17. Enviromental issues

Question 1

What is aquaculture?

Answer 1

Aquaculture is the farming of aquatic organisms such as fish, shellfish, and aquatic plants in controlled or semi-controlled environments.

Akvakultur er oppdrett av vannlevende organismer som fisk, skalldyr og vannplanter i kontrollerte eller halvkontrollerte miljøer.

Question 2

What is the contribution of aquaculture to the global food system?

Answer 2

• important contributor to the global food system
• increasing demand for seafood.
• It is the fastest-growing sector in animal protein production.

Question 3

What are the negative impacts of aquaculture on the environment?

Answer 3

Aquaculture has several negative impacts on the environment, such as
a) organic waste,
b) antibiotics and chemicals,
c) salmon escapees,
d) sea lice,
e) increased demand for feed that threatens the associated capture fisheries

Question 4

What are some of the environmental impacts of salmon farming?

Answer 4

: The environmental impacts of salmon farming include organic waste, antibiotics and chemicals, salmon escapees, and sea lice.

Question 5

What is the market failure in aquaculture?

Answer 5

: The market failure in aquaculture is the failure of the market to allocate resources efficiently to maximize social welfare, which is caused by
a) externalities,
b) public goods,
c) common pool resources,
d)) asymmetric information,
e) uncertainty.

Question 6

How can market failures in aquaculture be solved?

Answer 6

Market failures in aquaculture can be solved by internalizing the benefits/costs through government regulations, taxes and subsidies, and tradable permits.

Property rights -> Open Access Problem

Information campaigns, such as labeling, can be used to address asymmetric information.

Question 7

What is non-market valuation?

Answer 7

Non-market valuation estimates the economic value of environmental goods and services, such as clean air or biodiversity, by asking individuals about their preferences and willingness to pay for them. This information can be used to inform policy decisions and market interventions.

Question 8

Why is limited research on aquaculture regulation in developing countries a concern?

Answer 8

Limited research on aquaculture regulation in developing countries is a concern because these countries often lack the resources to implement effective regulations, leading to negative environmental impacts and threatening the sustainability of aquaculture.

Also, poor –> incentive to prioritize high gain NOW (but not smart in the long term)

Question 9

What are the two types of aquaculture?

Answer 9

1. Extensive
2. Intensive

Question 10

What is Extensive Aquaculture?

Answer 10

Extensive aquaculture is a low-input system that uses ponds, lakes, or other water bodies and requires minimal management or interventions, low population densities, and feeds on natural food sources.

Question 11

What is Intensive Aquaculture?

Answer 11

Intensive aquaculture is a high-input system that uses tanks, cages, or other confined spaces and requires more management or interventions such as water quality and temperature control, high population densities, and feeds with formulated diets.

Question 12

How can organic waste be damaging to the enviroment?

Answer 12

Uneaten food, feces, and other organic waste from aquaculture facilities can accumulate on the seafloor, leading to the degradation of water quality and the surrounding ecosystem. The decomposition of this waste consumes oxygen, which can create low-oxygen “dead zones” that are harmful to marine life.

Question 13

How can antibiotics and chemicals be damaging to the environment?

Answer 13

The use of antibiotics, pesticides, and other chemicals in aquaculture can lead to the contamination of water bodies and the development of antibiotic-resistant bacteria. This poses risks to both the environment and human health, as these resistant bacteria can be transferred to humans through the consumption of contaminated seafood.

Question 14

Salmon Escapes

Answer 14

When farmed salmon escape from their pens, they can compete with wild salmon for resources, interbreed with wild populations, and spread diseases. This can result in the decline of wild salmon populations and the overall health of the ecosystem.

Question 15

Sea Lice

Answer 15

Sea lice are parasitic crustaceans that can infest farmed fish, particularly salmon. High concentrations of fish in aquaculture facilities can lead to increased sea lice infestations, which can then spread to wild populations. This can have detrimental effects on both farmed and wild fish stocks.

Question 16

Increased demand for feed: how can it be a problem for the enviroment

Answer 16

Many farmed fish species, such as salmon, are carnivorous and require fishmeal and fish oil as feed. The increased demand for these products can put pressure on wild fish populations that are harvested to produce the feed. Overfishing of these species can lead to the depletion of fish stocks and the disruption of marine ecosystems.

Question 17

How can externalities lead to market failure

Answer 17

Externalities are the costs or benefits of an activity that affect third parties not directly involved in the activity. In aquaculture, negative externalities include pollution, disease spread, and damage to wild fish populations. These costs are often not borne by the aquaculture producers, leading to overproduction and an inefficient allocation of resources. If these external costs were internalized, production levels might decrease, and more sustainable practices could be adopted.

Eksternaliteter er kostnadene eller fordelene ved en aktivitet som påvirker tredjeparter som ikke er direkte involvert i aktiviteten. I akvakultur inkluderer negative eksternaliteter forurensning, sykdomsspredning og skade på villfiskbestander. Disse kostnadene bæres ofte ikke av akvakulturprodusentene, noe som fører til overproduksjon og ineffektiv allokering av ressurser. Hvis disse eksterne kostnadene ble internalisert, kan produksjonsnivået reduseres, og mer bærekraftig praksis kan tas i bruk.

Question 18

Public goods -> market failure

Answer 18

Public goods are non-excludable and non-rivalrous, meaning that their use by one individual does not prevent others from using them and that it is difficult to exclude people from benefiting from them. In the context of aquaculture, the marine environment, clean water, and healthy ecosystems can be considered public goods. Overexploitation and degradation of these resources can lead to market failure, as individual producers do not bear the full costs of their actions.

Question 19

Common pool resources -> market failure

Answer 19

Common pool resources are resources that are rivalrous but difficult to exclude people from using. Fish stocks and other marine resources are examples of common pool resources. Without proper regulation and management, aquaculture operators may overharvest these resources to maximize their profits, leading to overexploitation and depletion, which is known as the “tragedy of the commons.”

Question 20

Asymmetric information -> market failure

Answer 20

Asymmetric information occurs when one party in a transaction has more or better information than the other party. In the aquaculture market, producers may have more information about the environmental and health risks associated with their products than consumers. This can lead to market failure, as consumers may unwittingly purchase products that have negative impacts on the environment or their health, resulting in overconsumption of unsustainable products.

Question 21

Uncertainty

Answer 21

Uncertainty in aquaculture can arise from various sources, such as fluctuations in fish stocks, changing environmental conditions, and unpredictable market demand. This uncertainty can lead to market failure, as producers and consumers may make suboptimal decisions based on incomplete or inaccurate information. For example, producers may overinvest in aquaculture facilities due to overly optimistic expectations, leading to overproduction and negative environmental consequences.