IDEAS home Printed from https://ideas.repec.org/a/eee/jeeman/v118y2023ics0095069623000062.html
   My bibliography  Save this article

Living under ecosystem degradation: Evidence from the mangrove–fishery linkage in Indonesia

Author

Listed:
  • Yamamoto, Yuki

Abstract

This study examines the impacts of ecosystem degradation on social welfare, focusing on the mangrove–fishery linkage in Indonesia. Using nationally representative household data combined with satellite information on spatiotemporal mangrove loss, the study finds that fishery households experienced a decline in annual income ranging from 5.3% to 9.8% in response to a 1% increase in mangrove loss in the region. Under the income shock, fishery households increased their labor input and decreased their non-food consumption; however, they continued being part of the fishery industry. Furthermore, according to a back-of-the-envelope calculation, the potential economic value of mangrove conservation, estimated in terms of fishery production reached 22,861 US$/hectare/year. This makes conservation substantially more cost-effective than alternative land uses, such as aquaculture and oil palm plantations. These findings highlight the need to support mangrove forest conservation to achieve sustainable development and ecosystem conservation.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:jeeman:v:118:y:2023:i:c:s0095069623000062
    DOI: 10.1016/j.jeem.2023.102788
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0095069623000062
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jeem.2023.102788?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hoang, Trung Xuan & Le, Duong Trung & Nguyen, Ha Minh & Vuong, Nguyen Dinh Tuan, 2020. "Labor market impacts and responses: The economic consequences of a marine environmental disaster," Journal of Development Economics, Elsevier, vol. 147(C).
    2. Edward B. Barbier, 2012. "Progress and Challenges in Valuing Coastal and Marine Ecosystem Services," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 6(1), pages 1-19.
    3. David H. Autor & David Dorn & Gordon H. Hanson, 2013. "The China Syndrome: Local Labor Market Effects of Import Competition in the United States," American Economic Review, American Economic Association, vol. 103(6), pages 2121-2168, October.
    4. Edward Barbier & Ivar Strand, 1998. "Valuing Mangrove-Fishery Linkages – A Case Study of Campeche, Mexico," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(2), pages 151-166, September.
    5. Sharon Maccini & Dean Yang, 2009. "Under the Weather: Health, Schooling, and Economic Consequences of Early-Life Rainfall," American Economic Review, American Economic Association, vol. 99(3), pages 1006-1026, June.
    6. David H. Autor & David Dorn & Gordon H. Hanson & Jae Song, 2014. "Trade Adjustment: Worker-Level Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(4), pages 1799-1860.
    7. Edward B. Barbier & Suthawan Sathirathai (ed.), 2004. "Shrimp Farming and Mangrove Loss in Thailand," Books, Edward Elgar Publishing, number 3252.
    8. Peter I. Macreadie & Andrea Anton & John A. Raven & Nicola Beaumont & Rod M. Connolly & Daniel A. Friess & Jeffrey J. Kelleway & Hilary Kennedy & Tomohiro Kuwae & Paul S. Lavery & Catherine E. Loveloc, 2019. "Author Correction: The future of Blue Carbon science," Nature Communications, Nature, vol. 10(1), pages 1-1, December.
    9. Matin Qaim & Kibrom T. Sibhatu & Hermanto Siregar & Ingo Grass, 2020. "Environmental, Economic, and Social Consequences of the Oil Palm Boom," Annual Review of Resource Economics, Annual Reviews, vol. 12(1), pages 321-344, October.
    10. Jacob P. Hochard & Stuart Hamilton & Edward B. Barbier, 2019. "Mangroves shelter coastal economic activity from cyclones," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 116(25), pages 12232-12237, June.
    11. Pandeya, B. & Buytaert, W. & Zulkafli, Z. & Karpouzoglou, T. & Mao, F. & Hannah, D.M., 2016. "A comparative analysis of ecosystem services valuation approaches for application at the local scale and in data scarce regions," Ecosystem Services, Elsevier, vol. 22(PB), pages 250-259.
    12. Edward B. Barbier, 2003. "Habitat–Fishery Linkages And Mangrove Loss In Thailand," Contemporary Economic Policy, Western Economic Association International, vol. 21(1), pages 59-77, January.
