A number of studies have considered the economic performance of various types
of offshore aquaculture primarily from the farm or business side. Some also provide
more general frameworks or analyses to the profitability of offshore aquaculture. All
these contributions fits into the social typology category of Direct benefits of
aquaculture and their distribution. Jin et al. (2005) provides a risk-assessment
model of open-ocean aquaculture, and present a case study of farming of Atlantic
cod farming in New England, USA. Knapp (2008a) provides an analytical approach
to the economic potential of offshore aquaculture in the United States of America,
while Knapp (2008b) consider the potential employment and income which might
be created, directly and indirectly, from U.S. offshore aquaculture. Kim et al. (2008)
investigate the investment decision of offshore aquaculture under risk, for Rock
Bream aquaculture in Korea.
1 Kam et al. (2003) gave an early case study of
offshore Pacific Threadfin aquaculture in Hawaii. Kim et al. (2008) considered the
economic viability of offshore Rock Bream aquaculture in Korea, and later (Kim
and Lipton 2011) provided a comparative economic analysis of inshore and offshore Rock Bream aquaculture in Korea. Kim (2012) provides an economic feasibility study of mackerel offshore aquaculture production in Korea (see footnote 1).
A recent study of the economic performance of Italian offshore mariculture by
Di Trapani et al. (2014) evaluated the economic performance of an offshore production system for sea bass compared to an inshore one, based on interviews with
actual, “representative” farmers. They compared the net present value, discounted
payback time, and the internal rate of return. They found better economic profitability of offshore farming than inshore, even if sensitivity analysis revealed that
financial indicators of both aquaculture production systems have been very sensitive to market condition changes. They also ran Monte Carlo simulations to test the
robustness of their analysis. They concluded that an “offshore production system
could represent an opportunity for fish farmers to increase their profitability,
obtaining a more sustainable production and avoiding possible conflicts with other
human activities in coastal areas.” The authors have, however, not specifically
investigated possible conflicts with other activities, only the financial performance.
A few scientific contributions have considered the legislative side required for
offshore aquaculture in various countries, fitting into the social dimensions type
Organization of and participation in planning for aquaculture. Stickney et al.
(2006) considered the interest in open ocean aquaculture in the USA, the regulatory
environment, and the potential for sustainable development. They concluded that in
the time of their study there was little interest in commercial offshore aquaculture,
largely because of the lack of a formal regulatory structure. Cicin-Sain et al. (2005)
in a technical report considered requirements and proposed a legislative framework
for offshore aquaculture in the USA, including planning and site assessment,
leasing and permitting for sites, and monitoring and compliance and enforcement.
They briefly also considered the economic potential and possible environmental
effects. Forster (2008) tried to answer the question “What new law, if any, is needed
1
Paper in Korean, abstract in English.
8 The Socio-economic Dimensions of Offshore …
175
of offshore aquaculture primarily from the farm or business side. Some also provide
more general frameworks or analyses to the profitability of offshore aquaculture. All
these contributions fits into the social typology category of Direct benefits of
aquaculture and their distribution. Jin et al. (2005) provides a risk-assessment
model of open-ocean aquaculture, and present a case study of farming of Atlantic
cod farming in New England, USA. Knapp (2008a) provides an analytical approach
to the economic potential of offshore aquaculture in the United States of America,
while Knapp (2008b) consider the potential employment and income which might
be created, directly and indirectly, from U.S. offshore aquaculture. Kim et al. (2008)
investigate the investment decision of offshore aquaculture under risk, for Rock
Bream aquaculture in Korea.
1 Kam et al. (2003) gave an early case study of
offshore Pacific Threadfin aquaculture in Hawaii. Kim et al. (2008) considered the
economic viability of offshore Rock Bream aquaculture in Korea, and later (Kim
and Lipton 2011) provided a comparative economic analysis of inshore and offshore Rock Bream aquaculture in Korea. Kim (2012) provides an economic feasibility study of mackerel offshore aquaculture production in Korea (see footnote 1).
A recent study of the economic performance of Italian offshore mariculture by
Di Trapani et al. (2014) evaluated the economic performance of an offshore production system for sea bass compared to an inshore one, based on interviews with
actual, “representative” farmers. They compared the net present value, discounted
payback time, and the internal rate of return. They found better economic profitability of offshore farming than inshore, even if sensitivity analysis revealed that
financial indicators of both aquaculture production systems have been very sensitive to market condition changes. They also ran Monte Carlo simulations to test the
robustness of their analysis. They concluded that an “offshore production system
could represent an opportunity for fish farmers to increase their profitability,
obtaining a more sustainable production and avoiding possible conflicts with other
human activities in coastal areas.” The authors have, however, not specifically
investigated possible conflicts with other activities, only the financial performance.
A few scientific contributions have considered the legislative side required for
offshore aquaculture in various countries, fitting into the social dimensions type
Organization of and participation in planning for aquaculture. Stickney et al.
(2006) considered the interest in open ocean aquaculture in the USA, the regulatory
environment, and the potential for sustainable development. They concluded that in
the time of their study there was little interest in commercial offshore aquaculture,
largely because of the lack of a formal regulatory structure. Cicin-Sain et al. (2005)
in a technical report considered requirements and proposed a legislative framework
for offshore aquaculture in the USA, including planning and site assessment,
leasing and permitting for sites, and monitoring and compliance and enforcement.
They briefly also considered the economic potential and possible environmental
effects. Forster (2008) tried to answer the question “What new law, if any, is needed
1
Paper in Korean, abstract in English.
8 The Socio-economic Dimensions of Offshore …
175