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The effect of port development on coastal water quality: Evidence of eutrophication states in Indonesia

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  • Yudhistira, Muhammad Halley
  • Karimah, Indra Degree
  • Maghfira, Nadya Rahmi

Abstract

Developing transport infrastructure must involve a comprehensive cost-benefit analysis, and accounting for environmental quality changes associated with such an infrastructure is one important aspect that can help complete this problem. In this study, we used difference-in-difference to estimate coastal water quality changes, measured by the Chlorophyll-a concentration, related to port development in Indonesia over the last decade. Using unique MODIS-derived monthly water quality data, we found that the presence of a local small port causes a 1.7% increase in Chlorophyll-a in coastal areas within 6 km of the port. The effects are concentrated in the first two months of operation, and there is also evidence for anticipation effects associated with the construction period. We found a greater effect in Indonesia's eastern regions, which rely on small ports for their local activities. Furthermore, we argue that the effect can be substantial in a larger port, despite posing a limited risk on marine pollution.

Suggested Citation

  • Yudhistira, Muhammad Halley & Karimah, Indra Degree & Maghfira, Nadya Rahmi, 2022. "The effect of port development on coastal water quality: Evidence of eutrophication states in Indonesia," Ecological Economics, Elsevier, vol. 196(C).
    • Handle: RePEc:eee:ecolec:v:196:y:2022:i:c:s0921800922000775
    DOI: 10.1016/j.ecolecon.2022.107415
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    Cited by:

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    More about this item

    Keywords

    Port; Coastal water quality; Chlorophyll-a; Indonesia; Marine pollution; Difference-in-difference;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • N75 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Asia including Middle East
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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