Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
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Financial Tools and Public Dilemmas Location: B131 Session Chair: Adrien Fabre, CNRS - CIRED | |
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Subsidizing the tragedy of the commons: Fuel subsidies modify fishing behavior and drive overfishing 1: Department of Environmental Science and Policy, Rosenstiel School of Marine, Atmospheric & Earth Science, University of Miami, United States of America; 2: Frost Institute for Data Science and Computing, University of Miami, United States of America; 3: Bren School of Environmental Science & Management, University of California Santa Barbara, United States of America; 4: Department of Economics, University of California Santa Barbara, United States of America Fuel subsidies to the fishing industry are widely considered to be one of the leading drivers of overfishing, which has prompted calls for a global reform. However, rigorous empirical evidence quantifying the behavioral and production responses to fuel subsidies remains limited. We address this gap by analyzing 14 years of high-resolution data on fisher-level fuel subsidy allocations, fishing activity, and production in Mexico’s shrimp trawl fleet. Leveraging year-to-year variation in Mexico’s subsidy policy, we find that receiving a fuel subsidy increases fishing effort by 40.7%, with similar responses for fished area and landed catch. These responses scale with the size of the subsidy: a 1% increase in the subsidy received raises fishing effort, area fished, and landings by 0.14% to 0.20%. Mexico's abrupt subsidy elimination in 2020 reduced fishing pressure through two channels: a 30% reduction in fleet size as marginal economic units exited, and lower fishing time among the economic units that remained. Together, these results identify fuel subsidies as a major driver of fishing pressure: roughly 37% of fishing effort and two-thirds of landings in this fleet are attributable to subsidies, supporting ongoing global efforts to eliminate them. | |