Abstract
ABSTRACT Fuel is an important input in the fishing industry’s activities, and fuel subsidies are aimed at generating more competitiveness and encouraging development. Nevertheless, they can also create incentives for fishers to exert more effort, thereby resulting in overexploitation. This paper estimates the economic value of fuel used by the Mexican fishing industry based on the elasticity of production with respect to fuel (εC) and the value of the marginal product (ρC) through the Cobb-Douglas and Trans-Log production function. The εC and ρC were estimated to be 0.52 and USD 3.1, respectively, with the latter contributing to only 8.3% of the fuel subsidy. Furthermore, a direct relationship is evident when observing the trends and the differences in means of the average price of fishery landings and the number of subsidies between 2011 and 2019. That is, the higher the prices and/or subsidies, the higher the levels of extraction. These results have important implications for fuel management and its relationship with the extraction of fishery resources, especially in countries where a subsidy policy is applied in an attempt to support the sector, but which at the same time can have a negative impact on fishery resources.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
