Neoliberal economists argue that the market provides the most efficient mechanism to address externalities. Theoretically then, the market value of a commodity should show a correlation with any changes in social and ecological performance. Alternatively, if the social and ecological costs of production are being externalized (not addressed by the market) then it is expected that the social and ecological costs of production would not be reflected in the market price. This study examined the extent to which social and environmental costs are externalized by the salmon farming industry and, by extension, to what level social and ecological impacts are reflected in the market, if at all. The salmon farming industry represents a classic example of how a relatively new industry functions within the confines of the current economic climate and was assessed to examine whether social and ecological impacts are reflected in the market. A novel tool called the Global Aquaculture Performance Index (GAPI) has been developed that addresses both the need for a quantitative measure of social and ecological performance and a tool that informs where policy is best directed to alleviate the impact of externalities. In applying the GAPI method, the market price for farmed salmon was not found to be correlated with changes in social and ecological performance and it may be assumed that these costs are externalized. GAPI provides a quantitative, performance based assessment of the salmon farming industry while the indicators of social and ecological performance provide clear starting points to improve salmon farming through a policy based context.
| Identifer | oai:union.ndltd.org:uvic.ca/oai:dspace.library.uvic.ca:1828/2675 |
| Date | 29 April 2010 |
| Creators | Gee, Jennifer L. M. |
| Contributors | Volpe, John |
| Source Sets | University of Victoria |
| Language | English, English |
| Detected Language | English |
| Type | Thesis |
| Rights | Available to the World Wide Web |
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