External costs of aquaculture and the effects on Scottish salmon

Over the last century, wild Atlantic salmon populations have been in steep decline. Historically, fish populations have deteriorated primarily from overfishing. In the case of wild Atlantic salmon populations, the decline in the population comes from the result of spreading diseases derived from aquaculture. The crux of this thesis focuses on the aquaculture industry in Scotland, because of the rapid and unique development of the aquaculture industry and the effect it has had on wild salmon populations. This thesis will determine the costs aquaculture have had on wild salmon recruitment, as well as the costs aquaculture has had on related industries (primarily recreational angling). Through the analysis of the thesis, there will be a review of two possible policy actions that can be taken to promote abatement and maximize social welfare of the damages. The two policy actions in question will be the use of a penalty tax and the use of marketable permits by authorities.