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An Economic Analysis of Water Infrastructure Investments, Agricultural Productivity and Climate Change in the Mekong Delta: Adapting to Increased Salinity and Sea Level Rise

Author

Listed:
  • Corderi Novoa, David
  • Williams, Jeffrey C.
  • Howitt, Richard E.
  • Lund, Jay R.

Abstract

The Mekong Delta faces major land and water challenges. Agriculture production in the downstream areas is currently constrained by salinity intrusion in the dry season. Climate change will most likely increase salinity concentration levels in the dry season due to a combination of higher sea level and lower upstream river flows. Adapting to increased salinity may involve changing cropping patterns, constructing new water infrastructure or abandoning land. We analyze the economics of adapting agriculture to increased salinity in the coastal districts of Long An province. Results suggest that productivity losses can be alleviated by shifting to high value and more salt-resistant crops. We also find that the optimal timing for investment in water infrastructure depends on the rate of increase in salinity levels and that there is a tradeoff between protecting upstream areas versus areas that are closer to the sea.

Suggested Citation

  • Corderi Novoa, David & Williams, Jeffrey C. & Howitt, Richard E. & Lund, Jay R., 2011. "An Economic Analysis of Water Infrastructure Investments, Agricultural Productivity and Climate Change in the Mekong Delta: Adapting to Increased Salinity and Sea Level Rise," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103875, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea11:103875
    DOI: 10.22004/ag.econ.103875
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    References listed on IDEAS

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    1. Pierre Mérel & Santiago Bucaram, 2010. "Exact calibration of programming models of agricultural supply against exogenous supply elasticities," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 37(3), pages 395-418, September.
    2. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
    3. Richard E. Howitt, 1995. "A Calibration Method For Agricultural Economic Production Models," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(2), pages 147-159, May.
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