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The local effects of an innovation: Evidence from the French fish market

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  • Gobillon, Laurent
  • Wolff, François-Charles

Abstract

In this paper, we investigate the effects of the Danish seine which was introduced for a subsample of vessels on a single wholesale fish market in France. The goal was to mitigate the decrease in vessel profits due to the rise of gasoline prices. Estimations are conducted from transaction data over the 2009–2011 period during which the innovation was introduced. Using a difference-in-differences approach around the discontinuity, we find that the innovation has a large positive effect on quality, prices and profit of treated vessels. However, a shift in caught fish species is observed and new targeted species are fished very intensively. This suggests that quota management is needed to ensure the sustainability of fishing practices involving the new technology in the long run.

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  • Gobillon, Laurent & Wolff, François-Charles, 2020. "The local effects of an innovation: Evidence from the French fish market," Ecological Economics, Elsevier, vol. 171(C).
    • Handle: RePEc:eee:ecolec:v:171:y:2020:i:c:s0921800919311954
    DOI: 10.1016/j.ecolecon.2020.106594
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    Cited by:

    1. Hyungsik Roger Moon & Martin Weidner, 2018. "Nuclear Norm Regularized Estimation of Panel Regression Models," Papers 1810.10987, arXiv.org, revised Jun 2023.
    2. Vasse, Victor & Wolff, François-Charles, 2022. "Cooperation and sales revenue of fisheries: Evidence from France," Ecological Economics, Elsevier, vol. 198(C).
    3. Vivek F. Farias & Andrew A. Li & Tianyi Peng, 2021. "Learning Treatment Effects in Panels with General Intervention Patterns," Papers 2106.02780, arXiv.org, revised Mar 2023.
    4. Victor Vasse & François-Charles Wolff, 2022. "Cooperation and sales revenue of fisheries," Post-Print hal-03913069, HAL.

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    More about this item

    Keywords

    Fish; Innovation; Product quality; Product prices; Discontinuity; Difference in differences;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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