The Atlantic salmon aquaculture industry has often viewed growing environmental legislation as a barrier limiting its expansion and growth. However, a new study challenges this perspective, suggesting that under certain conditions, these same regulations can foster long-term, sustainable industrial growth.
An investigation published in Aquaculture Economics & Management analyzes the complex relationship between the stringency of environmental regulations, the industry’s level of compliance, and the growth of salmon production. The results offer a novel perspective that could change how producers and policymakers approach the future of salmon farming.
Analyzing global salmon farming: How was the study conducted?
To unravel this dynamic, researchers from the NTNU – Norwegian University of Science and Technology employed a panel data analysis covering a 17-year period (2005-2021) across eight major Atlantic salmon-producing countries: Australia, Canada, Chile, Iceland, Ireland, Norway, the United Kingdom, and the United States.
The study modeled the annual growth of salmon production in each country and linked it to several key variables:
- Environmental Regulation Stringency (AER): Measured by the number of new aquaculture-related environmental regulations ratified each year in each country.
- Regulatory Compliance (COMP): The World Bank’s “Rule of Law” indicator was used as a proxy, reflecting the confidence in and adherence to rules within a society.
- Other Control Variables: GDP growth, population, export volume, and innovation (measured by patents in environmental technologies) were included to provide a more comprehensive view.
This methodological approach allowed the authors to examine not only the isolated effects of stringency and compliance but, more importantly, the combined effect of both factors.
The synergy between stringency and compliance
Contrary to widespread belief, the study’s findings do not show that greater regulatory stringency alone has a direct impact (either positive or negative) on the growth of salmon production. The truly decisive factor is compliance.
Compliance as a catalyst for growth
The study reveals that regulatory compliance (COMP) has a positive and statistically significant effect on production growth. But the most revealing finding is the interaction between stringency (AER) and compliance (COMP): this combination also demonstrates a positive and significant impact.
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What does this mean in practice? It means the positive effect of strict environmental regulations is amplified in countries where there is a high level of compliance. In other words, regulations are not an obstacle; rather, when respected, they create the conditions for more robust and sustainable growth.
Why does compliance foster sustainable growth?
The authors propose several explanations for this synergistic relationship:
- Reduction of negative externalities: Strict and well-enforced regulations compel companies to internalize the costs of negative impacts such as diseases and sea lice. Managing these issues, which cause high mortality rates, leads to healthier and more productive salmon populations. The study highlights that most of the regulations analyzed pertain to biosecurity, fish health, and welfare.
- Prevention of collapses: The Infectious Salmon Anemia (ISA) virus crisis in Chile in 2007 is a clear example of how lax regulation can lead to production collapses. Following the crisis, Chile implemented a significant number of new regulations, becoming the country with the strictest regulatory framework in the analyzed sample.
- Fostering innovation: While not always optimal, strict environmental policies can incentivize long-term innovation (an idea derived from the “Porter Hypothesis”). Companies that adapt and develop new technologies to meet regulatory standards are the ones that survive and thrive, raising the standard for the entire industry.
Other drivers of salmon production
The analysis also confirmed the importance of other factors in the industry’s growth:
- Exports and innovation: Both variables showed a positive and significant correlation with production growth, underscoring the importance of international market demand and technological development for the sector’s productivity.
- GDP and population growth: Surprisingly, GDP growth was not a significant factor, possibly because the industry is heavily export-oriented. On the other hand, population growth showed a negative correlation, which could indicate greater competition for resources and increased environmental degradation in more populated areas.
Implications for the future of salmon farming
The results of this study are encouraging for the industry and offer clear guidance for policymaking. The main conclusion is not that fewer regulations are needed, but that it is crucial to strengthen a culture of compliance.
For a producer, this means investing in compliance with biosecurity, health, and environmental management regulations is not merely a cost but a strategic investment that can enhance long-term productivity and sustainability. For regulators, the message is that the design of regulatory frameworks must be accompanied by mechanisms that incentivize and ensure their effective enforcement.
Although the authors acknowledge the study’s limitations—such as the difficulty in measuring the “quality” of each regulation or using a general proxy for compliance—their findings mark a turning point in the debate.
Conclusion: A pact for sustainability and productivity
This work demonstrates that regulatory stringency and production growth are not conflicting objectives in salmon farming. On the contrary, a synergistic relationship exists where a high level of compliance transforms strict environmental regulations into a driver for sustainable growth.
Strengthening adherence to regulations not only mitigates environmental and health risks but can also increase consumer confidence, foster innovation, and ultimately, secure the long-term economic viability of the salmon industry.
Contact
Juliana Figueira Haugen
NTNU Business School, NTNU – Norwegian University of Science and Technology
Trondheim, Norway
Email: juliana.haugen@ntnu.no, juhaugen@outlook.com
Reference (open access)
Figueira Haugen, J., Olaussen, J. O., & Solstad, J. T. (2025). Balancing act: How compliance and stringency of environmental regulations affect production growth in the Atlantic Salmon farming industry. Aquaculture Economics & Management, 1–29. https://doi.org/10.1080/13657305.2025.2540088
Editor at the digital magazine AquaHoy. He holds a degree in Aquaculture Biology from the National University of Santa (UNS) and a Master’s degree in Science and Innovation Management from the Polytechnic University of Valencia, with postgraduate diplomas in Business Innovation and Innovation Management. He possesses extensive experience in the aquaculture and fisheries sector, having led the Fisheries Innovation Unit of the National Program for Innovation in Fisheries and Aquaculture (PNIPA). He has served as a senior consultant in technology watch, an innovation project formulator and advisor, and a lecturer at UNS. He is a member of the Peruvian College of Biologists and was recognized by the World Aquaculture Society (WAS) in 2016 for his contribution to aquaculture.
