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Fuel price increase, subsidies, overcapacity, and resource sustainability

Identifieur interne : 001330 ( Main/Exploration ); précédent : 001329; suivant : 001331

Fuel price increase, subsidies, overcapacity, and resource sustainability

Auteurs : Ussif Rashid Sumaila [Canada] ; Louise Teh [Canada] ; Reg Watson [Canada] ; Peter Tyedmers [Canada] ; Daniel Pauly [Canada]

Source :

RBID : ISTEX:2484EFA5B7F6CBC893F4BEC6296921DEF3BCDC60

Abstract

Sumaila, U. R., Teh, L., Watson, R., Tyedmers, P., and Pauly, D. 2008. Fuel price increase, subsidies, overcapacity, and resource sustainability. ICES Journal of Marine Science, 65: 832840.Global fisheries are currently overcapitalized, resulting in overfishing in many of the worlds 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 US4.28.5 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.

Url:
DOI: 10.1093/icesjms/fsn070


Affiliations:


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