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Investment Behaviour in Individual Non-Transferable Quota Systems

Author

Listed:
  • Frank Jensen

    (IFRO - Institute of Food and Resource Economics [Copenhagen] - Faculty of Science [Copenhagen] - UCPH - University of Copenhagen = Københavns Universitet)

  • Jesper Andersen

    (IFRO - Institute of Food and Resource Economics [Copenhagen] - Faculty of Science [Copenhagen] - UCPH - University of Copenhagen = Københavns Universitet)

  • Carsten Jensen

    (IFRO - Institute of Food and Resource Economics [Copenhagen] - Faculty of Science [Copenhagen] - UCPH - University of Copenhagen = Københavns Universitet)

Abstract

This paper studies investment behaviour for the Danish demersal fishery in the North Sea. For the study period, this fishery is regulated by variants of individual non-transferable quotas. It is shown that interest rates and capital stocks are primary determinants of investments. Another conclusion is that an aggregated model based on the whole fleet gives identical results to models based on individual fleets (disaggregated models) for trawlers and Danish Seiners. However, for netters and other vessels the aggregated and disaggregated models yield different results. In addition, the variance of the estimated parameters is lower in the disaggregated models. This result arises because vessels in the disaggregated models are more homogeneous. Furthermore, investment in machinery, electronics and vessels are governed by one year-lagged variables, while investment in gears is governed by present variables for the Danish demersal fishery in the North Sea.

Suggested Citation

  • Frank Jensen & Jesper Andersen & Carsten Jensen, 2011. "Investment Behaviour in Individual Non-Transferable Quota Systems," Post-Print hal-00667597, HAL.
    • Handle: RePEc:hal:journl:hal-00667597
    DOI: 10.1080/00036846.2010.528371
    Note: View the original document on HAL open archive server: https://hal.science/hal-00667597
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    References listed on IDEAS

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    Cited by:

    1. Ingrid van Putten & Emmanuelle Quillérou & Olivier Guyader, 2012. "How constrained? Entry into the French Atlantic fishery through second-hand vessel purchase," Post-Print hal-00815455, HAL.

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