Evaluating the Impact of Rights-based Fisheries
Management: Evidence from the New England
Groundfish Fishery
Ling Huang*, Subhash Ray, Kathleen Segerson, John Walden
*University of Connecticut
NAAFE 2015
Ling Huang*, Subhash Ray, Kathleen Segerson, John Walden
*University of Connecticut
Evaluating the Impact of Rights-based Fisheries Management: Evidence from the New England Groundfish Fishery
Policy background
• Common Pool in the New England groundfish fisheries
• Allocation of days at sea
• Area closures
• Gear restricted areas
• Sector management: rights-based approach
Ling Huang*, Subhash Ray, Kathleen Segerson, John Walden
*University of Connecticut
Evaluating the Impact of Rights-based Fisheries Management: Evidence from the New England Groundfish Fishery
New regime in the New England groundfish fisheries
• Started from May 1, 2010
• Voluntarily formed sectors
• Annual catch limits (ACLs)
• Annual Catch Entitlements (ACEs)
• Each member has the potential sector contributions (PSC) to
the sector’s ACEs
• Based on their catch history for a fixed period (1996-2006)
• ACEs transferable within the sector and across sectors
• Joint liability
• Overage could impact next year’s ACEs and lead to penalties
Ling Huang*, Subhash Ray, Kathleen Segerson, John Walden
*University of Connecticut
Evaluating the Impact of Rights-based Fisheries Management: Evidence from the New England Groundfish Fishery
Ling Huang*, Subhash Ray, Kathleen Segerson, John Walden
*University of Connecticut
Evaluating the Impact of Rights-based Fisheries Management: Evidence from the New England Groundfish Fishery
Ling Huang*, Subhash Ray, Kathleen Segerson, John Walden
*University of Connecticut
Evaluating the Impact of Rights-based Fisheries Management: Evidence from the New England Groundfish Fishery
Research outline
• What do we gain from forming sectors?
• Does cooperation exist?
Ling Huang*, Subhash Ray, Kathleen Segerson, John Walden
*University of Connecticut
Evaluating the Impact of Rights-based Fisheries Management: Evidence from the New England Groundfish Fishery
Literature review
• A recent survey by Morrison Paul et al. (2010)
• Two primary methods: productivity indices and frontiers
• Total factor productivity (TFP) measurement for the
Pacific Coast trawl fishing industry (Squires, 1992)
• TFP in the New England groundfish fishery (Jin et al.,
2002) (TFP increased from 1964 to 1982, but declined
from 1983 to 1993 mainly due to more stringent output
and effort controls.)
• Productivity change in the Mid-Atlantic surfclam and
ocean quahog fishery under ITQ management (Walden et
al., 2012) (productivity increased immediately after ITQ
implementation, but the gains were not sustained for
multiple reasons)
Ling Huang*, Subhash Ray, Kathleen Segerson, John Walden
*University of Connecticut
Evaluating the Impact of Rights-based Fisheries Management: Evidence from the New England Groundfish Fishery
Main Dataset
• Logbook data from 2007 to 2012 for the New England
groundfish fisheries
•
•
•
•
•
•
weight of catch
price by species and trip
catch region by vessel, species and trip
trip length
crew size
gear type by vessel and trip and location
• Individual vessel characteristics
• Vessel tonnage
• Vessel size
• Vessel power
Ling Huang*, Subhash Ray, Kathleen Segerson, John Walden
*University of Connecticut
Evaluating the Impact of Rights-based Fisheries Management: Evidence from the New England Groundfish Fishery
Stochastic Production Frontiers (SPF) Model
• For multi-species
lnyit1 = f (
•
•
•
•
yit2 yit3
yitK
,
, ...,
, xit ; β) + εit − uit , uit ≥ 0
yit1 yit1
yit1
(1)
y: output
i: individual vessel i
t: time
x: input
• Technical Efficiency
TEi = E [e −uit |εit ]
Ling Huang*, Subhash Ray, Kathleen Segerson, John Walden
(2)
*University of Connecticut
Evaluating the Impact of Rights-based Fisheries Management: Evidence from the New England Groundfish Fishery
Table: Stochastic Production Frontier model result
Parameter
Frontier
ln(y2/y1)
ln(y3/y1)
ln (vessel length)
ln(crew size)
ln(trip length)
(ln(y2/y1))2
(ln(y3/y1))2
(ln (vessel length))2
(ln(crew size))2
(ln(trip length))2
lnstock
t
t2
t3
Month2
Month3
Month4
Month5
Month6
Month7
Month8
Month9
Month10
Month11
Month12
location2
location3
location4
ln(y2/y1)*ln(y3/y1)
Coef.