    13. Emerick, Kyle, 2018. "Agricultural productivity and the sectoral reallocation of labor in rural India," Journal of Development Economics, Elsevier, vol. 135(C), pages 488-503.
    14. Christie, Mike & Fazey, Ioan & Cooper, Rob & Hyde, Tony & Kenter, Jasper O., 2012. "An evaluation of monetary and non-monetary techniques for assessing the importance of biodiversity and ecosystem services to people in countries with developing economies," Ecological Economics, Elsevier, vol. 83(C), pages 67-78.
    15. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
    16. Anneboina, Lavanya Ravikanth & Kavi Kumar, K.S., 2017. "Economic analysis of mangrove and marine fishery linkages in India," Ecosystem Services, Elsevier, vol. 24(C), pages 114-123.
    17. Kenneth Y. Chay & Michael Greenstone, 2005. "Does Air Quality Matter? Evidence from the Housing Market," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 376-424, April.
    18. Edward Barbier & Ivar Strand & Suthawan Sathirathai, 2002. "Do Open Access Conditions Affect the Valuation of an Externality? Estimating the Welfare Effects of Mangrove-Fishery Linkages in Thailand," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 21(4), pages 343-365, April.
    19. United Nations UN, 2015. "Transforming our World: the 2030 Agenda for Sustainable Development," Working Papers id:7559, eSocialSciences.
    20. Alan Barreca & Karen Clay & Olivier Deschenes & Michael Greenstone & Joseph S. Shapiro, 2016. "Adapting to Climate Change: The Remarkable Decline in the US Temperature-Mortality Relationship over the Twentieth Century," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 105-159.
    21. Gibson, John & Olivia, Susan & Boe-Gibson, Geua & Li, Chao, 2021. "Which night lights data should we use in economics, and where?," Journal of Development Economics, Elsevier, vol. 149(C).
    22. Miteva, Daniela A. & Murray, Brian C. & Pattanayak, Subhrendu K., 2015. "Do protected areas reduce blue carbon emissions? A quasi-experimental evaluation of mangroves in Indonesia," Ecological Economics, Elsevier, vol. 119(C), pages 127-135.
    23. Frederik Noack & Marie-Catherine Riekhof & Salvatore Di Falco, 2019. "Droughts, Biodiversity, and Rural Incomes in the Tropics," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 6(4), pages 823-852.
    24. Michler, Jeffrey D. & Baylis, Kathy & Arends-Kuenning, Mary & Mazvimavi, Kizito, 2019. "Conservation agriculture and climate resilience," Journal of Environmental Economics and Management, Elsevier, vol. 93(C), pages 148-169.
    25. Marwa E. Salem & D. Evan Mercer, 2012. "The Economic Value of Mangroves: A Meta-Analysis," Sustainability, MDPI, vol. 4(3), pages 1-25, March.
    26. Austin, K.G. & Mosnier, A. & Pirker, J. & McCallum, I. & Fritz, S. & Kasibhatla, P.S., 2017. "Shifting patterns of oil palm driven deforestation in Indonesia and implications for zero-deforestation commitments," Land Use Policy, Elsevier, vol. 69(C), pages 41-48.
    27. Jiaxiu He & Haoming Liu & Alberto Salvo, 2019. "Severe Air Pollution and Labor Productivity: Evidence from Industrial Towns in China," American Economic Journal: Applied Economics, American Economic Association, vol. 11(1), pages 173-201, January.
    28. Yamamoto, Yuki & Shigetomi, Yosuke & Ishimura, Yuichi & Hattori, Mitsuru, 2019. "Forest change and agricultural productivity: Evidence from Indonesia," World Development, Elsevier, vol. 114(C), pages 196-207.
    29. Peter I. Macreadie & Andrea Anton & John A. Raven & Nicola Beaumont & Rod M. Connolly & Daniel A. Friess & Jeffrey J. Kelleway & Hilary Kennedy & Tomohiro Kuwae & Paul S. Lavery & Catherine E. Loveloc, 2019. "The future of Blue Carbon science," Nature Communications, Nature, vol. 10(1), pages 1-13, December.
    30. Grantham, Hedley S. & Agostini, Vera N. & Wilson, Joanne & Mangubhai, Sangeeta & Hidayat, Nur & Muljadi, Andreas & Muhajir, & Rotinsulu, Chris & Mongdong, Meity & Beck, Michael W. & Possingham, Hugh P, 2013. "A comparison of zoning analyses to inform the planning of a marine protected area network in Raja Ampat, Indonesia," Marine Policy, Elsevier, vol. 38(C), pages 184-194.
    31. Barbier, Edward B., 2000. "Valuing the environment as input: review of applications to mangrove-fishery linkages," Ecological Economics, Elsevier, vol. 35(1), pages 47-61, October.
