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Estimating the impacts of eliminating fisheries subsidies on the small island economy of the Azores


  • Carvalho, Natacha
  • Rege, Sameer
  • Fortuna, Mário
  • Isidro, Eduardo
  • Edwards-Jones, Gareth


A major problem affecting world fisheries today is overcapacity of which overfishing is both a cause and a consequence. There is a general consensus that fisheries subsidies cause great harm to the resource by exacerbating the problems resulting from the common resource issues of fisheries leading to overexploitation of the resource through a new set of perverse incentives. Many now advocate that subsidies should gradually be terminated, and that capacity enhancing and fuel subsidies should be terminated immediately. On account of the global fisheries crises, highly subsidised fisheries and the anticipated reforms of the European Union's Common Fisheries Policy this study aimed to estimate the impact of eliminating fisheries subsidies on various macro and micro economic variables pertaining to the regional economy of the Azores using a dynamic computable general equilibrium model based on a social accounting matrix. The simulation results suggest that reduction, and in particular, elimination of fisheries subsidies would have a substantial effect on the region, however, the negative social and economic effects would be largely confined to the fishing sector. Conversely, the augmentation of fishery subsidies would benefit the fishing sector with an overall adverse effect on the rest of the economy.

Suggested Citation

  • Carvalho, Natacha & Rege, Sameer & Fortuna, Mário & Isidro, Eduardo & Edwards-Jones, Gareth, 2011. "Estimating the impacts of eliminating fisheries subsidies on the small island economy of the Azores," Ecological Economics, Elsevier, vol. 70(10), pages 1822-1830, August.
  • Handle: RePEc:eee:ecolec:v:70:y:2011:i:10:p:1822-1830

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    References listed on IDEAS

    1. JINJI Naoto, 2010. "Subsidies, Fisheries Management, and International Trade," Discussion papers 10023, Research Institute of Economy, Trade and Industry (RIETI).
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    3. Clark, Colin W. & Munro, Gordon R. & Sumaila, Ussif Rashid, 2005. "Subsidies, buybacks, and sustainable fisheries," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 47-58, July.
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    6. David Finnoff & John Tschirhart, 2003. "Protecting an Endangered Species While Harvesting Its Prey in a General Equilibrium Ecosystem Model," Land Economics, University of Wisconsin Press, vol. 79(2), pages 160-180.
    7. Bhat, Mahadev G. & Bhatta, Ramachandra, 2006. "Regional economic impacts of limited entry fishery management: an application of dynamic input output model," Environment and Development Economics, Cambridge University Press, vol. 11(06), pages 709-728, December.
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    Cited by:

    1. Wang, Ying & Hu, Jianfeng & Pan, Haoran & Li, Shiyu & Failler, Pierre, 2016. "An integrated model for marine fishery management in the Pearl River Estuary: Linking socio-economic systems and ecosystems," Marine Policy, Elsevier, vol. 64(C), pages 135-147.
    2. Surís-Regueiro, Juan C. & Garza-Gil, M. Dolores & Varela-Lafuente, Manuel M., 2014. "Socio-economic quantification of fishing in a European urban area: The case of Vigo," Marine Policy, Elsevier, vol. 43(C), pages 347-358.
    3. Villasante, Sebastian & Pierce, Graham J. & Pita, Cristina & Guimeráns, César Pazos & Garcia Rodrigues, João & Antelo, Manel & Da Rocha, José María & Cutrín, Javier García & Hastie, Lee C. & Veiga, Pe, 2016. "Fishers' perceptions about the EU discards policy and its economic impact on small-scale fisheries in Galicia (North West Spain)," Ecological Economics, Elsevier, vol. 130(C), pages 130-138.
    4. Basak Bayramoglu & Brian Copeland & Jean-François Jacques, 2016. "Trade and Fisheries Subsidies," Working Papers 2016.08, FAERE - French Association of Environmental and Resource Economists.


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