This is a great short documentary that presents the external costs of industrial salmon farming in Chile. While obviously this is not suitable for a commentary as it’s a video (and was published in 2019), it still gives a good insight into negative externalities of production. Therefore, it is a clear example of market failure in the fishing industry. The external costs that have to be paid by locals and the environment include all the garbage, plastic waste and – perhaps more importantly – the spread of diseases by salmon leading to the extinction of many local fish species. Interestingly, while salmon has never been native to the Chilean coastline, by now it has become the second largest exported good of the country.
Source of image: unsplash.com
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