I think the credits could be set up such that farmers would profit from electrically stunning more shrimp, but not from increasing shrimp production. For example, if conventional and electrically stunned shrimp marginally costed 10 and 10.1 $/​kg, the credits could cost just slighty more than 0.1 $/​kg (= 10.1 − 10). If conventional shrimp marginally costed 10 $/​kg, it would not make sense to increase production to sell credits at slightly more than 0.1 $/​kg if the additional electrically stunned shrimp were not bought by consumers, because this would result in a marginal loss of slightly less than 9.90 $/​kg (= 0.1 − 10).
Hi Angelina,
I think the credits could be set up such that farmers would profit from electrically stunning more shrimp, but not from increasing shrimp production. For example, if conventional and electrically stunned shrimp marginally costed 10 and 10.1 $/​kg, the credits could cost just slighty more than 0.1 $/​kg (= 10.1 − 10). If conventional shrimp marginally costed 10 $/​kg, it would not make sense to increase production to sell credits at slightly more than 0.1 $/​kg if the additional electrically stunned shrimp were not bought by consumers, because this would result in a marginal loss of slightly less than 9.90 $/​kg (= 0.1 − 10).