    32. Chaijaroen, Pasita, 2019. "Long-lasting income shocks and adaptations: Evidence from coral bleaching in Indonesia," Journal of Development Economics, Elsevier, vol. 136(C), pages 119-136.
    33. Michael Euler & Stefan Schwarze & Hermanto Siregar & Matin Qaim, 2016. "Oil Palm Expansion among Smallholder Farmers in Sumatra, Indonesia," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 658-676, September.
    34. Naylor, Rosamond & Drew, Mark, 1998. "Valuing mangrove resources in Kosrae, Micronesia," Environment and Development Economics, Cambridge University Press, vol. 3(4), pages 471-490, October.
    35. Tilman, David & Polasky, Stephen & Lehman, Clarence, 2005. "Diversity, productivity and temporal stability in the economies of humans and nature," Journal of Environmental Economics and Management, Elsevier, vol. 49(3), pages 405-426, May.
    36. Claire W. Armstrong & Naomi S. Foley & Viktoria Kahui, 2016. "A Production Function Analysis of Fisheries and Habitat: Open Access versus Optimal Management," Land Economics, University of Wisconsin Press, vol. 92(4), pages 760-771.
    37. S Sathirathai & EB Barbier, 2001. "Valuing Mangrove Conservation In Southern Thailand," Contemporary Economic Policy, Western Economic Association International, vol. 19(2), pages 109-122, April.
    38. Gatto, Marcel & Wollni, Meike & Asnawi, Rosyani & Qaim, Matin, 2017. "Oil Palm Boom, Contract Farming, and Rural Economic Development: Village-Level Evidence from Indonesia," World Development, Elsevier, vol. 95(C), pages 127-140.
    39. Sager, Lutz, 2019. "Estimating the effect of air pollution on road safety using atmospheric temperature inversions," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    40. Sebastian Axbard, 2016. "Income Opportunities and Sea Piracy in Indonesia: Evidence from Satellite Data," American Economic Journal: Applied Economics, American Economic Association, vol. 8(2), pages 154-194, April.
    41. Das, Saudamini, 2017. "Ecological Restoration and Livelihood: Contribution of Planted Mangroves as Nursery and Habitat for Artisanal and Commercial Fishery," World Development, Elsevier, vol. 94(C), pages 492-502.
    42. 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.
    43. Jakovac, Catarina C. & Latawiec, Agnieszka Ewa & Lacerda, Eduardo & Leite Lucas, Isabella & Korys, Katarzyna Anna & Iribarrem, Alvaro & Malaguti, Gustavo Abreu & Turner, R. Kerry & Luisetti, Tiziana &, 2020. "Costs and Carbon Benefits of Mangrove Conservation and Restoration: A Global Analysis," Ecological Economics, Elsevier, vol. 176(C).
    44. Edward Miguel & Shanker Satyanath & Ernest Sergenti, 2004. "Economic Shocks and Civil Conflict: An Instrumental Variables Approach," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 725-753, August.
    45. Edward B. Barbier, 2007. "Valuing ecosystem services as productive inputs [‘Valuing groundwater recharge through agricultural production in the Hadejia-Jama’are wetlands in northern Nigeria’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 22(49), pages 178-229.
    46. Peter J. Mumby & Alasdair J. Edwards & J. Ernesto Arias-González & Kenyon C. Lindeman & Paul G. Blackwell & Angela Gall & Malgosia I. Gorczynska & Alastair R. Harborne & Claire L. Pescod & Henk Renken, 2004. "Mangroves enhance the biomass of coral reef fish communities in the Caribbean," Nature, Nature, vol. 427(6974), pages 533-536, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tanner, Michael K. & Moity, Nicolas & Costa, Matthew T. & Marin Jarrin, Jose R. & Aburto-Oropeza, Octavio & Salinas-de-León, Pelayo, 2019. "Mangroves in the Galapagos: Ecosystem services and their valuation," Ecological Economics, Elsevier, vol. 160(C), pages 12-24.
    2. Barbier, Edward B., 2012. "A spatial model of coastal ecosystem services," Ecological Economics, Elsevier, vol. 78(C), pages 70-79.
    3. Edward B. Barbier & Angela Cindy Emefa Mensah & Michelan Wilson, 2023. "Valuing the Environment as Input, Ecosystem Services and Developing Countries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(3), pages 677-694, March.
    4. Godwin K. Vondolia & Wenting Chen & Claire W. Armstrong & Magnus D. Norling, 2020. "Bioeconomic Modelling of Coastal Cod and Kelp Forest Interactions: Co-benefits of Habitat Services, Fisheries and Carbon Sinks," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(1), pages 25-48, January.
