IMPACTS OF INTRODUCED AQUACULTURE SPECIES ON MARKETS FOR NATIVE MARINE AQUACULTURE PRODUCTS: THE CASE OF EDIBLE OYSTERS IN AUSTRALIA |
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| Authors: | Peggy Schrobback Sean Pascoe Louisa Coglan |
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| Institution: | 1. School of Economics and Finance , Queensland University of Technology , Brisbane , Queensland , Australia p.schrobback@qut.edu.au;3. CSIRO Wealth from Oceans Flagship, CSIRO Marine and Atmospheric Research , EcoSciences Precinct , Brisbane , Queensland , Australia;4. School of Economics and Finance , Queensland University of Technology , Brisbane , Queensland , Australia |
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| Abstract: | Economic competition between introduced and native aquaculture species is of interest for industry stakeholders since increased production can affect price formation if both aquaculture species are part of the same market or even substitutes. In this study, we focus on the Australian edible oyster industry, which is dominated by two major species—the native Sydney rock oyster (grown mainly in Queensland and New South Wales) and the non-native Pacific oyster (grown mainly in South Australia and Tasmania). We examine the integration of the Australian oyster market to determine if there exists a single or several markets. Short- and long-run own, cross-price and income flexibilities of demand are estimated for both species using an inverse demand system of equations. The results suggest that the markets for the two species are integrated. We found evidence that the development of the Pacific oyster industry has had an adverse impact on Sydney rock oyster prices. However, our results show that both species are not perfect substitutes. Demand for Sydney rock oysters is relatively inelastic in the long run, yet no long-run relationships can be identified for Pacific oysters, reflecting the developing nature of this sector. |
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| Keywords: | inverse demand market integration Pacific oyster Sydney rock oyster |
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