Template-type: ReDIF-Paper 1.0
Author-Name: Iizuka, Michiko
Author-Email: iizuka@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Author-Name: Katz, Jorge
Author-Email: Jorge.katz2@yahoo.com.ar
Author-Workplace-Name: University of Chile
Title: Natural resource industries, 'tragedy of the commons' and the case of Chilean 
	 salmon farming
Abstract: Chilean salmon farming has been considered as an outstanding example of 
	 success after growing at two digit rates for more than twenty years. 
	 With further insight, we now know that such rapid process of expansion 
	 came at the expense of sanitary and environmental deterioration. The 
	 outbreak of ISA- a viral disease that kills salmon - in 2008 has made 
	 this utterly clear. The overexploitation of the 'common' - pristine 
	 waters - upon which the industry operates, and the lack of an adequate 
	 regulatory mechanism monitoring environmental impact contributed to a 
	 gradual - but not always adequately perceived - long term decay of 
	 industry performance. The paper shows that industries based on the 
	 exploitation of a CPR - common pool resource - require a quite different 
	 analytical approach than the one conventional neoclassical theory offers 
	 us for the understanding of firm and industry behavior. Our study shows 
	 that industries of this sort require location specific know how and R&D 
	 efforts plus public/private cooperation in order to maintain long term 
	 sustainable growth.
Classification-JEL: Q22, Q57, L22, O32
Keywords: common pool resources, 'tragedy of commons', natural resource based
	 industry, Chile
Series: UNU-MERIT Working Papers
Creation-Date: 2010
Number: 061
File-URL: http://www.merit.unu.edu/publications/wppdf/2010/wp2010-061.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2010061