Site selection and carrying capacity in Mediterranean ... - FAO Sipam

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G. Economic aspects
This guide introduces the basic concepts and tools of environmental economics needed for site
selection and site management. Economics provides meaningful indicators and decision support tools.
It allows analysts, planners and entrepreneurs to compare different activities and their outcomes using
a common monetary benchmark. The guide will focus on the application of cost-benefit analysis
(CBA) and valuation methods since they are widely recognised and accepted by a range of decision
makers, both private and public.
Principle
Economic factors and in particular the economic dimensions of aquaculture-ecosystem interactions
should be considered for effective site selection and site management.
Guidelines
Economic tools and indicators should be used in conjunction with others (e.g.
environmental impact assessments) to enable decision making based on multiple criteria
reflecting a range of societal objectives. Decision makers often have insufficient information
to reach decisions aimed at avoiding biodiversity loss. This can be overcome through the
integrated use of economic and other decision support tools. Economic tools are important
because they reflect a range of values using widely accepted and understood monetary measures.
In order to capture the total economic value (TEV) of a given type of aquaculture at a
given site, the application of economic tools of analysis should consider a comprehensive
range of non-market and market sources of value, and direct and indirect impacts.
Economic tools should be used to value the enterprise and related businesses (e.g. packing,
transport and marketing), environmental impacts (e.g. changing water quality and biodiversity),
changes in employment, and similar economic aspects. This can be accomplished by using the
full range of methods of economic valuation.
In order to understand trade-offs among candidate users of the same ecosystem, the TEV
of aquaculture should be compared to the TEV of other sectors. This will enable decision
makers to prioritize activities and assess aquaculture against other uses in relation to its
interaction with the ecosystem. Sustainable site selection and management should result in a
higher TEV for aquaculture.
In order to develop appropriate regulatory incentives at the farm level, externalities
should be understood and quantified. Fish farming is an economic undertaking. If policy is to
encourage or discourage certain activities, farmers must be given appropriate incentives (e.g.
fees, fines, subsidies) and these incentives should reflect the externalities caused.
H. The Importance of Governance
This guide deals with the concept of governance and how it should be developed and implemented in
connection with aquaculture site selection and site management. From definition to new aspects,
characteristics of governance are described which are directly applicable to the sustainable
development of aquaculture.
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