2014
DOI: 10.3844/ajassp.2014.1727.1734
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Economic Evaluation of Aquaculture Investments Under Conditions of Risk and Uncertainty in the Mediterranean Sea

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 i… Show more

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Cited by 12 publications
(8 citation statements)
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References 33 publications
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“…In particular, in conventional lemon production, investment is not convenient with an increase by 30% of production cost or with a decrease of sales price by 20%. These results denote a lower risk management and higher farmer's income in biological farms with respect to conventional ones, that are key factors in an ever more globalized market [90][91][92][93][94][95][96].…”
Section: Sensitivity Analysismentioning
confidence: 99%
“…In particular, in conventional lemon production, investment is not convenient with an increase by 30% of production cost or with a decrease of sales price by 20%. These results denote a lower risk management and higher farmer's income in biological farms with respect to conventional ones, that are key factors in an ever more globalized market [90][91][92][93][94][95][96].…”
Section: Sensitivity Analysismentioning
confidence: 99%
“…For research purposes, a purposive sample of farms was chosen [25][26][27]. The characteristics taken into consideration in the selection of the sample units were those most frequently observed in Sicilian greenhouse tomato farms according to the most recent Italian Agricultural Census data, i.e., small farm size, farm managed directly by farmer's family, low mechanization of farming operations, and local sales modality.…”
Section: Methodsmentioning
confidence: 99%
“…The wooded area shows different weather conditions as a function of altitude and slope exposure. It is present a Mediterranean climate, characterized by hot and dry summer and rainy winter (Agnese et al, 2008;D'Asaro et al, 2014;2012;Di Trapani et al, 2014;Grillone et al, 2014;2012;Sgroi et al, 2014a).…”
Section: Case Studymentioning
confidence: 99%