Bioeconomic Interactions Between the Capture Fishery and Aquaculture

This paper builds on the work of Anderson (1985a). Interactions between the capture fishery and aquaculture are modeled in two different cases: (1) cultured fish has the same market value as wild fish, and (2) cultured fish has only a substitute value for wild fish. In agreement with Anderson’s conclusions, it is found that the entry of aquaculture lowers market price, increases total supply, reduces fishing effort, and raises natural fish stocks. When culture cost is reduced in some way, the fish price will decrease and fishing effort will decline. This may represent another way to reduce pressure on capture fisheries, with the advantage that the market equilibrium has a higher supply and lower price than other effort control measures. The interactions in both cases are similar, but impacts of aquaculture on price, supply, and effort in the second case are weaker than the first. Dynamic simulations are carried out and show more clearly the process of dynamic interactions between the capture fishery and aquaculture.