Theoretical and Empirical Considerations for Estimating Capacity and Capacity Utilization in Commercial Fisheries

Abstract

Capacity and capacity utilization within firms and industries historically has been an important consideration in economics. Their importance and application to fishery problems has increased considerably in recent years. Economic efficiency is often discussed in terms of optimum capacity. Supply responses are predicted on the basis of capacity for given changes in market and fish stock conditions. Comparisons of capacity with available fish stocks are often made for purposes of determining investment potential and required credit sources. Perhaps the most important area being addressed today where capacity considerations are of importance is the development of fishery management plans for the U.S. fishery conservation zone. The Fishery Conservation and Management Act of 1976 (hereafter referred to as FCMA) requires plans proposed by Fishery Management Councils to assess and specify the capacity and the extent to which fishing vessels of the United States on an annual basis will harvest the optimum (U.S. Congress, p. 38). This assessment and specification of capacity is important in determining appropriate management regulations which may be imposed on domestic fisheries and in determining the allowable level of foreign catch. In addition, economic efficiency is considered in determining optimum yield and probable effects of proposed regulations. The purpose of this paper is to address the question of capacity with particular reference to the development of fishery management plans. The discussion is divided into three parts. First, the theoretical construct of capacity will be examined. The second part is a discussion of methodological problems in empirical measurement. The final section contains a review of measures of capacity used in a sample of fishery management plans.