Economic Evaluation of Capture-Based Bluefin Tuna Aquaculture on the US East Coast

Abstract

This article assesses the economic feasibility of capture-based bluefin tuna aquaculture on the US East Coast and examines the potential of this hybrid form of aquaculture production to increase the net economic value generated in the US East Coast bluefin tuna fishery. A bioeconomic model of an offshore capture-based bluefin tuna aquaculture facility is used to evaluate the economic feasibility of this form of production on the US East Coast under a variety of economic, biological, and regulatory assumptions. The results suggest that of the three proposed farming sites along the US East Coast, the expected net present value (NPV) of the operation over a 10-year operating horizon is highest at the Gray’s Reef, GA, site. The second part of this article assesses the extent to which the opportunity to engage in capture-based bluefin tuna aquaculture production could improve the net economic value generated in the US East Coast bluefin tuna fishery. The results suggest that if the fishery had the opportunity to engage in capture-based bluefin tuna aquaculture production, there would be an increase in the net revenue generated in the fishery. Depending on how the seasonal quota was enforced, economic improvement in the fishery ranged from a 52–142% improvement in net revenue. Even when the cost per fish associated with capture-based bluefin tuna aquaculture production was doubled, the results still indicated that the opportunity to engage in capture-based bluefin tuna aquaculture production would lead to a 12% increase in net revenue in the fishery.