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Biosecurity vs. Profits: A Multi-Objective Model for the Aquaculture Industry Pubblico Deposited

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Abstract
  • In this paper we measure the value of sanitary restrictions in terms of forgone profits. For this we model the trade-off between biosecurity and profits in the salmon aquaculture industry. We introduce the concept of “sanitary desirable volume” of the salmon industry, as a goal in a bi-objective model. We are able to optimize this model, using base information relevant for the Los Lagos Region in Chile, and identify a Pareto Frontier. Within this setting we analyze the shadow price of one objective in terms of the other, the effect of changes in the administrative regulations that limit fish density in the farms, and of prices on the Pareto frontier. We find that the effect of sanitary restrictions in terms of forgone profits is quantitatively important and that this effect is dependent on the level of sanitary restrictions and on the relative product prices. This has important implications for the design of sanitary restrictions. The level of the sanitary desirable volume should be determined carefully to avoid costly excessive regulation. Moreover, market conditions can also affect the optimal level of regulation.
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  • Dresdner-Cid, Jorge and Manuel Estay-Montecinos. 2015. Biosecurity vs. Profits: A Multi-Objective Model for the Aquaculture Industry.In: Proceedings of the Eighth Biennial Forum of the North American Association of Fisheries Economists, May 20-22, 2015, Ketchikan, Alaska: Economic Sustainability, Fishing Communities and Working Waterfronts. Compiled by Ann L. Shriver and Melissa Errend. North American Association of Fisheries Economists, Corvallis, Oregon, USA, 2015.
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  • Alaska Sea Grant, North Pacific Fishery Management Council, North Pacific Research Board, Northern Economics, Pollock Conservation Cooperative Research Center, Rasmuson Foundation, University of Alaska Fairbanks, School of Fisheries and Ocean Sciences, University of Alaska Southeast, Ketchikan
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