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A Comparative Study of Salmon Aquaculture Site Attribution by Public Agencies in Eastern Canada and, Maine, USA (Hoop Jumping vs. Opportunity Cost pricing)

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  • We focus on problems of access to marine sites for aquaculture in different countries, particularly in Maine, U.S.A. and Canada. The main question examined is how public natural goods (marine space) are allocated for aquaculture activities. Using ideas from law and economics, as well as institutional economics, we looked at legal frameworks of different countries to see how they contribute to the allocation of marine sites. Aquaculture sites are means of production that generate rents. Who ultimately gets the rent may depend upon the rules of attribution. Like land, higher quality sites become scarce sooner, leading the industry to seek solutions such as open ocean aquaculture. However, this also makes entry deterrence an attractive strategy as well. Maximising rents may not even be an objective for public managers, despite arguments by some economists that encouraging more transparency and competitive bidding for public goods like aquaculture sites is more efficient. It is therefore reasonable to explain why these recommendation are not more routinely followed by public managers. One hypothesis is that both public managers and those being regulated prefer administrative approaches to site attribution rather than open competitive pricing systems. Though property rights to aquaculture lease sites are evolving in most countries, the history of resource allocation in other sectors shows that the first-comers tend to form rules that reinforce their position, as long as they are able to extract a benefit over the costs of deterrence. For this reason we explore legal frameworks that afford the possibility of improvements in allocation and use efficiences.
  • Keywords: Aquaculture Economics and Management, Aquaculture, allocation, rents, opportunity cost, sites, Fisheries Economics
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  • Boudribila, Youssef, James R. Wilson. 2004. A Comparative Study of Salmon Aquaculture Site Attribution by Public Agencies in Eastern Canada and, Maine, USA (Hoop Jumping vs. Opportunity Cost pricing). Peer Review: No. In: Proceedings of the Twelfth Biennial Conference of the International Institute of Fisheries Economics & Trade, July 20-30, 2004, Tokyo, Japan: What are Responsible Fisheries? Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2004. CD ROM. ISBN 0-9763432-0-7
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