Impact of a simultaneous reduction in fishing subsidies and introduction of efficient management of rents: the case of the Northwest Spanish fleet

TY - JOUR

T1 - Impact of a simultaneous reduction in fishing subsidies and introduction of efficient management of rents

T2 - the case of the Northwest Spanish fleet

AU - Merayo Garcia, Eugenia

AU - Waldo, Staffan

AU - Nielsen, Max

PY - 2018

Y1 - 2018

N2 - Subsidies to the fishing sector have long been criticized for fueling over-fishing, and a reduction in subsidies is currently on the agenda in the negotiations within the World Trade Organization (WTO). This article analyzes the role of subsidies and other management measures for Spain, one of the largest fishing nations within the EU. A static bio-economic model is used to analyze the effect of simultaneous elimination of subsidies and introduction of an economically efficient management system for the Northwest Spanish fleet. It is concluded that improvements in management would bring substantial rents to the industry, up to €164 million, irrespective of subsidy level, but also a reduction in fishing effort of almost 60%. Under a management scheme that maximizes economic rents, elimination of subsidies in the fishery would increase social welfare, induced by a decrease in the equilibrium fishing effort level. However, the impact of subsidies under this scheme is limited.

AB - Subsidies to the fishing sector have long been criticized for fueling over-fishing, and a reduction in subsidies is currently on the agenda in the negotiations within the World Trade Organization (WTO). This article analyzes the role of subsidies and other management measures for Spain, one of the largest fishing nations within the EU. A static bio-economic model is used to analyze the effect of simultaneous elimination of subsidies and introduction of an economically efficient management system for the Northwest Spanish fleet. It is concluded that improvements in management would bring substantial rents to the industry, up to €164 million, irrespective of subsidy level, but also a reduction in fishing effort of almost 60%. Under a management scheme that maximizes economic rents, elimination of subsidies in the fishery would increase social welfare, induced by a decrease in the equilibrium fishing effort level. However, the impact of subsidies under this scheme is limited.

KW - Bio-economic model

KW - Fisheries management

KW - Fisheries subsidies

U2 - 10.1051/alr/2017041

DO - 10.1051/alr/2017041

M3 - Journal article

AN - SCOPUS:85035044197

SN - 0990-7440

VL - 31

JO - Aquatic Living Resources

JF - Aquatic Living Resources

M1 - 1

ER -