Gains from quota trade: theoretical models and an application to the Danish fishery

Jesper Levring Andersen; Peter Bogetoft

doi:10.1093/erae/jbm003

Gains from quota trade: theoretical models and an application to the Danish fishery

17 Citationer (Scopus)

Abstract

We provide a framework for evaluating potential effects of introducingtradable quotas to a sector. The effects depend on the economiesof scale and scope of the production technology, and on firms'ability and willingness to learn best practice methods (catchingup) and to change their input and output composition (mix).To illustrate our approach, data from the Danish fishery areused to calculate the potential gains from introducing individuallytransferable fishing quotas. Data envelopment analysis is usedto model the production technology. We find that pure reallocationis as important as pure learning, i.e. quota reallocation withoutcatching-up is as valuable as learning best practice with fixedallocations.

Originalsprog	Engelsk
Tidsskrift	European Review of Agricultural Economics
Vol/bind	34
Udgave nummer	1
Sider (fra-til)	105-127
Antal sider	23
ISSN	0165-1587
DOI	https://doi.org/10.1093/erae/jbm003
Status	Udgivet - 2007

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10.1093/erae/jbm003

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title = "Gains from quota trade: theoretical models and an application to the Danish fishery",

abstract = "We provide a framework for evaluating potential effects of introducing tradable quotas to a sector. The effects depend on the economies of scale and scope of the production technology, and on firms' ability and willingness to learn best practice methods (catching up) and to change their input and output composition (mix). To illustrate our approach, data from the Danish fishery are used to calculate the potential gains from introducing individually transferable fishing quotas. Data envelopment analysis is used to model the production technology. We find that pure reallocation is as important as pure learning, i.e. quota reallocation without catching-up is as valuable as learning best practice with fixed allocations. ",

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author = "Andersen, {Jesper Levring} and Peter Bogetoft",

year = "2007",

doi = "10.1093/erae/jbm003",

language = "English",

volume = "34",

pages = "105--127",

journal = "European Review of Agricultural Economics",

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T1 - Gains from quota trade

T2 - theoretical models and an application to the Danish fishery

AU - Andersen, Jesper Levring

AU - Bogetoft, Peter

PY - 2007

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N2 - We provide a framework for evaluating potential effects of introducing tradable quotas to a sector. The effects depend on the economies of scale and scope of the production technology, and on firms' ability and willingness to learn best practice methods (catching up) and to change their input and output composition (mix). To illustrate our approach, data from the Danish fishery are used to calculate the potential gains from introducing individually transferable fishing quotas. Data envelopment analysis is used to model the production technology. We find that pure reallocation is as important as pure learning, i.e. quota reallocation without catching-up is as valuable as learning best practice with fixed allocations.

AB - We provide a framework for evaluating potential effects of introducing tradable quotas to a sector. The effects depend on the economies of scale and scope of the production technology, and on firms' ability and willingness to learn best practice methods (catching up) and to change their input and output composition (mix). To illustrate our approach, data from the Danish fishery are used to calculate the potential gains from introducing individually transferable fishing quotas. Data envelopment analysis is used to model the production technology. We find that pure reallocation is as important as pure learning, i.e. quota reallocation without catching-up is as valuable as learning best practice with fixed allocations.

KW - Former LIFE faculty

KW - data envelopment analysis

KW - idividual transferable quotas

KW - reallocation

KW - technical efficiency

KW - allocative effeciency

KW - fishery

U2 - 10.1093/erae/jbm003

DO - 10.1093/erae/jbm003

M3 - Journal article

SN - 0165-1587

VL - 34

SP - 105

EP - 127

JO - European Review of Agricultural Economics

JF - European Review of Agricultural Economics

IS - 1

ER -

Gains from quota trade: theoretical models and an application to the Danish fishery

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