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A Short-Run Johansen Industry Model For Common-Pool Resources: Planning A Fishery's Industrial Capacity To Curb Overfishing, Kristiaan Kerstens, Niels Vestergaard, Dale Squires
A Short-Run Johansen Industry Model For Common-Pool Resources: Planning A Fishery's Industrial Capacity To Curb Overfishing, Kristiaan Kerstens, Niels Vestergaard, Dale Squires
Niels Vestergaard
Current methods for assessing capacity and its utilisation in fisheries operate at the firm-level, but neglect industry capacity. Here, we introduce the Johansen-Färe measure of plant capacity of the firm into a multi-output, frontier-based version of the short-run Johansen industry model. The model determines firm capacity utilisation such that current industry outputs are maintained, while minimising the use of fixed inputs at industry level and assuming abundant variable inputs. Policy extensions relevant to combating overfishing include tightening quotas, seasonal closures, linking economic and plant capacity, decommissioning schemes and area closures, implementation issues and equity considerations. The application to the Danish …
Methodological Reflections On The Short-Run Johansen Industry Model In Relation To Capacity Management, Kristriaan Kerstens, Dale Squires, Niels Vestergaard
Methodological Reflections On The Short-Run Johansen Industry Model In Relation To Capacity Management, Kristriaan Kerstens, Dale Squires, Niels Vestergaard
Niels Vestergaard
The specification of a convex production technology is a potential issue in estimating firm-level Johansen plant capacity utilisation rates and their subsequent use in the short-run Johansen industry capacity model of the fishery. There are different plant capacity utilisation estimates with convex and nonconvex technologies. When entered as parameters in the short-run Johansen industry model, this leads to different distributions in the activity vectors. With non-convex technology, more vessels remain active in the fleet, and there is no longer an overestimation of the number of decommissioned vessels compared to the use of a convex technology. A second methodological reflection involves …