    5. Kubitza, Christoph & Vijesh, Krishna V. & Klasen, Stephan & Kopp, Thomas & Nuryartono, Nunung & Qaim, Matin, 2021. "Labor Displacement in Agriculture: The Case of Oil Palm in Indonesia," 2021 Conference, August 17-31, 2021, Virtual 314982, International Association of Agricultural Economists.
    6. Barbier,Edward B., 2007. "Natural Resources and Economic Development," Cambridge Books, Cambridge University Press, number 9780521706513.
    7. M. Brander, Luke & J. Wagtendonk, Alfred & S. Hussain, Salman & McVittie, Alistair & Verburg, Peter H. & de Groot, Rudolf S. & van der Ploeg, Sander, 2012. "Ecosystem service values for mangroves in Southeast Asia: A meta-analysis and value transfer application," Ecosystem Services, Elsevier, vol. 1(1), pages 62-69.
    8. James Sanchirico & Michael Springborn, 2011. "How to Get There From Here: Ecological and Economic Dynamics of Ecosystem Service Provision," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(2), pages 243-267, February.
    9. Kubitza, Christoph & Dib, Jonida Bou & Kopp, Thomas & Krishna, Vijesh V. & Nuryartono, Nunung & Qaim, Matin & Romero, Miriam & Klasen, Stephan, 2019. "Labor savings in agriculture and inequality at different spatial scales: The expansion of oil palm in Indonesia," EFForTS Discussion Paper Series 26, University of Goettingen, Collaborative Research Centre 990 "EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)".
    10. Solomon Hsiang & Paulina Oliva & Reed Walker, 2019. "The Distribution of Environmental Damages," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 13(1), pages 83-103.
    11. Mykoniatis, Nikolaos & Ready, Richard, 2013. "Evaluating habitat-fishery interactions: The case of Submerged Aquatic Vegetation and Blue Crab fishery in the Chesapeake Bay," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150683, Agricultural and Applied Economics Association.
    12. Edward B. Barbier, 2003. "Habitat–Fishery Linkages And Mangrove Loss In Thailand," Contemporary Economic Policy, Western Economic Association International, vol. 21(1), pages 59-77, January.
    13. Edward B. Barbier & Mark Cox, 2003. "Does Economic Development Lead to Mangrove Loss? A Cross‐Country Analysis," Contemporary Economic Policy, Western Economic Association International, vol. 21(4), pages 418-432, October.
    14. De Valck, Jeremy & Beames, Alistair & Liekens, Inge & Bettens, Maarten & Seuntjens, Piet & Broekx, Steven, 2019. "Valuing urban ecosystem services in sustainable brownfield redevelopment," Ecosystem Services, Elsevier, vol. 35(C), pages 139-149.
    15. Das, Saudamini, 2017. "Ecological Restoration and Livelihood: Contribution of Planted Mangroves as Nursery and Habitat for Artisanal and Commercial Fishery," World Development, Elsevier, vol. 94(C), pages 492-502.
    16. Dang, Hai-Anh & Hallegatte, Stephane & Trinh, Trong-Anh, 2023. "Does Global Warming Worsen Poverty and Inequality? An Updated Review," IZA Discussion Papers 16570, Institute of Labor Economics (IZA).
    17. Hagger, Valerie & Waltham, Nathan J. & Lovelock, Catherine E., 2022. "Opportunities for coastal wetland restoration for blue carbon with co-benefits for biodiversity, coastal fisheries, and water quality," Ecosystem Services, Elsevier, vol. 55(C).
    18. Chrisendo, Daniel & Siregar, Hermanto & Qaim, Matin, 2022. "Oil palm cultivation improves living standards and human capital formation in smallholder farm households," World Development, Elsevier, vol. 159(C).
    19. Michler, Jeffrey D. & Josephson, Anna & Kilic, Talip & Murray, Siobhan, 2022. "Privacy protection, measurement error, and the integration of remote sensing and socioeconomic survey data," Journal of Development Economics, Elsevier, vol. 158(C).
    20. Wolfgang Dauth & Sebastian Findeisen & Jens Suedekum, 2014. "The Rise Of The East And The Far East: German Labor Markets And Trade Integration," Journal of the European Economic Association, European Economic Association, vol. 12(6), pages 1643-1675, December.

    More about this item

    Keywords

    Ecosystem services; Development; Income shock; Consumption; Labor supply; Indonesia;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • 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
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jeeman:v:118:y:2023:i:c:s0095069623000062. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622870 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.