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ISSN: 1546-9239 (Print)
ISSN: 1554-3641 (Online)
Research Article Open Access

ECONOMIC EVALUATION OF AQUACULTURE INVESTMENTS UNDER CONDITIONS OF RISK AND UNCERTAINTY IN THE MEDITERRANEAN SEA

Filippo Sgroi1, Salvatore Tudisca1, Anna Maria Di Trapani1 and Riccardo Testa1
  • 1 Department of Agricultural and Forestry Sciences, University of Palermo, Italy

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 inshore with respect to offshore farming.

American Journal of Applied Sciences
Volume 11 No. 9, 2014, 1727-1734

DOI: https://doi.org/10.3844/ajassp.2014.1727.1734

Submitted On: 2 September 2014 Published On: 1 October 2014

How to Cite: Sgroi, F., Tudisca, S., Trapani, A. M. D. & Testa, R. (2014). ECONOMIC EVALUATION OF AQUACULTURE INVESTMENTS UNDER CONDITIONS OF RISK AND UNCERTAINTY IN THE MEDITERRANEAN SEA. American Journal of Applied Sciences, 11(9), 1727-1734. https://doi.org/10.3844/ajassp.2014.1727.1734

Open AccessCopyright: © 2014 Filippo Sgroi, Salvatore Tudisca, Anna Maria Di Trapani and Riccardo Testa. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

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Keywords

  • Competitiveness
  • Farms
  • European Sea Bass
  • Expected Incomes
  • Probability