Std. Err.
-0.511***
-0.127***
12.500***
-1.417***
-0.475***
-0.015***
-0.005***
-1.496***
0.097***
0.023***
-2.524
0.041***
0.000***
0.000***
-0.070***
-0.020
-0.049**
0.150***
0.111***
0.054**
-0.072***
-0.059**
-0.135***
-0.018
0.052*
0.036
-0.374***
-0.481***
0.004***
0.015
0.010
0.870
0.361
0.130
0.000
0.000
0.113
0.036
0.006
2.514
0.007
0.000
0.000
0.020
0.019
0.023
0.024
0.021
0.023
0.025
0.027
0.029
0.029
0.027
0.022
0.019
0.027
0.000
Ling Huang*, Subhash Ray, Kathleen Segerson, John Walden
Parameter
ln(y2/y1)*ln(vessel length)
ln(y2/y1)*ln(crew size)
ln(y2/y1)*on(trip length)
ln(y2/y1)*lnstock
ln(y2/y1)*t
ln(y3/y1)*ln (vessel length)
ln(y3/y1)*ln(crew size)
ln(y3/y1)*ln(trip length)
ln(y3/y1)*lnstock
ln(y3/y1)*t
ln (vessel length)*ln(crew size)
ln (vessel length)*ln(trip length)
ln (vessel length)*lnstock
ln (vessel length)*t
ln(crew size)*ln(trip length)
ln(crew size)*lnstock
ln(crew size)*t
ln(trip length)*lnstock
ln(trip length)*t
lnstock*t
after
cons
Inefficiency model
ln(σ(uit )2 )
after
ln(vessel length)
Crowding
Sector size
Shannon location
cons
ln(σ(vit )2 )
# of obs.
Coef.
0.028***
-0.011***
-0.005***
-0.060***
0.000***
-0.003
0.010***
0.003***
0.071***
0.000***
0.429***
0.348***
0.874
-0.012***
-0.118***
-0.950**
0.001
0.273**
0.001***
-0.027**
-0.071
-18.962***
Std. Err.
0.004
0.002
0.001
0.017
0.000
0.003
0.002
0.001
0.013
0.000
0.098
0.034
0.618
0.001
0.021
0.374
0.001
0.133
0.000
0.014
0.119
1.684
0.498***
-0.489***
-0.022***
-0.023***
-0.465***
3.264***
-1.599***
38881
0.042
0.048
0.001
0.001
0.022
0.190
0.022
*University of Connecticut
Evaluating the Impact of Rights-based Fisheries Management: Evidence from the New England Groundfish Fishery
Table: The inefficiency model
Parameter
ln(σ(uit )2 )
after
ln(vessel length)
Crowding
Sector size
Shannon location
cons
ln(σ(vit )2 )
Ling Huang*, Subhash Ray, Kathleen Segerson, John Walden
Coef.
Std. Err.
