Potential rent and overcapacity in the Swedish Baltic Sea trawl fishery for cod (Gadus morhua)

• Published in: ICES Journal of Marine Science
• Main Authors: Eggert, Håkan, Tveterås, Ragnar
• Format: Text
• Language: English
• Published: Oxford University Press 2007
• Subjects: Article; Eggert; The Landing; Gadus morhua
• Online Access: http://icesjms.oxfordjournals.org/cgi/content/short/fsm019v1; https://doi.org/10.1093/icesjms/fsm019

<qd> Eggert, H. and Tveterås, R. 2007. Potential rent and overcapacity in the Swedish Baltic Sea trawl fishery for cod ( Gadus morhua ) – ICES Journal of Marine Science, 64. </qd>Many European Union (EU) fisheries have problems with depleted stocks and fleet overcapacity following the regulation of open-access regimes. Some EU countries have introduced individual vessel quotas (IVQs), which can stop “the race to catch” and provide fishers with incentives to minimize costs for a given catch. We model an IVQ fishery using a cost function approach and apply the methodology to the Swedish cod fishery in the Baltic Sea. Estimating a translog cost function for a data set of Swedish trawlers in 2001, we assess the potential gains from structural adjustment of the fleet. Results suggest a desired fleet reduction of 50–60% and a potential resource rent amounting to 25–30% of the landing value.