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Heterogeneity in Shadow Prices of Water Pollutants: A Study of the Seafood Processing Industry in Vietnam

Author

Listed:
  • Nam, Pham Khanh

    (School of Economics, University of Economics HCMC)

  • Man, Pham Nhu

    (The Joint Doctorate Programme, University of Economics HCMC and Erasmus University Rotterdam)

  • Thuy, Truong Dang

    (School of Economics, University of Economics HCMC)

Abstract

This study examines the marginal abatement costs (MACs) of three water pollutants (BOD, COD, and TSS) in the seafood processing industry in the Mekong River Delta of Vietnam. Using data on production activities and pollutant concentration, we estimate the MACs and analyze their relationship with firm characteristics. The results reveal significant heterogeneity in MACs, with younger firms, less labor-intensive firms, LLCs and joint-stock companies, firms located in seashore or riverside areas, and those with ISO or other certifications exhibiting lower MACs. These findings suggest that a uniform standard or environmental fee may not efficiently address pollutant reduction. Instead, a tradable permit system could be a more effective approach.

Suggested Citation

  • Nam, Pham Khanh & Man, Pham Nhu & Thuy, Truong Dang, 2023. "Heterogeneity in Shadow Prices of Water Pollutants: A Study of the Seafood Processing Industry in Vietnam," EfD Discussion Paper 23-15, Environment for Development, University of Gothenburg.
    • Handle: RePEc:hhs:gunefd:2023_015
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    References listed on IDEAS

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    More about this item

    Keywords

    seafood; water pollutants; marginal abatement cost; directional distance function;
    All these keywords.

    JEL classification:

    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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