264
D. Whitmarsh and M.G. Palmieri
Secretan PAD, Nash T (1989) Aquaculture and Risk Management. ADCP/REP/89/41. FAO,
Rome
Stanley D (2000) The economics of the adoption of BMPs: the case of mariculture water management. Ecological Economics 35:145–155
Tran Thanh Be, Le Canh Dung, Brenan D (1999) Environmental costs of shrimp farming in the
rice-growing regions of the Mekong Delta. Aquaculture Economics and Management
3:31–42
Tveteras S (2002) Norwegian salmon aquaculture and sustainability: the relationship between
environmental quality and industry growth. Marine Resource Economics 17:121–132
Van Anrooy R, Secretan PAD, Lou Y, Roberts R, Upare M (2006) Review of the current state of
world aquaculture insurance. FAO Technical paper 493. Food and Agriculture Organisation of
the United Nations, Rome
Whitmarsh D, Wattage P (2006) Public attitudes towards the environmental impact of salmon
aquaculture in Scotland. European Environment 16(2):108–121
Ye Y, Beddington JR (1996) Bioeconomic interactions between the capture fishery and aquaculture. Marine Resource Economics 11:105–123
Younger A, Kershaw S (2004) Sewage discharge improvements in the Solent and their effect on
the shellfishery. CEFAS Shellfish News No. 17 (May)
Appendix: The Economic Appraisal of Aquaculture
Development Projects
1 Introduction
The assessment of the desirability of investment projects in aquaculture as in any
other industry should be based on a clear framework for the valuation of both the
private and social costs and benefits involved. A way to achieve this is through
economic analysis. The following section clarifies the concept of economic analysis as a social appraisal of investment projects as opposed to financial analysis
based on private costs and benefits, while Section 3 defines the procedure to be followed for the assessment of the value of an investment project. Section 4 introduces
the concept of the economic value of environmental resources. The last section
clarifies the ideas introduced earlier through an illustrative example of economic
appraisal of an investment project in a shrimp farm.
2 Financial Versus Economic Analysis of Investment Projects
Often incorrectly used as interchangeable terms, financial analysis and economic
analysis are based on different accounting systems (Burbridge et al. 2001). These
are illustrated in Table 8.1. As Burbridge et al. (2001) explain, financial analysis
deals with the input costs and the market value of production of a private investor
(e.g., fish farmer, processor, retailer, etc.), for whom the main objective is likely
to be the maximisation of profits. On the other hand, the accounting system of
D. Whitmarsh and M.G. Palmieri
Secretan PAD, Nash T (1989) Aquaculture and Risk Management. ADCP/REP/89/41. FAO,
Rome
Stanley D (2000) The economics of the adoption of BMPs: the case of mariculture water management. Ecological Economics 35:145–155
Tran Thanh Be, Le Canh Dung, Brenan D (1999) Environmental costs of shrimp farming in the
rice-growing regions of the Mekong Delta. Aquaculture Economics and Management
3:31–42
Tveteras S (2002) Norwegian salmon aquaculture and sustainability: the relationship between
environmental quality and industry growth. Marine Resource Economics 17:121–132
Van Anrooy R, Secretan PAD, Lou Y, Roberts R, Upare M (2006) Review of the current state of
world aquaculture insurance. FAO Technical paper 493. Food and Agriculture Organisation of
the United Nations, Rome
Whitmarsh D, Wattage P (2006) Public attitudes towards the environmental impact of salmon
aquaculture in Scotland. European Environment 16(2):108–121
Ye Y, Beddington JR (1996) Bioeconomic interactions between the capture fishery and aquaculture. Marine Resource Economics 11:105–123
Younger A, Kershaw S (2004) Sewage discharge improvements in the Solent and their effect on
the shellfishery. CEFAS Shellfish News No. 17 (May)
Appendix: The Economic Appraisal of Aquaculture
Development Projects
1 Introduction
The assessment of the desirability of investment projects in aquaculture as in any
other industry should be based on a clear framework for the valuation of both the
private and social costs and benefits involved. A way to achieve this is through
economic analysis. The following section clarifies the concept of economic analysis as a social appraisal of investment projects as opposed to financial analysis
based on private costs and benefits, while Section 3 defines the procedure to be followed for the assessment of the value of an investment project. Section 4 introduces
the concept of the economic value of environmental resources. The last section
clarifies the ideas introduced earlier through an illustrative example of economic
appraisal of an investment project in a shrimp farm.
2 Financial Versus Economic Analysis of Investment Projects
Often incorrectly used as interchangeable terms, financial analysis and economic
analysis are based on different accounting systems (Burbridge et al. 2001). These
are illustrated in Table 8.1. As Burbridge et al. (2001) explain, financial analysis
deals with the input costs and the market value of production of a private investor
(e.g., fish farmer, processor, retailer, etc.), for whom the main objective is likely
to be the maximisation of profits. On the other hand, the accounting system of