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Subsidies, Fisheries Management and Stock Depletion

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  • This paper investigates the impact of fishery subsidies on resource stocks in 23 OECD countries for the period 1996-2011. Country level subsidy data is matched with a resource stock index prepared by the Sea Around Us Project. Since the impact of subsidies is likely to vary by type, subsidies are grouped into three categories: Direct Payments, Cost Reducing Transfers, and subsidies to management and infrastructure investments that represent General Services. As the impact of subsidies is likely a function of existing fisheries management, two different management regimes are evaluated: quota-based and traditional input/output management. Findings show that the effect of subsidies depends on both the type of subsidy and the management regime in place. Cost reducing subsidies have no effect on stocks if management is quota-based but have negative effects if management uses traditional input/output restrictions. Subsidies for improving fishery management and infrastructure produce small beneficial effects on stocks under traditional management, but no effect with quota-based management. To examine the robustness of the results, the model is re-estimated using the share of green parties in parliament as an instrument for fishery subsidies. Green parties prefer fewer fishery subsidies following a widely shared notion that the subsidies are harmful. The share of green parties is, however, unlikely to affect resource stocks other than through subsidies because fishing industries are small. The result is in accordance with the main results. These results suggest that global efforts to reform fishery subsidies should be carried out in a selective manner.
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  • Sakai, Yutaro. 2015. Subsidies, Fisheries Management and Stock Depletion. In: Proceedings of the Eighth Biennial Forum of the North American Association of Fisheries Economists, May 20-22, 2015, Ketchikan, Alaska: Economic Sustainability, Fishing Communities and Working Waterfronts. Compiled by Ann L. Shriver and Melissa Errend. North American Association of Fisheries Economists, Corvallis, Oregon, USA, 2015.
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  • Ketchikan, Alaska, USA
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  • Alaska Sea Grant, North Pacific Fishery Management Council, North Pacific Research Board, Northern Economics, Pollock Conservation Cooperative Research Center, Rasmuson Foundation, University of Alaska Fairbanks, School of Fisheries and Ocean Sciences, University of Alaska Southeast, Ketchikan
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