We find that embodied technical change enhanced productivity by approximately 1 percent per year between 1985-99, but that external (disembodied) events counteracted this by causing a net output decline of about 3 percent per year. Neither efficiency nor output composition changes appear to have had a substantive effect on observed performance levels.Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy,

A general equilibrium model for Atlantic herring (Clupea harengus) with ecosystem considerations

A framework is presented for assessing the economic ramifications of ecosystem-based management decisions, with attention focused on Atlantic herring (Clupea harengus) in New England. The Atlantic herring has often been referred to as the most important fish in the northeastern United States because it is a filter-feeder, is believed to improve water quality, and is very important to the health, growth, and abundance of major gamefish, marine mammals, seabirds, and several species of fish. Although many approaches for examining the potential economic ramifications of ecosystem-based management are possible, attention is focused on one method that can be used given existing data. A static, deterministic input/output (I/O) optimization (IOLP, input/output linear programming) model is developed that breaks out the impact of different decisions on herring allocation on the 2006 New England regional economy of Maine, New Hampshire, Massachusetts, and Rhode Island. The IOLP model is a promising approach for informing policy-makers of the economic implications of various allocation choices. The framework is also flexible enough to allow further disaggregation of the small model presented to include additional fishing and non-fishing sectors