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Do Open Access Conditions Affect the Valuation of an Externality? Estimating the Welfare Effects of Mangrove-Fishery Linkages in Thailand

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  • Edward Barbier
  • Ivar Strand
  • Suthawan Sathirathai

Abstract

Mangroves are considered ecologicallyimportant due to their role as breedinggrounds and nursery habitats for off-shorefisheries. However, mangrove deforestationthrough conversion to shrimp aquaculturethreatens this valuable function. This paperdevelops a ‘dynamic’ production functionapproach to analyze the influence of habitatchanges on an open access fishery that faces afinite elasticity of demand. The basic modelis applied to a case study of the impacts ofmangrove deforestation on the artisanal marinedemersal and shellfish fisheries in Thailand. By estimating parameters through pooledtime-series and cross-sectional data over the1983–1993 period for the five coastal zones ofSouthern Thailand, the welfare impacts ofmangrove deforestation are estimated underdifferent elasticity of demand assumptions. Under pure open access, the welfare lossesestimated for mangrove deforestation inThailand of 30 km 2 annually ranged from$12,000 to $408,000 depending on theelasticity of demand. Copyright Kluwer Academic Publishers 2002

Suggested Citation

  • 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.
  • Handle: RePEc:kap:enreec:v:21:y:2002:i:4:p:343-365
    DOI: 10.1023/A:1015129502284
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    References listed on IDEAS

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    1. Jack Ruitenbeek, H., 1994. "Modelling economy-ecology linkages in mangroves: Economic evidence for promoting conservation in Bintuni Bay, Indonesia," Ecological Economics, Elsevier, vol. 10(3), pages 233-247, August.
    2. Swallow, Stephen K., 1990. "Depletion of the environmental basis for renewable resources: The economics of interdependent renewable and nonrenewable resources," Journal of Environmental Economics and Management, Elsevier, vol. 19(3), pages 281-296, November.
    3. 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.
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    7. 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.
    8. 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.
    9. Lynne, Gary D. & Conroy, Patricia & Prochaska, Frederick J., 1981. "Economic valuation of marsh areas for marine production processes," Journal of Environmental Economics and Management, Elsevier, vol. 8(2), pages 175-186, June.
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    Cited by:

    1. Barbier,Edward B., 2007. "Natural Resources and Economic Development," Cambridge Books, Cambridge University Press, number 9780521706513.
    2. Pongkijvorasin, Sittidaj & Burnett, Kimberly & Wada, Christopher, 2018. "Joint Management of an Interconnected Coastal Aquifer and Invasive Tree," Ecological Economics, Elsevier, vol. 146(C), pages 125-135.
    3. Thébaud, Olivier & Boschetti, Fabio & Jennings, Sarah & Smith, Anthony D.M. & Pascoe, Sean, 2015. "Of sets of offsets: Cumulative impacts and strategies for compensatory restoration," Ecological Modelling, Elsevier, vol. 312(C), pages 114-124.
    4. Bockstael, Nancy E. & Freeman III, A. Myrick, 2006. "Welfare Theory and Valuation," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 12, pages 517-570, Elsevier.
    5. 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. 150272, Agricultural and Applied Economics Association.
    6. Roumasset, James & Wada, Christopher A., 2013. "A dynamic approach to PES pricing and finance for interlinked ecosystem services: Watershed conservation and groundwater management," Ecological Economics, Elsevier, vol. 87(C), pages 24-33.
    7. Kimberly Burnett & James Roumasset & Christopher Wada, 2014. "Cost Optimal Joint Management of Interdependent Resources: Groundwater vs. Kiawe (Prosopis pallida)," Working Papers 2014-6, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    8. 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.

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