Diana Tingley

Estimating capacity utilisation in multi-purpose, multi-métier fisheries

Abstract To manage fishing capacity, fisheries managers must be able to assess both the current and desired levels of capacity. An approach for estimating levels of capacity that has recently gained increased attention in fisheries economic research is Data Envelopment Analysis (DEA). This can be used to estimate capacity output for individual fishing boats based on the level of inputs used and outputs produced, relative to other boats operating under similar conditions in the time frame being considered, i.e. those participating in similar activities. An analytical limitation arises when boats under consideration undertake more than one activity in the time period being analysed, e.g. by operating in more than one area or by using different gears. Ignoring these additional activities may result in capacity utilisation (CU) being underestimated for that time period. Further, the need to compare boats operating under similar conditions in the same time frame requires data to be used at a highly disaggregated level, possibly resulting in a relatively small pool of boats against which capacity can be assessed. This may further distort estimates of CU. In this paper, a method for incorporating ‘other’ activities and the implications of small sets of observations for the measurement of CU, is examined based on the multi-metier, multi-purpose UK fleet operating in the English Channel.