Duncan Knowler

Cost-benefit analysis and economic impact analysis both provide the ability to assess projects’ economic impacts, but through different methodological approaches and perspectives. In Canada and elsewhere, cost-benefit analysis is often eschewed in favour of economic impact analysis in environmental assessment processes. This paper presents a criteria-based evaluation of the two methods and shows that cost-benefit analysis has numerous strengths relative to economic impact analysis but that both methods are useful. Consequently, we recommend that the environmental assessment process be reformed to include cost-benefit analysis complemented by economic impact analysis to provide decision-makers with more complete information.

In integrated multi‐trophic aquaculture (IMTA), species from different trophic levels are raised in proximity to one another and the co‐products (organic and inorganic wastes) of one cultured species are recycled to serve as nutritional inputs for others. IMTA can reduce the ecological impacts near aquaculture operations, improve social perceptions of aquaculture and provide financial benefits for aquaculture producers via product diversification, faster production cycles and price premiums on IMTA products. We review aspects of IMTA’s economic potential and market acceptance and consider ways to address the current gaps in our understanding. We find that adopting IMTA raises the assimilative capacity of the farm and that IMTA substantively reduces the environmental cost of aquaculture. Moreover, integrating extractive species (e.g. invertebrates and/or seaweeds), with existing fed‐monoculture operations, can increase farm profits. The presence of positive public attitudes towards IMTA, as expressed by a willingness to pay a premium for its products, can further increase the profitability of adopting IMTA. Areas requiring more economic research include the development of comparative bioeconomic models of IMTA and the evaluation of competing production systems and their ability to internalize externalities to demonstrate the true value of IMTA to society. Further exploration of economic incentives, such as instruments needed to foster adoption of IMTA, and investigation of marketing opportunities, such as promoting the eco‐certification of IMTA products, are also needed. Our paper aimed to inform economists and non‐economists alike about the latest developments in IMTA economics, and spur further research on critical topics concerning this important subject.

Climate change may increase the occurrence and severity of forest fires, leading to worsening wildfire seasons. More frequent burn events would have various effects due to increased haze and smoke, including a greater incidence of impacts on human health and reduced or impaired visibility. In areas such as the Lower Fraser Valley of British Columbia, which prides itself on panoramic mountain and city views, individuals may be willing to pay to address deteriorating visibility conditions arising from wildfires or other sources. However, studies consistently show that any attempt to ask individuals how much they are willing to pay to improve local visibility will be confounded with the benefits of improving local health conditions. We used a discrete choice experiment to estimate the value of potential improvements in local visibility in the Lower Fraser Valley, but we included the consideration of health effects and found that these two attributes were indeed linked. As human preferences are rarely homogeneous, we also considered heterogeneity in respondents’ preferences for increases in the number of improved-visibility days versus healthy days. Finally, we applied our results to estimate the value of damages from visibility disruptions related to wildfire smoke from 2002 to 2018 in the Lower Fraser Valley.

We assess the financial performance of an Atlantic salmon (Salmo salar) monoculture versus an Atlantic salmon, blue mussel (Mytilus edulis), and sugar kelp (Saccharina latissima) Integrated Multi-Trophic Aquaculture (IMTA) operation. Using updated methods and models, we improve on earlier studies of IMTA economics. A discounted cash-flow analysis was used to assess the profitability of hypothetical monoculture and IMTA operations over a 10-year period in the Bay of Fundy, New Brunswick, Canada. The IMTA operation was more profitable, even when no price premium was included for its products. A 10% price premium for IMTA salmon and mussels resulted in a substantially higher net present value for the IMTA operation than for salmon monoculture. However, uncertainty related to IMTA’s financial and environmental performance, as well as IMTA’s increased operational complexity, may be barriers to IMTA adoption in Canada at present. As a result, it is likely that IMTA must generate substantially greater profits than salmon monoculture to stimulate investment. Alternatively, declining salmon production in recent years may encourage IMTA adoption in the future since it can provide crop diversification and economic stability benefits. IMTA research may benefit from alternative assessment methods such as the real options approach that explicitly incorporate uncertainty.

Awareness of the environmental problems associated with conventional finfish aquaculture has stimulated interest in more sustainable production methods. For example, integrated multitrophic aquaculture (IMTA) combines the culturing of fish and extractive aquaculture species at one site to simulate a balanced natural system. In contrast, closed containment aquaculture (CCA) separates farming from the natural marine environment using closed water tanks on land or in water. We explore consumer preferences for salmon produced with IMTA or CCA rather than conventional technology and pose two questions: how aware of IMTA and CCA are salmon consumers on the U.S. West Coast and what are they willing to pay for salmon produced with these methods? Using a discrete choice experiment, we estimate marginal willingness‐to‐pay of 39.0% and 15.7% for IMTA and CCA, respectively, as a premium added to the price of conventionally farmed Atlantic salmon. Results using latent class analysis show that consumers with a strong preference for wild salmon have high marginal values for farmed salmon produced with IMTA or CCA, but the average consumer from this group would be unlikely to purchase it. Overall, 44.3% and 16.2% of the respondents preferred IMTA or CCA to conventional salmon farming, respectively, and IMTA was preferred to CCA when respondents were asked to choose one.La sensibilisation aux problèmes environnementaux liés à l’élevage de poissons classique suscite un intérêt pour des méthodes de production plus durables. Par exemple, l'aquaculture multitrophique intégrée (AMTI) combine l’élevage de poissons et d'espèces d'extraction sur un même site afin d'imiter un écosystème naturel équilibré. En revanche, l'aquaculture en parc clos (APC) consiste en un élevage hors du milieu marin naturel à l'aide de réservoirs étanches installés sur le sol ou dans l'eau. Dans la présente étude, nous avons analysé les préférences des consommateurs pour le saumon issu de l'AMTI ou de l'APC et celui issu de l’élevage classique. Nous nous sommes également posé deux questions : À quel point les consommateurs de saumon de la côte Ouest des États‐Unis connaissent‐ils l'AMTI et l'APC, et combien sont‐ils prêts à payer pour obtenir du saumon issu de ces méthodes de production? À l'aide de la méthode des choix discrets, nous avons obtenu un consentement à payer marginal de 39,0 % pour l'AMTI et de 15,7 % pour l'APC, de plus que le prix du saumon de l'Atlantique issu de l’élevage classique. Les résultats de l'analyse des classes latentes ont montré que les consommateurs qui affichaient une préférence marquée pour le saumon sauvage avaient des valeurs marginales élevées pour le saumon issu de l'AMTI ou de l'APC, mais qu'il était peu probable que le consommateur moyen de ce groupe en achète. Dans l'ensemble, les répondants ont indiqué préférer le saumon issu de l'AMTI ou de l'APC (44,3 % et 16,3 % respectivement) au saumon issu de l’élevage classique. De plus, s'ils avaient à choisir entre le saumon issu de l'AMTI ou de l'APC, ils choisiraient le saumon issu de l'AMTI.