American Journal of Applied Sciences

ECONOMIC EVALUATION OF AQUACULTURE INVESTMENTS UNDER CONDITIONS OF RISK AND UNCERTAINTY IN THE MEDITERRANEAN SEA

Filippo Sgroi, Salvatore Tudisca, Anna Maria Di Trapani and Riccardo Testa

DOI : 10.3844/ajassp.2014.1727.1734

American Journal of Applied Sciences

Volume 11, Issue 9

Pages 1727-1734

Abstract

This study aims to analyze, from a technical and economic point of view, the choice between alternative investments in aquaculture under conditions of risk and uncertainty. In particular, a comparative analysis has been conducted between an inshore and an offshore farm producing European sea bass in the Mediterranean Sea. The applied model refers to the theory of subjective probability, assigning a different probability to expected incomes during the investment period. Results show an economic convenience of inshore with respect to offshore farming.

Copyright

© 2014 Filippo Sgroi, Salvatore Tudisca, Anna Maria Di Trapani and Riccardo Testa. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.