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Hooked on Fuel - Estimating the fuel price elasticity of effort in the EU fishing fleet.

Håkansson, Isabella LU and Thorell, Rakel LU (2025) NEKH03 20251
Department of Economics
Abstract (Swedish)
This thesis examines the contemporaneous effect of a fuel price increase on the fishing effort in the EU’s fleet, comparing the small-scale fleet segment and the large-scale fleet segment. Using quarterly country-level panel data on fishing effort and fuel prices from 2021 to 2023, coefficients for the fuel price elasticity of effort are estimated through two fixed effects regressions using OLS. Theory suggests a reduction in effort in both fleet segments, with a stronger response expected from the large-scale fleet. The results indicate that a fuel price increase is associated with reduced effort for the small-scale fleet segment, while the large-scale fleet segment responds with increased effort. The contrasting results suggest... (More)
This thesis examines the contemporaneous effect of a fuel price increase on the fishing effort in the EU’s fleet, comparing the small-scale fleet segment and the large-scale fleet segment. Using quarterly country-level panel data on fishing effort and fuel prices from 2021 to 2023, coefficients for the fuel price elasticity of effort are estimated through two fixed effects regressions using OLS. Theory suggests a reduction in effort in both fleet segments, with a stronger response expected from the large-scale fleet. The results indicate that a fuel price increase is associated with reduced effort for the small-scale fleet segment, while the large-scale fleet segment responds with increased effort. The contrasting results suggest structural differences, including operational patterns, ownership structures and quota management systems to be some of the main reasons behind the differing effort responses. (Less)
Please use this url to cite or link to this publication:
author
Håkansson, Isabella LU and Thorell, Rakel LU
supervisor
organization
course
NEKH03 20251
year
type
M2 - Bachelor Degree
subject
keywords
Fuel price elasticity, fishing effort, small-scale coastal fleet, large-scale fleet, EU fishing fleet
language
English
id
9197874
date added to LUP
2025-09-12 09:20:17
date last changed
2025-09-12 09:20:17
@misc{9197874,
  abstract     = {{This thesis examines the contemporaneous effect of a fuel price increase on the fishing effort in the EU’s fleet, comparing the small-scale fleet segment and the large-scale fleet segment. Using quarterly country-level panel data on fishing effort and fuel prices from 2021 to 2023, coefficients for the fuel price elasticity of effort are estimated through two fixed effects regressions using OLS. Theory suggests a reduction in effort in both fleet segments, with a stronger response expected from the large-scale fleet. The results indicate that a fuel price increase is associated with reduced effort for the small-scale fleet segment, while the large-scale fleet segment responds with increased effort. The contrasting results suggest structural differences, including operational patterns, ownership structures and quota management systems to be some of the main reasons behind the differing effort responses.}},
  author       = {{Håkansson, Isabella and Thorell, Rakel}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Hooked on Fuel - Estimating the fuel price elasticity of effort in the EU fishing fleet.}},
  year         = {{2025}},
}