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The economic problem

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Question 7

Sustainable Seafood – Re-evaluating Marine Aquaculture Systems

Like many coastal nations in Northern Europe, Norway is undergoing debates concerning marine sustainability and consumer protein demands. A study conducted in 2020 suggested that wild-capture fisheries of key commercial species faced overexploitation, with nearly 35% of stock biomass falling below sustainable biological levels. In response to ecological concerns, experimental policy initiatives, including stricter fishing quotas and marine protected areas, have been introduced, although economic pressures have occasionally forced policy rollbacks due to complaints about rising consumer seafood prices and local coastal unemployment.

While consumer preferences have driven some change, macroeconomic downturns often alter purchasing behaviors. Figure 1 shows that sales of premium land-based sustainably farmed salmon fell in Norway between 2019 and 2022. In response, Norwegian aquaculture firms reduced the planned tank capacity dedicated to these methods (see Figure 2).

Recirculating aquaculture systems (RAS) are defined by indoor, land-based tank farming where water is continuously filtered and recycled. While highly sustainable in terms of eliminating sea lice, preventing escapes, and protecting marine wild stocks, the transition phase of constructing these high-tech land-based facilities often requires massive initial capital expenditure, high energy inputs, and results in lower initial output capacity compared to open-net ocean pen farming.

Figure 1: Sales of land-based sustainably farmed salmon and average household income in Norway, 2019 to 2022

Year20192022
Norwegian Sales of Land-Based Sustainable Salmon (m NOK)950710
Index of Real Average Household Income in Norway (2019=100)10095.2

Figure 2: Planned capacity for land-based RAS facilities in Norway, 2017 to 2023

YearPlanned Capacity (000s of tonnes)
201745
201860
201985
2020110
2021125
2022115
202398

Explain how the shift from open-net ocean pen farming to land-based recirculating aquaculture systems (RAS) impacts on scarcity.

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The economic problem Questions

  1. A Level
  2. /Economics
  3. /The economic problem