also takes into consideration the output of production models in order to estimate
costs of production, and it is currently being enhanced with variables of socioeconomic impact. Net present value (NPV), internal rate of return (IRR), yearly
net profit margin, and several other KPIs and financial metrics are produced from this
model aiming at a more complete investment analysis that will support a solid
scientific planning and decision-making procedure for aquaculture.
6.3 Socio-economic and Environmental Monetization
Extension in Aquaculture Management Tools
A core advancement within the scope of the BlueBRIDGE project is the integration
of social, economic, and environmental variables in the decision support tools
developed for aquaculture production. The research on the modeling of aquaculture
production is ongoing. Available models look at the financial and economic aspects
of aquaculture, while others are developed along the lines of cost-driven production.
The work completed for BlueBRIDGE brings socio-economic and environmental
impact into consideration when analyzing aquaculture operation performance. The
multi- and intradisciplinary work completed for the project responds to challenges of
identifying, conceptualizing, and monetizing the social and environmental impact of
aquaculture. Once identified these model parameters have been combined in a
workable way with specific techno-economic and production models of Blue Economy, considering data and computational resources in reach.
For this the research team has undertaken a thorough social cost benefit analysis
(SCBA) in which the costs and benefits of fish production are identified, modeled,
evaluated, and monetized. SCBA aims at incorporating the effects that extend
beyond private costs and revenues and regard the broader impact which aquaculture
has on the society. The SCBA systematically identifies, organizes, and valuates the
benefits and the costs of aquaculture. The approach is detailed in Tsani
and Koundouri (2018) and it aims at (i) extending the identification of the costs
and benefits of aquaculture beyond pure financial metrics and monetary terms and
(ii) extending the modeling of aquaculture production beyond the quantification of
private costs and benefits and including in the analysis the social costs and benefits
associated with aquaculture (a graphical summary of the methodology is provided in
Fig. 6.1). The modeling approach consists of three parts: (i) ecological part where the
modeled relationships aim at capturing the interactions of aquaculture and associated
costs and benefits as regards the environment (CO 2 emissions, water pollution,
spatial limitations etc.); (ii) economic part which makes provision for the explicit
incorporations of economic determinants in production models; and (iii) social part
that introduces social costs and benefits in the aquaculture production and management decision process. Appropriate relationships are formulated which quantify and
introduce the socio-economic and environmental costs and benefits of aquaculture
into the decision support system of aquaculture management.
6 Techno- and Socio-economic Models of Production with Application to. . .
99
costs of production, and it is currently being enhanced with variables of socioeconomic impact. Net present value (NPV), internal rate of return (IRR), yearly
net profit margin, and several other KPIs and financial metrics are produced from this
model aiming at a more complete investment analysis that will support a solid
scientific planning and decision-making procedure for aquaculture.
6.3 Socio-economic and Environmental Monetization
Extension in Aquaculture Management Tools
A core advancement within the scope of the BlueBRIDGE project is the integration
of social, economic, and environmental variables in the decision support tools
developed for aquaculture production. The research on the modeling of aquaculture
production is ongoing. Available models look at the financial and economic aspects
of aquaculture, while others are developed along the lines of cost-driven production.
The work completed for BlueBRIDGE brings socio-economic and environmental
impact into consideration when analyzing aquaculture operation performance. The
multi- and intradisciplinary work completed for the project responds to challenges of
identifying, conceptualizing, and monetizing the social and environmental impact of
aquaculture. Once identified these model parameters have been combined in a
workable way with specific techno-economic and production models of Blue Economy, considering data and computational resources in reach.
For this the research team has undertaken a thorough social cost benefit analysis
(SCBA) in which the costs and benefits of fish production are identified, modeled,
evaluated, and monetized. SCBA aims at incorporating the effects that extend
beyond private costs and revenues and regard the broader impact which aquaculture
has on the society. The SCBA systematically identifies, organizes, and valuates the
benefits and the costs of aquaculture. The approach is detailed in Tsani
and Koundouri (2018) and it aims at (i) extending the identification of the costs
and benefits of aquaculture beyond pure financial metrics and monetary terms and
(ii) extending the modeling of aquaculture production beyond the quantification of
private costs and benefits and including in the analysis the social costs and benefits
associated with aquaculture (a graphical summary of the methodology is provided in
Fig. 6.1). The modeling approach consists of three parts: (i) ecological part where the
modeled relationships aim at capturing the interactions of aquaculture and associated
costs and benefits as regards the environment (CO 2 emissions, water pollution,
spatial limitations etc.); (ii) economic part which makes provision for the explicit
incorporations of economic determinants in production models; and (iii) social part
that introduces social costs and benefits in the aquaculture production and management decision process. Appropriate relationships are formulated which quantify and
introduce the socio-economic and environmental costs and benefits of aquaculture
into the decision support system of aquaculture management.
6 Techno- and Socio-economic Models of Production with Application to. . .
99