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Economic and physical measures of capacity: A comparative analysis of Danish trawlers Public Deposited

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  • The use of Data Envelopment Analysis (DEA) has been proposed as a possible tool to enable the measurement of fishing capacity worldwide. In fisheries the DEA approach has been limited to measuring physical capacity, where capacity is defined as the maximum amount of output that can be produced per unit of time, given existing plant and equipment and unrestricted availability of variable inputs. The physical (or technical) measure of capacity requires a set of physical input and output data, including variable and fixed input factors and production outputs. An economic measure of capacity can be defined as the maximum revenue attainable for the given inputs, using relevant outputs and output prices in the model. Due to a general scarcity of economic data, such analyses have yet to be seriously considered in a fisheries context. This paper considers Danish North Sea trawlers where detailed economic and physical vessel data are available. The economic and physical measures are compared and contrasted using statistical analysis. The two approaches and potential fishery management implications are discussed.
  • Keywords: Data Envelopment Analysis, Economic capacity, Danish North Sea trawlers, Physical capacity, Fisheries Economics, Theoretical and Empirical Bio-Economic Modelling
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  • Lindebo, Erik, Ayoe Hoff, Niels Vestergaard. 2002. Economic and physical measures of capacity: A comparative analysis of Danish trawlers. Peer Review: No. In: Proceedings of the Eleventh Biennial Conference of the International Institute of Fisheries Economics and Trade, August 19-22, 2002, Wellington, New Zealand: Fisheries in the Global Economy. Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2002. CD ROM.
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