Efficiency Gains and Cost Reductions from Individual Transferable Quotas: A Stochastic Cost Frontier for the Australian South East Fishery Public Deposited

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  • In this paper efficiency gains and associated cost reductions from increases in quota leased or traded are estimated for the South East Trawl Fishery (SETF), using Australian Fisheries Management Authority logbook data and Australian Bureau of Agricultural and Resource Economics survey data on 47 vessels in an unbalanced panel data set (of 131 observations) for the period 1997 to 2000. Estimated results indicate that increases in the volume of quota traded (either leased or sold, in tonnes of fish) have resulted in considerable efficiency gains and cost reductions in the SETF, ranging from 1.8 to 3.5 cents per kilogram for surveyed vessels for every one per cent increase in the volume of quota traded. Mean vessel efficiency levels also increased over the sample period with increases in quota traded.
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  • Nhu Che, Tuong, Tom Kompas. 2002. Efficiency Gains and Cost Reductions from Individual Transferable Quotas: A Stochastic Cost Frontier for the Australian South East Fishery. 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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