Presently, I have three main research areas. The first one is
modern regulation theory and renewable resources. The second one is measurement
of productivity and capacity in renewable resource industries and the third is bio-economic
and cost-benefit analysis.
Regulation theory
Regulation of renewable resources is among other things characterized by
the fact that the regulator doesn't have complete knowledge about all relevant
factors. For example, the fishermen are the only ones that know exactly their
real catches. When the regulation is based on catch limitations (as it is in
many cases), it becomes important that the fishermen report its true catches,
because complete monitoring and control is not possible. Such a system provides
incentives to discard, illegal landings which imply that the goal of the
regulation is often not fulfilled. Another example is lack of detailed
information about the vessel's cost structure and production technology, which
only the fishermen possess. Therefore regulation based on regulation of the use
of inputs (e.g. restrictions of gear or size of boat) may lead to unexpected
results, when the fishermen adjust to the regulation.
In general, the regulation problem in fisheries is in most cases a principal
(regulator) - agent (fishermen) problem. By modeling explicitly the information
problem and the interaction between the regulator and the fishermen, a
regulation scheme can be designed, which in general shows that the lack of
information results in a loss in efficiency, but at the same time secures that
the goal of regulation is achieved.
Publications:
Vestergaard,
N. 2010. Principal-Agent
Analysis in Fisheries. In Handbook for Marine Fisheries Conservation
and Management by R. Quentin Grafton, Ray Hilborn,
Dale Squires, and Meryl J. Williams (eds.). Oxford
University Press.
Jensen, F. and N. Vestergaard.
2007. Asymmetric information
and uncertainty: The usefulness of logbooks as a regulation measure. Ecological
Economics, Vol 63(4), pp. 815-827.
Hansen, L.G., F. Jensen, U.
S. Brandt and N. Vestergaard. 2006. Illegal Landings: An Aggregate Catch
Self-Reporting Mechanism. American
Journal of Agriculture Economics, Vol. 88(4), pp.974-985.
Jensen, F. and N. Vestergaard, 2003. Prices versus
Quantities in Fisheries Models. Land
Economics, Vol. 79, No. 3, pp. 415-425.
Jensen, F. and N. Vestergaard, 2002. A Principal -
Agent Analysis of Fisheries. Journal of
Institutional and Theoretical Economics, Vol. 158, No. 2, pp. 276-285.
Jensen, F. and N. Vestergaard, 2002. Moral Hazard Problems in
Fisheries Regulation: The Case of Illegal Landings and Discard. Resource
and Energy Economics Vol. 24(4), pp. 281-299.
Jensen, F. and N. Vestergaard 2001. Management of Fisheries in the
EU: A Principal-Agent Analysis. Marine Resource Economics, Vol. 16,
pp. 277-291.
Efficiency, productivity and Capacity
Correct measurement of efficiency, productivity and capacity of sectors
exploiting renewable resources is important because this can give the regulator
information about whether the economic development of the sector is sustainable
and it provides also information about factors influencing the technological
development and the efficiency of the fleet. Modern production economic theory
is applied to study these issues using methods such as the Stochastic Frontier
Analysis and the Data Envelopment Approach. We have been
developing an industry capacity model which we have applied to a German Bank
Branch.
Publications:
Kjærsgaard, J., N. Vestergaard and K. Kerstens, 2009. Ecological
Benchmarking to Explore Alternative Fishing Schemes to Protect Endangered
Species by Substitution: The Danish Demersal Fishery in the North Sea. Environmental and Resource Economics,
Vol. 43(4), pp. 573-590.
Lindebo, E., A. Hoff and N. Vestergaard.
2007. Revenue-based
capacity utilisation measures and decomposition: The Case of Danish North Sea
Trawlers. European Journal of Operational Research, Vol. 180(1), pp.
215-227.
Kerstens, K., N. Vestergaard and D. Squires. 2006. A Short-Run Johansen
Industry Model for Common-Pool Resources: Planning a Fisheries' Industry
Capacity to Curb Overfishing. European Review of Agricultural Economics,
Vol. 33(3), pp.361-389.
Vestergaard,
N. 2005. Fishing Capacity in Europe: Special Issue Introduction. Marine Resource Economics.
Vol. 20, pp. 323-326.
Kerstens, K., D. Squires and N.
Vestergaard. 2005. Methodological Reflections on the Short-Run Johansen
Industry Model in relation to Capacity Management. Marine Resource Economics, Vol. 20, pp. 425-443.
Vestergaard N., D. Squires, F. Jensen and J. L. Andersen, 2003.
Technical Efficiency of the Danish Trawl fleet: Are the Industrial Vessels
Better than Others? Nationaløkonomisk Tidsskrift 141(2): 225-242.
Vestergaard, N., D. Squires and J. Kirkley,
2003. Measuring Capacity and
Capacity Utilization in Fisheries: The Case of the Danish Gill-net Fleet. Fisheries Research Vol. 60(2-3), pp. 357-368.
Vestergaard N., A. Hoff, J. L. Andersen, E. Lindebo,
L. Grønbæk, S. Pascoe, D. Tingley, S. Mardle, O. Guyader, F. Daures, L. van Hoof, J.W. de Wilde and J. Smit, 2002. Measuring Capacity in Fishing Industries using the Data Envelopment
Approach (DEA). EU Project Final Report,
99/005. University of Southern Denmark.
Bio-economic
and Cost-Benefit Analysis
There is thousands of application of the bio-economic approach, but only
a few formal applications of cost-benefit analysis to natural resources
including fisheries. One aim of the research is to develop and apply
cost-benefit analysis tools to dynamic problems using bio-economic approaches
in a formal cost-benefit framework. Another aim is to analyse and apply
bio-economic models. Currently I'm working on a simple age-structured
bio-economic model.
Publications:
Kronbak, L. G., Nielsen,
J. R., Jørgensen, O. A. and N. Vestergaard. 2009. Bio-economic
evaluation of implementing trawl fishing gear with different selectivity. Journal of Environmental Management Vol.
90(11), pp. 3665-3674.
Agnarsson, S., R. Arnason, K. Johannsdottir, L.K. Sandal, S.I. Steinshamn, L. Ravn-Jonsen
and N. Vestergaard. 2008. Multispecies and Stochastic issues: Comparative
Evaluation of the Fisheries Policies in Denmark, Iceland and Norway. TemaNord2008, nr. 540. Copenhagen.
Arnason, R., L. K. Sandal, S.I. Steinshamn and N. Vestergaard
2004. Optimal Feedback Controls: Comparative Evaluation of
Cod Fisheries in Denmark, Iceland and Norway. American Journal of Agricultural Economics,
Vol. 86(2).
Vestergaard, N. 1995. Sustainable Exploitation
of Renewable Resources: The Faroe Island cod fishery. (In
Danish, abstract in English). Nationaløkonomisk Tidsskrift 133(3): 215-235.
Last updated 22. December 2009