Executive summary: The post examines the long-run supply responsiveness of wild capture (fishing) versus aquaculture, highlighting that wild capture supply is typically less responsive to price and demand shifts compared to aquaculture due to factors like catch limits, fishing restrictions, and the natural limits of wild fish stocks.
Key points:
In the long run, firms can adjust various inputs like capital, labor, and production levels, but in the short run at least one input is often fixed.
Wild capture fisheries are often less responsive to price and demand shifts than aquaculture, with supply sometimes even changing in the opposite direction due to overfishing.
Fishery management policies like total allowable catch (TACs) can reduce the responsiveness of wild capture supply to price and demand shifts.
Estimates of own-price elasticities of supply tend to be lower for wild capture than aquaculture.
The effects of demand shifts on wild capture supply depend on the relative magnitudes of the supply and demand elasticities.
Supply elasticity estimates from the literature show wild capture elasticities are often lower and sometimes negative, while aquaculture elasticities tend to be higher and positive.
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Executive summary: The post examines the long-run supply responsiveness of wild capture (fishing) versus aquaculture, highlighting that wild capture supply is typically less responsive to price and demand shifts compared to aquaculture due to factors like catch limits, fishing restrictions, and the natural limits of wild fish stocks.
Key points:
In the long run, firms can adjust various inputs like capital, labor, and production levels, but in the short run at least one input is often fixed.
Wild capture fisheries are often less responsive to price and demand shifts than aquaculture, with supply sometimes even changing in the opposite direction due to overfishing.
Fishery management policies like total allowable catch (TACs) can reduce the responsiveness of wild capture supply to price and demand shifts.
Estimates of own-price elasticities of supply tend to be lower for wild capture than aquaculture.
The effects of demand shifts on wild capture supply depend on the relative magnitudes of the supply and demand elasticities.
Supply elasticity estimates from the literature show wild capture elasticities are often lower and sometimes negative, while aquaculture elasticities tend to be higher and positive.
This comment was auto-generated by the EA Forum Team. Feel free to point out issues with this summary by replying to the comment, and contact us if you have feedback.