The Economics of Ocean Ranching: Experiences, Outlook and Theory













Table of Contents


by
Ragnar Arnason
Professor
University of Iceland
Department of Economics
Reykjavik, Iceland

A Report for the
Food and Agriculture Organization

Revised version

October 2000

Food and Agriculture Organization of the United Nations

Rome, 2001

ISSN 0429-9345

FAO
FISHERIES
TECHNICAL
PAPER
413

The designations employed and the presentation of the material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

ISBN 92-5-104631-X

All rights reserved. Reproduction and dissemination of material in this information product for educational or other non-commercial purposes are authorized without any prior written permission from the copyright holders provided the source is fully acknowledged. Reproduction of material in this information product for resale or other commercial purposes is prohibited without written permission of the copyright holders. Applications for such permission should be addressed to the Chief, Publishing and Multimedia Service, Information Division, FAO, Viale delle Terme di Caracalla, 00100 Rome, Italy or by e-mail to copyright@fao.org

© FAO 2001


Table of Contents


PREPARATION OF THIS DOCUMENT

ABSTRACT

PREFACE

GLOSSARY OF SOME TERMS

EXECUTIVE SUMMARY

INTRODUCTION

1. RECENT EXPERIENCES IN OCEAN RANCHING: THE CASES OF JAPAN, UNITED STATES AND ICELAND

1.1 Ocean Ranching in Japan
1.2 Ocean Ranching in the United States
1.3 Ocean Ranching in Iceland
1.4 Similarities and Dissimilarities
1.5 Outlook

2. THE FUNDAMENTAL EXTERNALITY OF OCEAN RANCHING

2.1 The Size, Direction and Implications of the Ecological Externality
2.2 Remedies
2.3 The International Aspect

3. METHODOLOGY FOR ASSESSING THE COSTS AND BENEFITS OF OCEAN RANCHING

3.1 Basic Theory
3.2 Appropriate Accounting Prices
3.3 Developed and Underdeveloped Economies
3.4 Ocean Ranching and Environmental Externalities
3.5 Calculation of Net Benefits
3.6 The Incidence of Costs and Benefits
3.7 The Impact of Estimated Recovery Rates
3.8 Summary Guidelines for the Economic Evaluation of Ocean Ranching Projects
3.9 Institutional Framework

REFERENCES

APPENDICES

Appendix 1: Derivation of cost-benefit equations
Appendix 2: Equations for estimating recovery rates

BACK COVER