Assessing Short-Run and Medium-Run Fishing Capacity at the Industry
Level and its Reallocation
Reducing harvesting capacity in fisheries is of international importance.
In 1999, member nations of the United Nations Food and Agricultural Organization
(FAO) agreed to an International Plan of Action to reduce fishing capacity.
Two initial concerns were the acceptance of a workable definition of capacity
and the development of methods to calculate capacity. FAO subsequently
offered several definitions of capacity. A general definition of capacity
is the output level over a given time period that a fishing fleet could
expect to catch if the variable inputs are utilized under normal operating
conditions given resource levels, technology, and other constraints. Concurrently,
however, FAO and representatives of the member nations expressed concerns
about reducing capacity at the national level (i.e., a reallocation of
capital, labor, and other inputs) and with respect to both the short and
long-run. In this paper, we present a possible approach for determining
capacity at a more aggregate level than the vessel (e.g., fishery or region)
with respect to the short and intermediate-run, and the allocation of
fixed and variable inputs across different fisheries and regions. We extend
one approach to measuring capacity of a firm to the case of an industry.
Based on extensions of this specification, existing capacities are no
longer fixed, but may be scaled up or down at will subject to a constant
returns to scale technology. This allows for exploring plausible medium-term
technological configurations at the industry level. (Click
here for paper)
Source: Fare, R., Grosskopf, S., Kerstens, K., Kirkley, J., and D. Squires.
2000. “Assessing short-run and medium-run fishing capacity at the
industry level and its reallocation.” In: Proceedings of the
Tenth Biennial Conference of the International Institute of Fisheries
Economics & Trade:
Macrobehavior and Macroresults, July 10-14, 2000, Corvallis, Oregon. Corvallis,
OR: International Institute for Fisheries Economics and Trade (IIFET).
For more information, please contact: Dale.Squires@noaa.gov