0.498***
-0.489***
-0.022***
-0.023***
-0.465***
3.264***
-1.599***
0.042
0.048
0.001
0.001
0.022
0.190
0.022
*University of Connecticut
Evaluating the Impact of Rights-based Fisheries Management: Evidence from the New England Groundfish Fishery
Figure: Average Technical Efficiency Over Years
Ling Huang*, Subhash Ray, Kathleen Segerson, John Walden
*University of Connecticut
Evaluating the Impact of Rights-based Fisheries Management: Evidence from the New England Groundfish Fishery
Table: Change in Probability of Choosing the Same Location
Sector
1
2
2
2
2
2
2
2
2
2
2
3
3
3
3
3
3
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
5
5
5
Vessel pair
(1, 2)
(3, 4)
(3, 5)
(3, 6)
(3, 7)
(4, 5)
(4, 6)
(4, 7)
(5, 6)
(5, 7)
(6, 7)
(8, 9)
(8, 10)
(8, 11)
(9, 10)
(9, 11)
(10, 11)
(12, 13)
(12, 14)
(12, 15)
(12, 16)
(12, 17)
(12, 18)
(13, 14)
(13, 15)
(13, 16)
(13, 17)
(13, 18)
(14, 15)
(14, 16)
(14, 17)
(14, 18)
(15, 16)
(15, 17)
(15, 18)
(16, 17)
(16, 18)
(17, 18)
(19, 20)
(19, 21)
(20, 21)
Constant
1.279***
(Std. Err.)
(0.124)
After
-2.793 ***
(Std. Err.)
(0.254)
# of obs
266
Before(%)
89.9
After(%)
6.5
Change(%)
-83.5***
1.905***
1.666***
(0.152)
(0.148)
0.610
0.270
(0.383)
(0.241)
450
398
97.2
95.2
99.4
97.4
2.2
2.1
1.607***
1.805***
(0.107)
(0.149)
0.574*
0.665*
(0.297)
(0.386)
507
401
94.6
96.4
98.5
99.3
3.9*
2.9*
2.336***
1.952***
2.630***
-0.665***
-0.454***
-0.443***
1.171***
(0.215)
(0.141)
(0.339)
(0.149)
(0.103)
(0.108)
(0.170)
-0.445*
0.624*
-0.624
1.497***
0.937***
1.300***
-0.505**
(0.255)
(0.373)
(0.387)
(0.190)
(0.146)
(0.161)
(0.198)
649
553
457
231
319
289
273
99.0
97.5
99.6
25.3
32.5
32.9
87.9
97.1
99.5
97.8
79.7
68.6
80.4
74.7
-2.0*
2.0*
-1.8
54.4***
36.1***
47.5***
-13.2**
1.391***
1.691***
2.007***
1.556***
1.677***
1.728***
1.660***
1.640***
1.381***
2.066***
1.873***
1.620***
(0.156)
(0.124)
(0.240)
(0.130)
(0.141)
(0.145)
(0.166)
(0.150)
(0.100)
(0.166)
(0.131)
(0.127)
-0.571***
-0.750***
-1.140***
-0.723***
-0.462**
-0.601***
0.706*
0.920***
0.817***
-0.466**
0.017
0.984***
(0.192)
(0.173)
(0.275)
(0.203)
(0.219)
(0.232)
(0.404)
(0.287)
(0.246)
(0.205)
(0.253)
(0.365)
299
458
248
318
333
315
276
580
538
601
496
483
91.8
95.5
97.8
94.0
95.3
95.8
95.2
94.9
91.6
98.1
96.9
94.7
79.4
82.7
80.7
79.8
88.8
87.0
99.1
99.5
98.6
94.5
97.1
99.5
-12.4***
-12.8***
-17.1***
-14.3***
-6.5**
-8.8***
3.9*
4.5***
7.0***
-3.5**
0.1
4.8***
1.519***
1.691***
(0.149)
(0.164)
0.121
0.712*
(0.202)
(0.400)
409
299
93.6
95.5
95.0
99.2
1.4
3.7*
1.457***
(0.119)
-0.043
(0.202)
375
92.7
92.1
-0.6
1.730***
1.547***
2.028***
-0.700***
(0.138)
(0.155)
(0.206)
(0.174)
0.039
0.685**
0.053
-1.414***
(0.265)
(0.313)
(0.353)
(0.333)
367
320
295
178
95.8
93.9
97.9
24.2
96.2 0
98.7
98.1
1.7
.3
4.8**
0.3
-22.5***
1.017***
(0.145)
1.083***
(0.274)
278
84.5
98.2
13.7***
Ling Huang*, Subhash Ray, Kathleen Segerson, John Walden
*University of Connecticut
