Regulatory climate toward finfish aquaculture: The impacts of state institutional structure

Abstract The impact of state development and regulatory institutional characteristics on the regulatory climate toward finfish aquaculture, defined as the stringency of regulations imposed upon aquaculture, is evaluated in a two‐limit truncated regression model, using data from a national survey. The conceptual basis of the model draws from elements of public choice and firm location theories, characterized within an institutional setting. Empirical results indicate that (1) establishing a formal state aquaculture development plan and (2) transferring regulatory enforcement authority from the state fish and wildlife agency to the state department of agriculture are strategies which will significantly reduce regulatory stringency and the negative impacts of state institutional constraints on aquaculture. Ornamental fish and baitfish were subjected to lower regulatory stringency than commercial foodfish. States in the northeast and western regions of the U.S. had higher regulatory stringency than states in the southern region.