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Estimating Capital Value and Depreciation of Fishing Fleets: Application to French Fisheries

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Abstract
  • While the need to solve problems of overcapitalization and excess investment in fisheries is now broadly admitted, very little information exists on the level of capitalization and the structure of capital invested in the fishing sector. This paper presents the first results of a research program aiming at assessing the value of capital, investments and depreciation in fisheries. Results presented are derived from a field survey operated by Ifremer and record transaction on the fishing vessel second hand market. Statistical analysis is carried out according to a set of fishing components, such as vessel hull, engine, electronics and storage equipment. Firstly, hedonic price functions are estimated for the vessel and its main components. Secondly, a depreciation function of vessels according to their age and fleet is proposed. Finally, indicators of gross value of capital, net physical value as well as market value are estimated for different significant groups of fishing units belonging to the NSCA less than 24 m. fleet.
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  • Bihel, Julien, Olivier Guyader, Pascal Le Floc'h, Nolwenn Roudaut, Cécile Brigaudeau, Olivier Thebaud and Michele Jezequel. 2006. Estimating Capital Value and Depreciation of Fishing Fleets: Application to French Fisheries. In: Proceedings of the Thirteenth Biennial Conference of the International Institute of Fisheries Economics & Trade, July 11-14, 2006, Portsmouth, UK: Rebuilding Fisheries in an Uncertain Environment. Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2006. CD ROM. ISBN 0-9763432-3-1
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  • The National Oceanic & Atmospheric Administration Marine Fisheries Service, United States Department of Commerce (NOAA Fisheries); United Kingdom Department for Environment, Food and Rural Affairs (DEFRA); The United States Agency for International Development supported Aquaculture Collaborative Research and Support Program (ACRSP).
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