Thuy Thi Thanh Pham, O. Flaaten, L. T. Nguyen, N. Vu
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Subsidies—Help or Hurt? A Study from Vietnamese Fisheries
Subsidies are part of the set of management tools that governments apply to modernize their fishing fleets and enable them to engage in offshore and international fisheries. Research has shown that subsidies often lead to overcapacity and overfishing, resulting in the depletion of fish stocks. A few studies, however, have found some positive effects for particular subsidies. In this paper, we investigate a credit-linked subsidy scheme in Vietnam, which seems to be justified on the basis of economic, social, and environmental considerations. Both propensity score matching and endogenous switching regression methods are employed for analysis. The results show that the subsidies have had a positive effect on fishermen’s profitability, mainly because of increased revenue rather than reduced cost. However, the subsidies have benefited the owners of only the biggest vessels, and inefficiency in subsidized vessels may threaten resources and profitability in the long term.
期刊介绍:
Marine Resource Economics (MRE) publishes creative and scholarly economic analyses of a range of issues related to natural resource use in the global marine environment. The scope of the journal includes conceptual and empirical investigations aimed at addressing real-world oceans and coastal policy problems. Examples include studies of fisheries, aquaculture, seafood marketing and trade, marine biodiversity, marine and coastal recreation, marine pollution, offshore oil and gas, seabed mining, renewable ocean energy sources, marine transportation, coastal land use and climate adaptation, and management of estuaries and watersheds.