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Stubborn Fuel Tax Concessions – The Case of Fisheries in Norway

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  • On the background of the abolishment of traditional subsidies this paper discusses the persistency of the major remaining subsidy scheme in Norwegian fisheries: exemption from fuel taxes. The reimbursement scheme stems from the late 1980s, and has been persistent since, under different governments. This paper gives the background for this support against theoretical predictions on subsidies' effects on fishing behaviour and profitability. For 2011 the estimated exempted fuel taxes to the fishing fleet is 999.0 million NOK, amounting to 6.3 per cent of the landed value, against 772.7 million NOK (6.4 per cent of landed value) in 2007. Also, the Norwegian scheme is discussed against similar arrangements in other countries. The national fishing fleet is heterogeneous with respect to oil consumption in transport and fishing operations. Hence, the effect of the fuel subsidies is different along different fleet components. The implications of abolishing this subsidy for the fishing fleet in general, for different vessel groups, as well as for policy implications are discussed.
  • Keywords: Markets: Related Markets Policy, Fisheries Economics, Markets and Trade
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  • Flaaten, Ola,J.R. Isaksen, and O. Hermansen. 2014. Stubborn Fuel Tax Concessions – The Case of Fisheries in Norway. In: Towards ecosystem based management of fisheries: what role can economics play?: Proceedings of the Seventeenth Biennial Conference of the International Institute of Fisheries Economics and Trade, July 7-11, 2014, Brisbane, Australia. Complied by Ann L. Shriver & Melissa Errend. Corvallis, OR: International Institute of Fisheries.
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  • Fisheries Research & Development Corporation, World Wildlife Fund, MG Kailis Group, AquaFish Innovation Lab, NOAA Fisheries, The European Association of Fisheries Economists, Japan International Fisheries Research Society, United Nations University, NORAD
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