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Economic Impact of Eliminating the Fuel Tax Exemption in the EU Fishing Fleet

Author

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  • Natacha Carvalho

    (Joint Research Centre, European Commission, 21027 Ispra, Italy)

  • Jordi Guillen

    (Joint Research Centre, European Commission, 21027 Ispra, Italy)

Abstract

The EU-27 fishing fleet consumed 2.02 billion liters of fuel to catch 4.48 million tons of fish, valued at €6.7 billion in 2018. The profitability of the EU fishing fleet shows an increasing trend, partly due to the improvements in the energy efficiency and recovery of fish stocks in the North-east Atlantic. Fuel is one of the main expenses fishing fleets have, and therefore, their economic performance remains highly dependent on the fuel price, even if they benefit from a fuel tax exemption. The adoption of the European Green Deal, the revision of the Energy Taxation Directive (ETD), the ongoing World Trade Organization (WTO) negotiation to prohibit harmful fisheries subsidies, and general public opinion are putting pressure to eliminate this tax exemption. This analysis investigates the impacts of the potential elimination of the fuel tax exemption across the different EU fishing fleets and it is discussed to what extent the small-scale, large-scale and distant-water fleets could be affected. This analysis is useful to inform policy-makers and stakeholders on the consequences of the potential elimination of the fuel tax exemption, as well as to discuss potential measures to mitigate the socioeconomic impacts arising from this eventual change in the current regulatory framework.

Suggested Citation

  • Natacha Carvalho & Jordi Guillen, 2021. "Economic Impact of Eliminating the Fuel Tax Exemption in the EU Fishing Fleet," Sustainability, MDPI, vol. 13(5), pages 1-15, March.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:5:p:2719-:d:509557
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    References listed on IDEAS

    as
    1. World Bank & Food and Agriculture Organization, 2009. "The Sunken Billions : The Economic Justification for Fisheries Reform," World Bank Publications - Books, The World Bank Group, number 2596.
    2. Roger Martini, 2012. "Fuel Tax Concessions in the Fisheries Sector," OECD Food, Agriculture and Fisheries Papers 56, OECD Publishing.
    3. Cheilari, Anna & Guillen, Jordi & Damalas, Dimitrios & Barbas, Thomas, 2013. "Effects of the fuel price crisis on the energy efficiency and the economic performance of the European Union fishing fleets," Marine Policy, Elsevier, vol. 40(C), pages 18-24.
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