Economics of Aquaculture Better Management Practices

Abstract

Economics is often defi ned as the allocation of scarce resources to meet the unlimited wants and needs of human beings. This defi nition illustrates the breadth of the economics discipline and the basis for the tools of economic analysis that are used to address issues that extend well beyond business activities. In the context of environmental regulation, better management practices (BMPs), and aquaculture, economics provides theoretical and analytical models that can identify optimal or best choices given particular sets of environmental and business objectives. To an economist, pollution is an externality. An externality exists when the welfare of a fi rm or individual depends directly on activities under the control of some other fi rm or individual. Regulations may be promulgated when pollution causes damage to enough people so that attention is drawn to the problem. This is particularly true if the society is wealthy enough or if there is potential to direct resources toward alleviating damages or preventing future damages.