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Aquaculture Farmers' Economic Risks Due to Climate Change: Evidence from Vietnam

Author

Listed:
  • Thanh Viet Nguyen

    (University of Akureyri, Iceland)

  • Tuyen Quang Tran

    (Vietnam National University, Hanoi, Vietnam
    Thang Long University, Hanoi, Vietnam)

  • Dewan Ahsan

    (Southern Denmark University, Odense, Denmark)

Abstract

Climate change poses a serious threat for aquacultural productivity. Employing the Autoregressive Distributed Lag (ARDL) model, this research aims to evaluate the economic impact of climate change on aquaculture in Vietnam, drawing on time series data from 1981 to 2013 and including aquaculture yield, acreage, investment, labor, temperature, rainfall, and damage costs to aquaculture caused by natural disasters. The results show that aquaculture yield depends not only on the current value of inputs, but also on their lag values and the yield itself. The results also show that rainfall, storm surges and tropical cyclones negatively affect aquaculture production. After any natural disaster, it takes at least two years to recover from the repercussions for productivity and return to the previous norm. To reduce the vulnerability of aquacultural communities, this study suggests that the state could establish a climate resilience fund specifically for small and medium-scale aquaculture farmers, providing special financial support for those affected by natural disasters.

Suggested Citation

  • Thanh Viet Nguyen & Tuyen Quang Tran & Dewan Ahsan, 2022. "Aquaculture Farmers' Economic Risks Due to Climate Change: Evidence from Vietnam," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 8(1), pages 42-53.
    • Handle: RePEc:men:journl:v:8:y:2022:i:1:p:42-53
    DOI: 10.11118/ejobsat.2022.006
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    Keywords

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    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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