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dc.contributor.authorAkpalu, Wisdom
dc.contributor.authorBitew, Worku T.
dc.date.accessioned2018-10-02T19:47:22Z
dc.date.available2018-10-02T19:47:22Z
dc.date.issued2018
dc.identifier.otherdoi:10.1017/S1355770X18000025
dc.identifier.urihttp://hdl.handle.net/1951/70467
dc.description© Cambridge University Press 2018. This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-ShareAlike licence (http://creativecommons.org/licenses/by-nc-sa/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the same Creative Commons licence is included and the original work is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use.en_US
dc.description.abstractMost developing countries are increasingly depending on freshwater based aquaculture to supplement the declining catch from capture fisheries. Yet the competition between capture fisheries and cage culture for space, pollution generated by cage culture, and fish markets interaction effects are hardly conceptualized in a bioeconomic framework. Furthermore, the economic viability of cage culture depends on substantial investment thresholds, engendering foreign direct investment in the industry in developing countries. This paper develops a conceptual model for fresh-water-based aquaculture that accounts for these effects. We found that a Pigouvian tax (optimum ad valorem tax) that corrects the externalities depends on economic and biological parameters in both fisheries. Correcting for the externalities results in a reduction in aquaculture production but not optimum wild catch. Furthermore, with foreign capital in aquaculture, the Pigouvian tax equals the ratio of net to total benefit from aquaculture. Numerical values are used to illustrate the results.en_US
dc.language.isoen_USen_US
dc.publisherEnvironment and Development Economicsen_US
dc.subjectAd valorem taxen_US
dc.subjectaquacultureen_US
dc.subjectexternalitiesen_US
dc.subjectPigouvian taxen_US
dc.titleExternalities and foreign capital in aquaculture production in developing countriesen_US
dc.typeArticleen_US


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