Analysing the impacts of a reform on harmful fishery subsidies in Spain using a social accounting matrix

Abstract

The effects of discontinuing harmful fishery subsidies in Spain were analysed using a social accounting matrix. The study found that the removal of these subsidies would have negative consequences for the economy. Specifically, there would be a significant decline in the production value of marine resource industries, and industries dependent on fish and shellfish as inputs would experience increased production costs. The exports, mainly to EU countries, would also be impacted, and certain marine resource sectors would experience significant job losses. Fishing families would suffer the greatest reduction in income once subsidies are removed. However, there is potential to mitigate most of the negative impacts by redirecting the removed subsidies, as it is shown for the case of their redirection to research and development industries. The findings of this study provide valuable insights for EU policymakers in implementing specific policies to address the potential consequences on affected sectors, families, and employers as part of the next European strategy, Horizon 2021–2027.