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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.

Suggested Citation

  • Yajie Liu & U. Rashid Sumaila, 2010. "Estimating Pollution Abatement Costs of Salmon Aquaculture: A Joint Production Approach," Land Economics, University of Wisconsin Press, vol. 86(3).
    • Handle: RePEc:uwp:landec:v:86:y:2010:iii:1:p569-584
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Kenneth Rødseth, 2014. "Efficiency measurement when producers control pollutants: a non-parametric approach," Journal of Productivity Analysis, Springer, vol. 42(2), pages 211-223, October.
    2. Nielsen, Rasmus, 2012. "Introducing individual transferable quotas on nitrogen in Danish fresh water aquaculture: Production and profitability gains," Ecological Economics, Elsevier, vol. 75(C), pages 83-90.
    3. Surender Kumar & Rakesh Kumar Jain, 2021. "Cost of CO2 emission mitigation and its decomposition: evidence from coal-fired thermal power sector in India," Empirical Economics, Springer, vol. 61(2), pages 693-717, August.
    4. 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.
    5. Liu, Haiying & Owens, Katharine A. & Yang, Ke & Zhang, Chunhong, 2020. "Pollution abatement costs and technical changes under different environmental regulations," China Economic Review, Elsevier, vol. 62(C).
    6. Ekaterina Nikitina, 2019. "Opportunity Cost of Environmental Conservation in the Presence of Externalities: Application to the Farmed and Wild Salmon Trade-Off in Norway," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(2), pages 679-696, June.
    7. Do, Huu-Luat & Ho, Thong Quoc, 2022. "Climate change adaptation strategies and shrimp aquaculture: Empirical evidence from the Mekong Delta of Vietnam," Ecological Economics, Elsevier, vol. 196(C).
    8. Rasmus Nielsen & Jesper Levring Andersen & Peter Bogetoft, 2014. "Dynamic Reallocation of Marketable Nitrogen Emission Permits in Danish Freshwater Aquaculture," Marine Resource Economics, University of Chicago Press, vol. 29(3), pages 219-239.
    9. 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.
    10. Hampf, Benjamin & Rødseth, Kenneth Løvold, 2019. "Environmental efficiency measurement with heterogeneous input quality: A nonparametric analysis of U.S. power plants," Energy Economics, Elsevier, vol. 81(C), pages 610-625.

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    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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