Subsidies, public goods, and external benefits in fisheries

The fisheries subsidy discussion has largely overlooked the increased welfare for society from Pigouvian subsidies that increase the supply of and investment in public goods when there are external benefits and free riding. Important fisheries public goods and external benefits include knowledge associated with new technology for “target” species and “bycatch” reduction, research and development for new technology, and ecosystem services and biodiversity. Careful definition of subsidies also requires consideration of the counter-factual or what would have happened without the action to which the fishery “subsidy” is attributed. Subsidies in the Western and Central Pacific tuna fishery are evaluated according to these and other criteria.