Impact of Technical Innovations to Protect Resources: The Case of Plaice in the EU

The paper analyses effects in the European fish sector which might occur due to technological innovations (pulse trawling in the case plaice) introduced under a regime of output controls to protect fish resources using. A partial equilibrium model (AGMEMOD) which covers among other agri-food products also 8 different fish categories is applied to conduct model simulations for the EU countries and some additional neighbouring countries European countries and the Rest of the world. The paper concentrates on plaice because the categories comprises very few fish species which allows to implement fish quotas and well as technological innovation. Therefore, this technology should contribute with the biomass protection as well as it proclaimed to increase fisher’s profits. Hence, model results indicate production increases may occur due to slight bio mass growth or cost decline until quotas are reached. Hence, all production growth will affect future prices negatively as expected growth of use in European countries is lower than production growth. The implementation of the pulse will enhance the currently existing price pressure whereas the impacts will vary significantly across the different European countries, affected by the size of the margin and the share of energy cost in total cost.