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Catch limits, capacity utilization and cost reduction in Japanese fishery management

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  • Michiyuki Yagi
  • Shunsuke Managi
Abstract
Japan's fishery harvest peaked in the late 1980s. Providing individually specific catch shares of the Total Allowable Catch (TAC) to each fisherman is the key to avoid the race for fish. Thus, in moving the idea into practice with the actual implementation of catch shares, it is curial to estimate the potential cost reduction in the industry. We find that the maximum level of production the fixed inputs in Japan are capable of supporting (i.e., capacity output) could be three times higher. Additionally, current overall fixed inputs could be reduced to one-tenth. Getting rid of these inefficient fishers would help lead to sustainable fishery management. These significant potential results are important for policy purpose. For example, about 450 billion yen (about 4.5 billion dollars) can be saved allocating individually specific catch shares to each fisherman.
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Suggested Citation

  • Michiyuki Yagi & Shunsuke Managi, 2011. "Catch limits, capacity utilization and cost reduction in Japanese fishery management," Agricultural Economics, International Association of Agricultural Economists, vol. 42(5), pages 577-592, September.
    • Handle: RePEc:bla:agecon:v:42:y:2011:i:5:p:577-592
    DOI: j.1574-0862.2010.00533.x
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    Cited by:

    1. Cesaroni, Giovanni & Kerstens, Kristiaan & Van de Woestyne, Ignace, 2019. "Short- and long-run plant capacity notions: Definitions and comparison," European Journal of Operational Research, Elsevier, vol. 275(1), pages 387-397.
    2. Ho Geun Jang & Satoshi Yamazaki & Eriko Hoshino, 2019. "Profit and equity trade‐offs in the management of small pelagic fisheries: the case of the Japanese sardine fishery," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(3), pages 549-574, July.
    3. Tanaka, Kenta & Higashida, Keisaku & Managi, Shunsuke, 2014. "A laboratory assessment of the choice of vessel size under individual transferable quota regimes," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(3), July.
    4. Giovanni Cesaroni & Kristiaan Kerstens & Ignace Van de Woestyne, 2017. "A New Input-Oriented Plant Capacity Notion: Definition and Empirical Comparison," Pacific Economic Review, Wiley Blackwell, vol. 22(4), pages 720-739, October.
    5. Arimura, Toshi H. & Kaneko, Shinji & Managi, Shunsuke & Shinkuma, Takayoshi & Yamamoto, Masashi & Yoshida, Yuichiro, 2019. "Political economy of voluntary approaches: A lesson from environmental policies in Japan," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 41-53.
    6. Asproudis, Elias & Filippiadis, Eleftherios, 2021. "Bargaining for Community Fishing Quotas," MPRA Paper 107409, University Library of Munich, Germany.
    7. Nicolas Sanz & Bassirou Diop & Fabian Blanchard & Luis Lampert, 2017. "On the influence of environmental factors on harvest: the French Guiana shrimp fishery paradox," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(2), pages 233-247, April.
    8. Shunsuke Managi & Suman K. Sharma, 2016. "Special Issue Of The Singapore Economic Review — Economics Of Crises And Disasters," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(01), pages 1-10, March.
    9. Kristiaan Kerstens & Jafar Sadeghi & Ignace Woestyne & John Walden, 2024. "Short-run Johansen frontier-based industry models: methodological refinements and empirical illustration on fisheries," Journal of Productivity Analysis, Springer, vol. 61(1), pages 47-62, February.
    10. Toshi H.Arimura & Shinji Kaneko & Shunsuke Managi & Takayoshi Shinkuma & Masashi Yamamoto & Yuichiro Yoshida, 2016. "Political Economy of Voluntary Approaches: A Lesson from Environmental Policies," Working Papers e107, Tokyo Center for Economic Research.

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    More about this item

    JEL classification:

    • L70 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - General
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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