Adjusting technical efficiency to reflect discarding: The case of the U.S. Georges Bank multi-species otter trawl fishery

Färe, Rolf; Kirkley, James E.; Walden, John

doi:10.1016/j.fishres.2005.12.014

Cited by 26 publications

(18 citation statements)

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“…16 Except for the resurgence of the use of the deterministic frontier (i.e., parameters corresponding to a specified frontier function are estimated via mathematical programming but the estimates are adjusted by corrected ordinary least squares), DEA and the stochastic frontier appear to be the two primary approaches used to estimate and assess technical efficiency and capacity, with DEA being the primary approach used to estimate capacity (F@re et al, 1993;Kirkley et al, 2002;Felthoven and Morrison-Paul, 2004;F@re et al, 2006). In the next section, we introduce the various approaches and methods but primarily focus on the use of DEA, the stochastic frontier, and the modified deterministic frontier.…”

Section: Methods For Estimating Technical Efficiency and Capacitymentioning

confidence: 99%

Estimating Fishing Vessel Capacity: A Comparison of Nonparametric Frontier Approaches

Walden

Tomberlin

2010

Marine Resource Economics

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ii Executive SummaryFishery managers throughout the world are concerned about finding ways to reduce undesirable and nonmarketable bycatch (i.e., bycatch discards) and excess harvesting capacity. Both of these issues are associated with economic waste in the form of unnecessarily high production costs, potential reductions in future harvest levels, or unnecessary utilization of factors of production to discard undesired catch. The Food and Agriculture Organization (FAO) of the United Nations, the National Marine Fisheries Service (NOAA Fisheries), and various member nations of the FAO adopted a voluntary code entitled The Code of Conduct for Responsible Fisheries in 1995, which promotes the reduction in bycatch discards and excess capacity in commercial fisheries.Extensive progress has been made towards reducing bycatch of undesired species through new regulations and modifications to traditional fishing gear. Substantial progress has also been made towards assessing and reducing harvesting capacity in fisheries. Unfortunately, these efforts have been made in isolation. That is, efforts to reduce bycatch have not concurrently considered the ramifications of bycatch reduction on harvesting capacity, and efforts to assess capacity have not incorporated how capacity would vary with reductions in undesirable outputs.Without proper attention to the relationship between reducing undesirable outputs and the maximizing desirable outputs, it is quite likely that the estimates of capacity used to help develop capacity reduction programs may be subject to error.We examine four approaches for estimating and assessing both capacity and technical efficiency of production activities that involve the production of both desirable and undesirable outputs. Although we primarily focus on estimating capacity while explicitly recognizing the need to allow desirable outputs to expand and undesirable outputs to contract, we also consider several other options for changing the direction (expansion and contraction) of desirable and undesirable outputs.All four methods considered in the report are based on data envelopment analysis ( DEA), which is a mathematical programming approach for estimating technical efficiency (TE) and capacity output. We first examine the more traditional DEA approach for estimating capacity; this is an output-oriented approach, which only takes desirable outputs into account and ignores undesirable outputs. We then introduce and summarize (2) a directional distance function approach, which permits desirable outputs to increase and undesirable outputs to decrease by the same proportion. Next, (3) a hyperbolic approach is then presented and discussed; this approach allows desirable outputs to expand by a scalar and undesirable outputs to contract by the inverse of the scalar. Last, we present (4) iii the approach of Seiford and Zhu (2002), which is an output-oriented approach but allows desirable outputs to increase and undesirable outputs to decrease. We then apply the various models to a data sample from fis...

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Section: Methods For Estimating Technical Efficiency and Capacitymentioning

confidence: 99%

Estimating Fishing Vessel Capacity: A Comparison of Nonparametric Frontier Approaches

Walden

Tomberlin

2010

Marine Resource Economics

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“…This means that the maximal expansion of good outputs is doubling the observed amount (see Färe et al 2006).…”

Section: Non-parametric Frontier Technology and Distance Functionsmentioning

confidence: 98%

“…Assume that there are N production units. Then, imposing variable returns to scale and following Färe et al (2006), the empirical technology is described by the following system of inequalities (see also Jeon and Sickles 2004, p. 587):…”

Section: Non-parametric Frontier Technology and Distance Functionsmentioning

confidence: 99%

“…For instance, the Lee et al (2002) study shows how the average shadow prices of bads at the frontier are lower than those obtained with traditional methods under the assumption of full efficiency. In Färe et al (2006) the directional distance function approach is applied relative to a technology assuming weak disposal of bads and null-jointness of goods and bads to consider unwanted discards in the Georges Bank otter trawl fishery. The present analysis basically applies this methodological approach of Färe et al (2006) to Danish fisheries to obtain a conservative estimate of substitution possibilities away from cod, while adding two innovations.…”

Section: Introductionmentioning

confidence: 99%

“…In Färe et al (2006) the directional distance function approach is applied relative to a technology assuming weak disposal of bads and null-jointness of goods and bads to consider unwanted discards in the Georges Bank otter trawl fishery. The present analysis basically applies this methodological approach of Färe et al (2006) to Danish fisheries to obtain a conservative estimate of substitution possibilities away from cod, while adding two innovations. First, to explore the alternatives for the fishing vessels a different efficiency measure is introduced that accounts for the potential underutilization of invested capital.…”

Section: Introductionmentioning

confidence: 99%

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The opportunities for social science research change with developments in policy and social science, conservation biology, and ecological theory; population dynamics, quantitative methods, laws and current management or governance practices; industry operating procedures, social values, institutional change, and funding. This paper identifies opportunities for future social science research, and economics in particular, due to developments in economic theory and the shifting concerns of society. The opportunities lie in addressing the growing societal concerns over the environment, biodiversity, and sustainable resource use and bioeconomic modeling that begins to match advancements in population dynamics and ecology. The opportunities address multiple species, bioeconomic modeling that accounts for space, the heterogeneity of fishing industries and the need to address distributional issues and trade-offs. Future social science research will relate to impacts with different policies, incentives, and property and use rights, uncertainty, international management of transboundary stocks of fish and biodiversity conservation (whales, sea turtles, sea birds, dolphins, etc.), marine reserves, technical change, the shift in orientation from management of fisheries as a commercial fishery and a simple optimal harvest strategy to ecosystem management. Important ideas for the future include actual fisheries management of Pareto-improvements from a second-best situation rather than normative concerns that dominate most theoretical fisheries economics research.

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Adjusting technical efficiency to reflect discarding: The case of the U.S. Georges Bank multi-species otter trawl fishery

Cited by 26 publications

References 10 publications

Estimating Fishing Vessel Capacity: A Comparison of Nonparametric Frontier Approaches

Estimating Fishing Vessel Capacity: A Comparison of Nonparametric Frontier Approaches

Ecological Benchmarking to Explore Alternative Fishing Schemes to Protect Endangered Species by Substitution: The Danish Demersal Fishery in the North Sea

Opportunities in Social Science Research

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