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Mekong River Delta farm-household willingness to pay for salinity intrusion risk reduction

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  • Khong, Tien Dung
  • Young, Michael D.
  • Loch, Adam
  • Thennakoon, Jayanthi

Abstract

Sea level rise and upstream development is causing salinity intrusion in Vietnam’s Mekong River Delta (MRD) and, as a consequence, agricultural productivity is declining. As the Vietnamese government and local communities search for a solution, it has become apparent that there are insufficient public resources to build the dykes necessary to control this problem. So, we employ a referendum contingent valuation methodology (CVM) to determine whether or not farm households might be willing to pay for part of the cost of a salinity intrusion risk reduction program. We find that farm households are willing to contribute funds to such a program. In areas where salinity intrusion is already reducing productivity, farm households are willing to contribute US$2.58 per month. In areas where salinity intrusion is expected to be reducing productivity by 2030, willingness to contribute is US$1.99 per month. Surprisingly, in MRD areas where salinity intrusion is not expected within the next 15 years, willingness to contribute remains positive at US$1.32 per month. These findings have local, national and international implications that require careful consideration. In passing, we make a methodological observation that a treatment model including ‘do not know’ responses provides consistent results with conventional referendum elicitation procedures.

Suggested Citation

  • Khong, Tien Dung & Young, Michael D. & Loch, Adam & Thennakoon, Jayanthi, 2018. "Mekong River Delta farm-household willingness to pay for salinity intrusion risk reduction," Agricultural Water Management, Elsevier, vol. 200(C), pages 80-89.
  • Handle: RePEc:eee:agiwat:v:200:y:2018:i:c:p:80-89
    DOI: 10.1016/j.agwat.2017.12.010
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    Cited by:

    1. Tien D. N. Ho & John K. M. Kuwornu & Takuji W. Tsusaka, 2022. "Factors Influencing Smallholder Rice Farmers’ Vulnerability to Climate Change and Variability in the Mekong Delta Region of Vietnam," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(1), pages 272-302, February.
    2. Tien D. N. Ho & Takuji W. Tsusaka & John K. M. Kuwornu & Avishek Datta & Loc T. Nguyen, 2022. "Do rice varieties matter? Climate change adaptation and livelihood diversification among rural smallholder households in the Mekong Delta region of Vietnam," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 27(1), pages 1-33, January.
    3. Ho, Tien D. N. & Tsusaka, Takuji W. & Kuwornu, John K. M. & Datta, Avishek & Nguyen, Loc T., 2021. "Determinants of climate adaptation by smallholder rice producers: livelihood diversification in the Mekong Delta Region of Vietnam," 2021 ASAE 10th International Conference (Virtual), January 11-13, Beijing, China 329401, Asian Society of Agricultural Economists (ASAE).
    4. Tien Dung Khong & Yen Dan Tong & Le Thai Hanh Bui, 2023. "Cost-Benefit Analysis and Model Preference of Public Transportation in Can Tho City, Vietnam," Sustainability, MDPI, vol. 15(9), pages 1-17, April.
    5. Khong, Tien Dung, 2022. "Vertical and Horizontal Coordination in Developing Countries' Agriculture: Evidence from Vietnam and Implications," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 12(01), January.

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    More about this item

    Keywords

    Climate change; Willingness to pay; Referendum;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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