Stringency of environmental regulation and aquaculture growth: a cross-country analysis

TY - JOUR

T1 - Stringency of environmental regulation and aquaculture growth

T2 - a cross-country analysis

AU - Gedefaw Abate, Tenaw

AU - Nielsen, Rasmus

AU - Tveterås, Ragnar

PY - 2016/4/2

Y1 - 2016/4/2

N2 - ABSTRACT: During the last three decades, aquaculture has been the fastest growing animal-food-producing sector in the world, accounting for half of the present seafood supply. However, there is a significant growth disparity among aquaculture-producing countries. The reasons why some countries have achieved remarkable growth in aquaculture while others have stagnated or even declined have not been determined. In this article, we investigate whether environmental regulations have an impact on aquaculture growth. Using a cross-country regression analysis, we show that stringent environmental regulations are negatively related to aquaculture growth, whereas GDP growth has a positive effect. Countries often face a difficult balancing act between growth and environmental considerations when devising regulations. Our empirical results suggest that stricter environmental regulations in developed countries have contributed to lower growth rates and that these countries are falling behind emerging and developing economies that have more lenient environmental regulations.

AB - ABSTRACT: During the last three decades, aquaculture has been the fastest growing animal-food-producing sector in the world, accounting for half of the present seafood supply. However, there is a significant growth disparity among aquaculture-producing countries. The reasons why some countries have achieved remarkable growth in aquaculture while others have stagnated or even declined have not been determined. In this article, we investigate whether environmental regulations have an impact on aquaculture growth. Using a cross-country regression analysis, we show that stringent environmental regulations are negatively related to aquaculture growth, whereas GDP growth has a positive effect. Countries often face a difficult balancing act between growth and environmental considerations when devising regulations. Our empirical results suggest that stricter environmental regulations in developed countries have contributed to lower growth rates and that these countries are falling behind emerging and developing economies that have more lenient environmental regulations.

U2 - 10.1080/13657305.2016.1156191

DO - 10.1080/13657305.2016.1156191

M3 - Journal article

SN - 1365-7305

VL - 20

SP - 201

EP - 221

JO - Aquaculture Economics & Management

JF - Aquaculture Economics & Management

IS - 2

ER -