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An Economic Analysis of Shrimp Farm Expansion and Mangrove Conversion in Thailand

Author

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  • Edward B. Barbier
  • Mark Cox

Abstract

We analyzed the factors determining mangrove conversion by shrimp farmers in the coastal provinces of Thailand between 1979–1996. The profit-maximizing behavior of a shrimp farmer converting mangrove area under open access conditions is modeled. Aggregate mangrove clearing by all farmers in coastal areas is empirically estimated through a provincial-level panel analysis. The price of shrimp, minimum wage, distance from market, ammonium phosphate price (used for feed), population growth, gross provincial product, and the density of shrimp farms influence mangrove clearing and shrimp farm expansion. Based on the analysis, various policy options to control mangrove deforestation in Thailand are reviewed.

Suggested Citation

  • Edward B. Barbier & Mark Cox, 2004. "An Economic Analysis of Shrimp Farm Expansion and Mangrove Conversion in Thailand," Land Economics, University of Wisconsin Press, vol. 80(3), pages 389-407.
    • Handle: RePEc:uwp:landec:v:80:y:2004:i:3:p:389-407
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    Citations

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    Cited by:

    1. Alison A. Ormbsby & Jeff Felardo & Robert Musci, 2021. "Multiple values from the forest: contribution of non-timber forest products to livelihoods of local communities in Northeastern Thailand," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(8), pages 11636-11645, August.
    2. Barbier,Edward B., 2007. "Natural Resources and Economic Development," Cambridge Books, Cambridge University Press, number 9780521706513.
    3. Shinde, Nilesh N. & Do Valle, Stella Z. Schons & Maia, Alexandre Gori & Amacher, Gregory S., 2022. "Can an environmental policy contribute to the reduction of land conflict? Evidence from the Rural Environmental Registry (CAR) in the Brazilian Amazon," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322584, Agricultural and Applied Economics Association.
    4. Ocampo-Thomason, P., 2006. "Mangroves, people and cockles: impacts of the shrimp-farming industry on mangrove communities in Esmeraldas Province, Ecuador," IWMI Books, Reports H039112, International Water Management Institute.
    5. Benjamin S. Thompson, 2019. "Payments for ecosystem services and corporate social responsibility: Perspectives on sustainable production, stakeholder relations, and philanthropy in Thailand," Business Strategy and the Environment, Wiley Blackwell, vol. 28(4), pages 497-511, May.
    6. Steinar Holden & Fredrik Wulfsberg, 2020. "Covid-19 i ISPK-modell med renteregel," Working Papers 202005, Oslo Metropolitan University, Oslo Business School.
    7. Miranda,Juan Jose & Butron,Luigi & Pantoja,Chrissie & Gunasekera,Rashmin, 2021. "Mangroves as Coastal Protection for Local Economic Activities from Hurricanes in the Caribbean," Policy Research Working Paper Series 9863, The World Bank.
    8. Shahriar abdullah & Dhrubo Barua & Md Sazzad Hossain, 2019. "Environmental Impacts of Commercial Shrimp Farming in Coastal Zone of Bangladesh and Approaches for Sustainable Management," International Journal of Environmental Sciences & Natural Resources, Juniper Publishers Inc., vol. 20(3), pages 84-92, July.
    9. Arquitt, Steve & Johnstone, Ron, 2008. "Use of system dynamics modelling in design of an environmental restoration banking institution," Ecological Economics, Elsevier, vol. 65(1), pages 63-75, March.
    10. Yi, Dale & Reardon, Thomas & Stringer, Randy, 2015. "Aquaculture technology and community based mangrove rehabilitation in Indonesia," 2015 Conference, August 9-14, 2015, Milan, Italy 211880, International Association of Agricultural Economists.
    11. Coxhead, Ian, 2007. "A New Resource Curse? Impacts of China's Boom on Comparative Advantage and Resource Dependence in Southeast Asia," World Development, Elsevier, vol. 35(7), pages 1099-1119, July.
    12. Yamamoto, Yuki, 2023. "Living under ecosystem degradation: Evidence from the mangrove–fishery linkage in Indonesia," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    13. Thompson, Benjamin S., 2018. "The political ecology of mangrove forest restoration in Thailand: Institutional arrangements and power dynamics," Land Use Policy, Elsevier, vol. 78(C), pages 503-514.
    14. Gasmi, Farid & Recuero Virto, Laura & Couvet, Denis, 2022. "Empirical analysis of the anthropogenic pressure on the mangrove blue carbon-economic growth relationship," TSE Working Papers 22-1307, Toulouse School of Economics (TSE).
    15. Gasmi, Farid & Recuero Virto, Laura & Couvet, Denis, 2023. "An empirical analysis of economic growth in countries exposed to coastal risks - Implications for their ecosystems," TSE Working Papers 23-1399, Toulouse School of Economics (TSE).
    16. Mads Greaker, 2020. "R&D in natural resource based industries: Governments should prioritize innovation which reduces environmental hazards," Working Papers 202004, Oslo Metropolitan University, Oslo Business School.
    17. Laura Recuero Virto & Denis Couvet, 2018. "Economic growth determinants in countries with blue carbon: Natural capital as a limiting factor ?," Working Papers 2018.06, FAERE - French Association of Environmental and Resource Economists.

    More about this item

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry

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