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ICES Journal of Marine Science: Journal du Conseil Advance Access originally published online on March 19, 2007
ICES Journal of Marine Science: Journal du Conseil 2007 64(3):439-445; doi:10.1093/icesjms/fsm019
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© 2007 International Council for the Exploration of the Sea. Published by Oxford Journals. All rights reserved. For Permissions, please email: journals.permissions@oxfordjournals.org

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

Håkan Eggert1, and Ragnar Tveterås2

1 Department of Economics, Göteborg University, PO Box 640, SE 405 30, Göteborg, Sweden
2 University of Stavanger, N-4036 Stavanger, Norway

Correspondence to H. Eggert: tel: +46 31 7734175; fax: +46 31 7731326; e-mail: hakan.eggert{at}economics.gu.se

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: 439–445.

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.

Keywords: cost function, efficiency gains, individual vessel quotas, Swedish fisheries

Received 21 August 2006; accepted 18 December 2006; advance access publication 19 March 2007.


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