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Estimating Pollution Abatement Costs of Salmon Aquaculture: A Joint Production Approach

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  • Yajie Liu
  • U. Rashid Sumaila

Abstract

Salmon aquaculture generates good output (i.e., salmon) and bad output (e.g., pollution). A joint production function approach is applied to model both outputs simultaneously. Two environmental production technologies are specified, namely, regulated and unregulated technologies. Two production functions with different mapping rules are applied. Pollution abatement costs are estimated based on a series of data from the Norwegian salmon aquaculture industry. Results indicate that pollution abatement costs vary among observations and models. On average, pollution abatement cost is estimated to be about 3.5% in terms of total farmed salmon production, and 6.5% in terms of total revenue of farmed salmon.

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File URL: http://le.uwpress.org/cgi/reprint/86/3/569
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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 86 (2010)
Issue (Month): 3 ()
Pages:

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Handle: RePEc:uwp:landec:v:86:y:2010:iii:1:p569-584

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Web page: http://le.uwpress.org/

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Cited by:
  1. Rødseth, Kenneth Løvold, 2013. "Capturing the least costly way of reducing pollution: A shadow price approach," Ecological Economics, Elsevier, vol. 92(C), pages 16-24.
  2. Charles, Vincent & Kumar, Mukesh & Irene Kavitha, S., 2012. "Measuring the efficiency of assembled printed circuit boards with undesirable outputs using data envelopment analysis," International Journal of Production Economics, Elsevier, vol. 136(1), pages 194-206.

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