Salmon Aquaculture in a Global Perspective, a Lesson from Norwegian Regulations

Abstract

The salmon aquaculture is experiencing rapid growth as the worlds need for sustainable sources of protein and fat increases. The Norwegian aquaculture industry is world leading. Over the years several regulatory schemes have been employed to internalize the industry’s negative environmental. This thesis investigates how the industry will adapt to the suggestion of a collaborative incentive scheme. Results show that risk-averse actors will prefer to defect from collaboration, and that a single industry actor will have additionally decreased incentive to collaborate as a function of his relative smaller market size. Furthermore, incentive schemes like this seem only applicable to a coherent group of actors, and the probability of a single actor defecting can lead to opportunistic free rider behaviour in the group.