Capacity utilization measures and excess capacity in multi-product privatized fisheries

Using individual firm data from before and after the introduction of individual transferable quotas (ITQs) in the Nova Scotia mobile gear fishery, data envelopment analysis (DEA) is used to examine capacity and capacity utilization (CU). This paper is the first to look at CU in a multi-species fishery with both ITQ and non-ITQ components. The paper examines how a change in the property rights regime can affect a multi-product industry and the consequences in terms of product-specific CU, as well as aggregate CU. The results provide insights to regulators interested in using market-based approaches to improve efficiency in multi-product industries.