Analyzing fishermen behaviour face to increasing energy costs - A French case study

Increasing fuel price is becoming a major consideration in fisheries due to its contribution in total cost to produce fish. Fishermen have to reallocate production inputs according to their price, and /or accept substantial modifications in revenues. However, the impact of increasing fuel cost has to be analyzed in relation to the type of fishing gear used. The results are indeed different for trawlers (active gear) compared to netters/liners/potters (passive gear). This paper addresses to technical change between trawling and others fishing techniques, considering on the one hand, the evolution of capital valuation from 1990 to 2005, and on the second hand cost and earnings changes since 1998 to 2005. In particular, fuel expenses are examined under a special French regime implemented in 2004 and called “Fund for the prevention of risks to fishing”. If this fund has been created by producer organisations to compensate the fluctuations of energy prices, the regime is considered as a subsidies scheme fuelled by the State according to the European Union. This financial support is a major element in the examination of fishermen behaviour in France. It is shown paradoxically that fishing vessels can maintained their fuel consumption in a context of a high rising fuel cost, thanks to such a State aid. First, materials are presented, describing the state of the Bay of Biscay fisheries from 1990 to 2005. This study concerns indeed exclusively French fishing vessels operating in the Bay of Biscay. Methods used consist to study fishermen behaviour face to the fuel component. In this respect, a very simple model based on adaptative expectations is suggested and seems to suit well to represent fishermen behaviour according the fleet segment in a context of increasing energy costs. Results are presented for the estimated model. Lastly, discussion is oriented around two main economic components, earnings and costs. Fleet contribution to total earnings is appreciated according to fishing methods used. The impact of fuel cost is then characterized for constant samples (1998-2005) under the State aid scheme.