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Abstract
We present the first
ex post
study that quantitatively analyses the effects of a licence buyback
and enhanced quota trading on the profitability and productivity of individual
vessels in a fishery. Using firm-level data and a profit index decomposition method,
we find that small and large vessels and three different trawler fleets all experienced
substantial productivity gains in the year immediately following a licence buy-back
and the establishment of a quota brokerage service. The apparent ongoing benefits of
the buy-back and increased quota trading over the sample period are in stark contrast
to the generally unfavourable long-term outcomes commonly associated with vessel
buy-backs in input-controlled fisheries.