Community Research and Development Information Service - CORDIS

Cost benefit analysis of an extra marginal treatment of farms to reduce larval export and infestation of wild fish

Based on the information and data gathered in the project, a computer model was developed of the assumed causal chain between, enhanced lice treatment, better smolt survival and improved returns to the coast, to the economic and social benefits derived from greater income and employment in the commercial and angling sectors.

The main result is a series of Cost/Benefit ratios aimed at summarising the economic impacts from treatments with varying levels of effectiveness. A number of scenarios are simulated to illustrate how these ratios vary with changing assumptions. A 10 % improvement in the smolt survival, combined with a moderate response by anglers to the improved runs, would lead to costs of treatment exceeding benefits in Norway while benefits would exceed costs in Scotland and Ireland. A 20 % improvement in smolt runs would lead to benefits exceeding costs in all three countries.

In all the cases examined, the benefits would exceed costs in Ireland due to the small size of the farming sector and the good returns in terms of expenditure and employment to improved angling catches. The main value of the modelling is that it clearly highlights what factors are most important for the Cost/Benefit ratio and how they interact.

Reported by

Norwegian Institute for Nature Research
N-2624 Lillehammer
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