The Economics of Aquatic Plants: The Case of Algae and Duckweed

Abstract

This review examines global microalgae, seaweeds, and duckweed (MSD) production status and trends. It focuses on cultivation, recognizing the sector's existing and potential contributions and benefits, highlighting a variety of constraints and barriers over the sector's sustainable development. It also discusses lessons learned and ways forward to unlock the sector's full potential. In contrast to conventional agriculture crops, MSD can rapidly generate large amounts of biomass and carbon sequestration yet does not compete for arable land and potable water, ensuring minimal environmental impacts. Moreover, MSD's applications are ubiquitous and reach almost every industrial sector, including ones essential to meeting the increasing needs of human society, such as foods, pharmaceuticals, and chemicals. To this end, the growing public awareness regarding climate change, sustainable food, and animal welfare yields a significant shift in consumer preference and propels the demand for MSD. In addition, once governments usher in durable and stable carbon policies, the markets for MSD are likely to increase severalfold. Expected final online publication date for the Annual Review of Resource Economics, Volume 14 is October 2022. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.

Algae-Based Two-Stage Supply Chain with Co-Products

“…Macroalgae have been popular in Asian cuisine for centuries. Their high biomass growth rates, and the high content of organic compounds such as polyunsaturated fatty acids, led to an increase in consumer demand for algae products and the commercial interest in seaweed production during the last several decades (Hochman & Palatnik, 2022). Seaweed farms bring benefits beyond the immediate value of their crop.…”

“…Philippines, Tanzania, Indonesia) and if processed for food (Cai, et al, 2021). Cultivation in developed countries and processing for fuels and high-value commodities are not yet economically viable (Hochman & Palatnik, 2022). The main reasons are relatively low prices of substitutes (such as corn bioethanol), and immature technologies of industrial, autonomous cultivation, and biorefining (Palatnik & Zilberman, 2017).…”

“…Following Ingle, et al (2017), we consider investments into Red macroalgae (Kappaphycus alvarezii) production (first stage of ISC) and processing into two outputs: industrial proteins and unique polysaccharides -carrageenan (second stage). The macroalgaebased industry is characterized by traditional methods of cultivation and drying in Asia, and by the developing novel technologies of cultivation and processing in developed countries (Hochman & Palatnik, 2022). Accordingly, we apply the model to two case studies: the Philippines, as the representative of the world leader with traditional macroalgae economy in East Asia with low-value applications (Cai, et al, 2021), and Ireland, as the representative of the developed economy that promotes advances in macroalgae-based bioeconomy (Araújo, et al, 2021).…”

Preface to the Fifteenth Volume of the Annual Review of Resource Economics

“…Of course, the bioeconomy extends well beyond crop-based ethanol. Hochman & Palatnik (2022) documented research on the potential of algae and duckweed for energy production, Masum et al (2019) provided an overview of the wood-based bioenergy sector, and Rausser & Zilberman (2022) argued that the bioeconomy can play a vital role in addressing climate change challenges by producing more efficient food products, replacing non-renewables with renewables, and capturing and sequestering carbon. Some reviews documented the impact of policies aimed at transitioning to a sustainable and green economy.…”