Environmental problems, productivity and innovations in Norwegian salmon aquaculture

Abstract Environmental issues have been of central importance throughout the history of salmon aquacuiture in Norway. In this paper we will examine some of the issues, and show that while there are still problems, many have also been resolved. A major reason for this is the fact that salmon farmers have internalized many of the environmental effects into their decision‐making due to the relationship between environmental impact and productivity. Another reason, particularly when it comes to treatment of diseases, is that lack of private innovative activity due to different market failures has been compensated for by government‐sponsored research and development.