Productivity Change under an Individual Transferable Quota Management System

Abstract

This study examines productivity change in the Mid‐Atlantic surfclam and ocean quahog fishery, which has been managed since 1990 using Individual Transferable Quotas (ITQ). Productivity change is estimated through a Malmquist index from 1981–2008, capturing change before and after implementation of the quota system. We then decompose the index to examine changes in technical efficiency, scale efficiency, and technical change. Our findings indicate that the ITQ system has not sustained gains in vessel productivity. These results are thought to be driven by spatial changes in biomass and the inability to access more productive fishing grounds.