Technical efficiency effects of input controls: Evidence from Australia's banana prawn fishery

  • Kompas T
  • Che T
  • Grafton R
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This paper provides the first ex post estimates of the effects
of input controls on technical efficiency in a fishery. Using individual
vessel data from the northern prawn fishery of Australia for the
years 1990–1996 and 1994–2000, stochastic production frontiers
are estimated to analyse the efficiency impacts of input controls
on engine and vessel size. The results indicate that technical efficiency
is increasing in a measure of vessel size and engine capacity
that was controlled by the regulator from 1985 to 2001, and decreasing
in an unregulated input, gear headrope length. The study shows that
fishers have substituted from regulated to unregulated inputs over
the period 1990–2000 and technical efficiency has declined coincident
with increasing restrictions on vessel size and engine capacity.
The decline in technical efficiency indicates that the goal of the
regulator to increase economic efficiency has not been realized.

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