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Environmentally-Determined Production Frontiers And Lease Utilization In Virginia's Eastern Oyster Aquaculture Industry, Jennifer Beckensteiner, Andrew M. Scheld, Pierre St-Laurent, Marjorie A.M. Friedrichs, David M. Kaplan

VIMS Articles

During the last decade, oyster aquaculture has rebounded in Virginia and has been associated with an increase in subaqueous leased area. Production levels remain historically low, however, and many leases are thought to be underutilized. This study uses a novel approach leveraging high-resolution environmental data to evaluate lease utilization and identify constraints on aquaculture development. Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis (DEA) were used to define environmentally-determined production frontiers, i.e. production possibilities based on empirical observations of aquaculture production, available space, and environmental conditions. Both methods estimated Lease Capacity Utilization (LCU, from 0 to 1) for leases producing …