Evaluating the Impact of Rights-based Fisheries Management: Evidence from the New England Groundfish Fishery
The independece test
lnxit = Ft + Fi + lnstockyear + it
(3)
• Ft : Fixed effect of time
• Fi : Fixed effect of individual vessel
• xit : trip length
H0 : ρij = 0
Ling Huang*, Subhash Ray, Kathleen Segerson, John Walden
(4)
*University of Connecticut
Evaluating the Impact of Rights-based Fisheries Management: Evidence from the New England Groundfish Fishery
Table: Fisher’s test of Conditional Independence
Sector
1
2
2
2
2
2
2
2
2
2
2
3
3
3
3
3
3
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
5
5
5
Vessel pair
(1, 2)
(3, 4)
(3, 5)
(3, 6)
(3, 7)
(4, 5)
(4, 6)
(4, 7)
(5, 6)
(5, 7)
(6, 7)
(8, 9)
(8, 10)
(8, 11)
(9, 10)
(9, 11)
(10, 11)
(12, 13)
(12, 14)
(12, 15)
(12, 16)
(12, 17)
(12, 18)
(13, 14)
(13, 15)
(13, 16)
(13, 17)
(13, 18)
(14, 15)
(14, 16)
(14, 17)
(14, 18)
(15, 16)
(15, 17)
(15, 18)
(16, 17)
(16, 18)
(17, 18)
(19, 20)
(19, 21)
(20, 21)
Before
r
0.195
0.151
0.213
0.112
0.249
0.594
0.269
0.577
0.458
0.680
0.314
-0.048
0.236
-0.003
0.018
0.012
-0.047
0.283
0.036
0.116
0.057
0.110
0.141
0.115
0.195
0.062
0.352
0.339
0.040
0.071
0.132
0.177
-0.030
0.105
0.144
0.012
-0.021
0.130
-0.094
-0.190
0.112
Ling Huang*, Subhash Ray, Kathleen Segerson, John Walden
Z
6.520***
5.035***
7.146***
3.702***
8.417***
22.589***
9.103***
21.750***
16.348***
27.403***
10.752***
-1.602
7.966***
-0.099
0.603
0.386
-1.545
9.604***
1.178
3.851***
1.896*
3.651***
4.693***
3.803***
6.539***
2.046**
12.154***
11.652***
1.324
2.357**
4.396***
5.901***
-0.990
3.478***
4.793***
0.410
-0.683
4.319***
-3.118***
-6.368***
3.714***
After
r
0.037
0.117
0.119
0.141
0.201
0.168
0.147
0.017
0.632
0.317
0.330
0.213
0.236
0.203
0.231
0.150
0.130
0.003
-0.113
0.098
0.023
0.271
0.335
0.170
0.017
0.026
-0.090
0.086
-0.006
-0.017
-0.035
-0.026
-0.088
-0.076
0.105
0.076
0.156
0.332
-0.123
0.060
0.064
Z
1.006
3.166***
3.220***
3.834***
5.512***
4.578***
3.984***
0.447
20.086***
8.855***
9.251***
5.847***
6.500***
5.556***
6.349***
4.081***
3.535***
0.080
-3.072***
2.658***
0.608
7.507***
9.401***
4.628***
0.452
0.701
-2.426**
2.326**
-0.175
-0.449
-0.941
-0.706
-2.388**
-2.047**
2.852***
2.042**
4.235***
9.317***
-3.335***
1.612
1.733*
Change
DI
DD
DD
DD
DD
DD
DD
DI
DD
DD
DD
ID
DD
ID
ID
ID
ID
DI
ID
DD
DI
DD
DD
DD
DI
DI
DD
DD
II
DI
DI
DI
ID
DD
DD
ID
ID
DD
DD
DI
DD
*University of Connecticut
Evaluating the Impact of Rights-based Fisheries Management: Evidence from the New England Groundfish Fishery
Conclusion
• Technical Efficiency increases by 3.45% on average after
2010 for trawl vessels;
• Agglomeration effect, sector size, location specialization
impact Technical Efficiency
• Multiple pieces of evidence supports that cooperation
exists.
Ling Huang*, Subhash Ray, Kathleen Segerson, John Walden
*University of Connecticut
Evaluating the Impact of Rights-based Fisheries Management: Evidence from the New England Groundfish Fishery