This paper discusses the role of fuel subsidies to the fishing industry and argues that the fuel subsidies can maintain over capacity and unsustainable harvesting of fish in times of inflated fuel prices. The abstract is below.
Global fisheries are currently overcapitalized, resulting in overfishing in many of the world’s fisheries. Given that fuel constitutes a significant component of fishing costs, we expect recent increases in fuel prices to reduce overcapacity and overfishing.
This paper discusses the role of fuel subsidies to the fishing industry and argues that the fuel subsidies can maintain over capacity and unsustainable harvesting of fish in times of inflated fuel prices. The abstract is below.
Global fisheries are currently overcapitalized, resulting in overfishing in many of the world’s fisheries. Given that fuel constitutes a significant component of fishing costs, we expect recent increases in fuel prices to reduce overcapacity and overfishing.
However, government fuel subsidies to the fishing sector reduce, if not completely negate, this positive aspect of increasing fuel costs. Here, we explore the theoretical basis for the expectation that the increasing fuel prices faced by fishing enterprises will reduce fishing pressure.
Next, we estimate the amount of fuel subsidies to the fishing sector by governments globally to be in the range of US$4.2–8.5 billion per year. Hence, depending on how much of this subsidy existed before the recent fuel price increases, fishing enterprises, as a group, can absorb as much as this amount of increase in their fuel budget before any conservation benefits occur as a result of fuel price increases.
Ussif Rashid Sumaila, Louise Teh, Reg Watson, Peter Tyedmers and Daniel Pauly, 2008. 'Fuel price increase, subsidies, overcapacity, and resource sustainability.' ICES Journal of Marine Science, 65: 832–840.
This report is available here.
(This is a pay service.)
Post a new comment »