An Optimal Corrective Tax for Thai Shrimp Farming
“If Thai shrimp farming were taxed, how much should it be?” is the key re-search question of this paper. The dynamic-constraint optimization model in-corporating accumulated nutrient load from farm discharges is applied in the analysis. The model implies some tax has to be imposed on stock externality that is equal to increasing shadow cost of nutrient stock before damage occurs. However, the simulation results show very small shadow costs at the beginning of the paths and indicate that nutrient load in Andaman has a negligible effect on the sea but significant on the Gulf of Thailand. A socially efficient level of production for Thailand would be around 70-80% of private optimal produc-tion. The tax regime ensures a higher net gain from trade than at private opti-mum but it is ambiguous in term of net social welfare.
|Date of creation:||Apr 2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (+45) 6550 1000
Fax: (+45) 6550 1091
Web page: http://www.sam.sdu.dk/imeEmail:
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:sdk:wpaper:64. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ulla H. Oehlenschläger)
If references are entirely missing, you can add them using this form.