Virginia Institute of Marine Science
Australian Journal Of Agricultural And Resource Economics
Overcapacity is a major problem in common-pool resources. Regulators increasingly turn from limited entry to individual transferable use rights to address overcapacity. Using individual vessel data from before and after the introduction of individual harvest rights into a fishery, the paper investigates how characteristics of rights, scale of operations and transition period affect changes in individual and fleet capacity utilisation and excess capacity. The results indicate that individual harvest rights in both theory and practice offer the potential to address the problem of overcapacity in common-pool resources currently managed with limited-entry regulations.
Plant-Capacity; Fisheries; Efficiency; Rent
Squires, D; Jeon, Y; Grafton, RQ; and Kirkley, J, Controlling excess capacity in common-pool resource industries: the transition from input to output controls (2010). Australian Journal Of Agricultural And Resource Economics, 54(3), 361-377.