The Demand for Atlantic Salmon in Canada

• Published in: Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie
• Main Authors: Kabir, M., Ridler, N. B.
• Format: Article in Journal/Newspaper
• Language: English
• Published: Wiley 1984
• Subjects: Economics and Econometrics; Agronomy and Crop Science; Animal Science and Zoology; Ecology; Global and Planetary Change; Canada; Venus; Atlantic salmon
• Online Access: http://dx.doi.org/10.1111/j.1744-7976.1984.tb02025.x; https://api.wiley.com/onlinelibrary/tdm/v1/articles/10.1111%2Fj.1744-7976.1984.tb02025.x; https://onlinelibrary.wiley.com/doi/pdf/10.1111/j.1744-7976.1984.tb02025.x

This paper estimates values for a few important parameters related to the Atlantic salmon market in Canada. Included among the estimated parameters are income and price elasticities of demand. Many economists are currently engaged in the study of economic feasibility of farmed Atlantic salmon in Canada. In these studies forecasts of demand for Atlantic salmon play a crucial role. Since there are no serious studies on relevant elasticity estimates, the researchers have so far relied on extrapolations of historical time series data on demand (see, for example, Marine Science Research Laboratory (198O), Ridler (1983)). In this study we have formulated and estimated demand equations for Atlantic salmon using Canadian data covering the period between 1955 and 1981. We have found a very high value for both price and income elasticities of demand. High elasticity values have interesting implications for salmon farming. The domestic market can absorb additional supplies for Atlantic salmon. A high price elasticity guarantees that there is scope for salmon fishermen to increase their revenue by selling a higher volume in the Canadian market. The value of income elasticity suggests that Atlantic salmon is a strongly superior good. Various pressure groups in Canada and elsewhere have been claiming that Atlantic salmon is an endangered species and restrictions on catches must be imposed to save the species from total extinction. Implications of such controls have been analyzed in the light of the calculated value of the elasticities. Cet article fait une estimation de valeurs pour quelques paramètres importants reiatifs à la vente du saumon de l'Atlantique au Canada. Re‐venus et élasticité des prix à la demands sont inclus parmi les paramétres étudiés. Un certain nombre d'économistes étudient en ce moment l'‐aspect économique de I'implantation d'élevages de saumon de l'Atlantique au Canada. Dans ces études les previsions portant sur la demande jop‐uent un rolê‐clé. Etant donné qu'il n'y a pas d'études sérieuses sur les ...