Analysis of the impact of aquaculture subsidies on production, the case of Mexico

Abstract Subsidies are a key government tool for supporting aquaculture, aiming to boost production, competitiveness, and sustainability. However, their effectiveness remains debated. This study examines the effectiveness of subsidies in Mexican aquaculture by analyzing the evolution of subsidy allo...

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Main Authors: Daniel Peñalosa-Martinell, Francisco Javier Vergara-Solana, Humberto Villarreal Colmenares
Format: Article
Language:English
Published: Nature Portfolio 2025-05-01
Series:npj Ocean Sustainability
Online Access:https://doi.org/10.1038/s44183-025-00123-8
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author Daniel Peñalosa-Martinell
Francisco Javier Vergara-Solana
Humberto Villarreal Colmenares
author_facet Daniel Peñalosa-Martinell
Francisco Javier Vergara-Solana
Humberto Villarreal Colmenares
author_sort Daniel Peñalosa-Martinell
collection DOAJ
description Abstract Subsidies are a key government tool for supporting aquaculture, aiming to boost production, competitiveness, and sustainability. However, their effectiveness remains debated. This study examines the effectiveness of subsidies in Mexican aquaculture by analyzing the evolution of subsidy allocation from 2010 to 2021 and its impact on production with a modified Cobb-Douglas production function. During this period, total subsidy funding declined from ≈3.8 billion MXN to ≈2 billion MXN whileproduction increased by 127%, suggesting other drivers—such as technological adoption and market expansion—played a more significant role. Additionally, some subsidies may have inadvertentley reinforced unsustainable practices. These findings highlight the need for policy redesign focused on improving efficiency and sustainability. Rather than broad-based subsidies, targeted interventions—such as support for farm modernization, capacity building, and integrated financial services—may better align with long-term development goals.
format Article
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issn 2731-426X
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publishDate 2025-05-01
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series npj Ocean Sustainability
spelling doaj-art-8b1dd2411e2d4d8fb4b2a5a90e62e9f02025-08-20T03:09:34ZengNature Portfolionpj Ocean Sustainability2731-426X2025-05-014111010.1038/s44183-025-00123-8Analysis of the impact of aquaculture subsidies on production, the case of MexicoDaniel Peñalosa-Martinell0Francisco Javier Vergara-Solana1Humberto Villarreal Colmenares2Centro de Investigaciones Biológicas del Noroeste (CIBNOR), C.PUniversidad Autónoma de Baja California Sur (UABCS),C.PCentro de Investigaciones Biológicas del Noroeste (CIBNOR), C.PAbstract Subsidies are a key government tool for supporting aquaculture, aiming to boost production, competitiveness, and sustainability. However, their effectiveness remains debated. This study examines the effectiveness of subsidies in Mexican aquaculture by analyzing the evolution of subsidy allocation from 2010 to 2021 and its impact on production with a modified Cobb-Douglas production function. During this period, total subsidy funding declined from ≈3.8 billion MXN to ≈2 billion MXN whileproduction increased by 127%, suggesting other drivers—such as technological adoption and market expansion—played a more significant role. Additionally, some subsidies may have inadvertentley reinforced unsustainable practices. These findings highlight the need for policy redesign focused on improving efficiency and sustainability. Rather than broad-based subsidies, targeted interventions—such as support for farm modernization, capacity building, and integrated financial services—may better align with long-term development goals.https://doi.org/10.1038/s44183-025-00123-8
spellingShingle Daniel Peñalosa-Martinell
Francisco Javier Vergara-Solana
Humberto Villarreal Colmenares
Analysis of the impact of aquaculture subsidies on production, the case of Mexico
npj Ocean Sustainability
title Analysis of the impact of aquaculture subsidies on production, the case of Mexico
title_full Analysis of the impact of aquaculture subsidies on production, the case of Mexico
title_fullStr Analysis of the impact of aquaculture subsidies on production, the case of Mexico
title_full_unstemmed Analysis of the impact of aquaculture subsidies on production, the case of Mexico
title_short Analysis of the impact of aquaculture subsidies on production, the case of Mexico
title_sort analysis of the impact of aquaculture subsidies on production the case of mexico
url https://doi.org/10.1038/s44183-025-00123-8
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