Aquaculture conglomerates are rapidly expanding open-net pen salmon farms in pristine coastal fjords to meet the global boom in seafood consumption. While fish farming provides a cheap source of protein and creates rural employment, the high density of these underwater pens could soon lead to regional ecological crises. Millions of farmed salmon generate massive quantities of untreated organic waste and chemical pesticides (used to treat sea lice outbreaks) that settle on the seabed, destroying benthic habitats. Furthermore, sea lice from these pens easily spread to wild salmon populations, driving local wild species toward extinction. Escaped farmed salmon also breed with wild populations, weakening their genetic fitness.
Some aquaculture firms are attempting to invest in expensive closed-containment land systems or offshore deep-water pens. However, these technologies are expensive to implement at scale. Environmental economists argue that because salmon farming operators do not pay for the full environmental damage caused to wild fisheries and coastal marine ecosystems, the market price of farmed salmon remains artificially low, leading to overproduction.
Extract C states that "the high density of these underwater pens could soon lead to regional ecological crises."
With the help of a diagram, explain why the rapid growth of open-net salmon aquaculture might lead to market failure.
