Economic viability of sustainable aquaculture practices for long-term resource management

Abstract

This paper evaluates the profitability of sustainable resource-based aquaculture and explores the possibility of incorporating long-term resource sustainability as part of integrated aquaculture system profitability. Considering the speed at which the global aquaculture sector is growing, it is still an utmost challenge to address its social and environmental sustainability concerns. Concepts of sustainable aquaculture are put forward to address the sector's blend of social, ecological, and economic objectives. Prior research demonstrates that aquaculture systems perform unevenly across the three dimensions. To position aquaculture as a credible pathway for long-term resource management, it is pertinent to evaluate the conditions in which economically viable aquaculture is practiced. To address this, the paper presents the sustainable aquaculture literature and studies on the economic sustainability of aquaculture, then, based on identifying gaps, proposes integrating cost-benefit analysis, life cycle analysis, and resource sustainability as a new methodological approach. The approach identifies resource economic drivers as feed cost, Yield per area, certification, and ecosystem externalities. The model, documented with illustrative tables and graphs, demonstrates that sustainable systems with moderate productive feed cost, efficient market access and cycles, and premium market access conditions, can be profitable within typical investment horizons. Economically viable sustainable aquaculture requires the systematic consideration of resource management, certification, waste management, and market frameworks. The approach described provides practitioners and policymakers with a mechanism for evaluating and developing frameworks for sustainable, long-term resource management. Future research should prioritize the empirical application of this approach across a range of geographical settings.