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Interventions can backfire

Interventions aimed at increasing fishers' profit margins (e.g. by providing subsidized fishing gear, facilities, and so on) can result in new fishers joining the fishery from other vulnerable regions. Even though supporting more fishers is a social benefit at the national level, the added effort threatens fish stocks. In the long run, it is very easy for productivity-aimed interventions to disrupt the stock-fishers equilibrium, leading to a stock collapse and thus having an overall negative effect in the end.

Change the subsidies provided to municipal fishers to see how the fishing population, and fish stocks, are affected.

Full Cost
Half Cost

In the absence of a subsidy fishers make a small profit from fishing.

With a subsidy, fishing profits rise sharply at first but then collapse due to waning fish stocks.

The number of people fishing is more or less stable.

New people are joining the fishery, attracted by profits.

And fish stocks are not threatened yet.

Causing fish stocks to drop catastrophically.