The solution to pollution? The value and limitations of environmental economics in guiding aquaculture development

The notable increase of aquaculture production in recent decades has in many instances been matched by growing concern for its impacts. Environmentalists, consumers and members of the general public are increasingly demanding to account for its resource use and to balance its proposed benefits with its environmental sustainability. Although conventional financial and economic analyses have demonstrated a broadly positive impact for many forms of aquaculture, including the more intensive resource‐demanding systems, the use of economic tools embracing wider measurements of social and environmental costs and benefits might provide different and possibly more critical perspectives. However, although these techniques hold promise for such analyses, their development and application in sectors such as aquaculture are as yet limited. This paper reviews the relevant issues, considers the tools and applications of environmental economics and proposes ways in which these may be more effectively be applied in strategic and local decision‐making for aquaculture development.