Research Article Open Access

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

  • Filippo Sgroi University of Palermo, Italy
  • Salvatore Tudisca University of Palermo, Italy
  • Anna Maria Di Trapani University of Palermo, Italy
  • Riccardo Testa University of Palermo, Italy

American Journal of Applied Sciences
Volume 11 No. 9, 2014, 1727-1734
DOI: https://doi.org/10.3844/ajassp.2014.1727.1734

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.

How to Cite

Sgroi, F., Tudisca, S., Trapani, A. M. D. & Testa, R. (2014). ECONOMIC EVALUATION OF AQUACULTURE INVESTMENTS UNDER CONDITIONS OF RISK AND UNCERTAINTY IN THE MEDITERRANEAN SEA. American Journal of Applied Sciences, 11(9), 1727-1734. https://doi.org/10.3844/ajassp.2014.1727.1734

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Keywords

  • Competitiveness
  • Farms
  • European Sea Bass
  • Expected Incomes
  • Probability