On Efficiency of Individual Transferable Quotas (ITQs) through Reduction of Vessels

Keisaku Higashida and Yasuhiro Takarada

No 68, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: This paper theoretically examines whether an individual transferable quotas (ITQs) regime can achieve the long-run efficiency through the reduction of vessel numbers. Assuming the existence of two types of vessels in terms of their scales, we consider not only quota transactions but also the exit of fishers. Changes in vessel sizes of incumbent fishers are also taken into consideration. We find that when large-scale vessels are more efficient than small-scale vessels, the long-run efficiency is achieved only with an ITQ regime. However, when small-scale vessels are more efficient than large-scale vessels, the long-run efficiency is not achieved; the number of vessels becomes too few compared to when the total harvesting cost is minimized.

Keywords: Efficient fishery; fishery management; individual transferable quotas; quota transaction; vessel scale. (search for similar items in EconPapers)
JEL-codes: Q22 Q28 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2011-01, Revised 2011-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:kgu:wpaper:68

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