Conference Agenda

The Norwegian purse seine fishery, targeting multiple species, operates under a rights-based management system and has developed into a highly profitable industry. Using a vessel-year panel dataset from the Norwegian Directorate of Fisheries (2001-2022, 163 vessels), this study examines whether this development aligns with resource optimization by analysing input-oriented short-run (transient) and long-run (persistent) technical inefficiency, input misallocation, and the associated costs. Our findings indicate a high level of technical efficiency, with most excess input use attributable to transient inefficiency. Persistent inefficiency varies across regulatory vessel groups, with the highest in blue whiting vessels and the lowest in pelagic trawlers. However, the level and differences decline once vessel size is considered, suggesting that both direct and indirect links to vessel size in current regulations help reduce systemic input waste. We also observe that an increase in a vessel’s annual quota holding capacity slightly reduces transient technical inefficiency. Additionally, input misallocation costs are substantial, primarily driven by underutilization of labor relative to material inputs, which only marginally corrected with the increase in structural quota. These findings reinforce the value of current regulations in technical efficiency, while highlighting the need for targeted efforts to reduce short-term input waste and revise remuneration systems to encourage efficient labor use.