Measuring and Controlling Fishing Capacity for Chinese Inshore Fleets

TL;DR

This paper assesses Chinese inshore fishing capacity over 13 years using DEA, analyzes factors affecting capacity, and suggests tax-based policies to control capacity and improve industry efficiency.

Contribution

It introduces a quantitative model linking fishing capacity, utilization, income, and tax policies, providing practical recommendations for capacity control.

Findings

Tax system effectively curtails fishing capacity

Proper tax rates improve industry efficiency

DEA method accurately measures capacity and utilization

Abstract

The fishing capacity and capacity utilization for Chinese inshore fleets over the latest 13 years were measured using the DEA method. Relevant models were then established to analyze the relationships between capacity output, capacity utilization, and income, and the function of collecting taxes to control fishing capacity was quantitatively simulated. It was pointed out that the tax system would be effective for curtailing fishing capacity and improving the efficiency of the entire fishing industry in China, provided that the tax rate is not too low. Finally, it was suggested that collecting taxes at a proper rate be implemented for Chinese inshore fishing fleets.