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

Posted: 5 Jun 2002

See all articles by Edward B. Barbier

Edward B. Barbier

Colorado State University, Fort Collins - Department of Economics

Ivar E. Strand

University of Maryland - Department of Agricultural & Resource Economics

Suthawan Sathirathai

Good Governance for Social Development & the Environmental Institute; University of Bangkok, Thailand - Faculty of Economics

Abstract

Mangroves are considered ecologically important due to their role as breeding grounds and nursery habitats for off-shore fisheries. However, mangrove deforestation through conversion to shrimp aquaculture threatens this valuable function. This paper develops a "dynamic" production function approach to analyze the influence of habitat changes on an open access fishery that faces a finite elastiticy of demand. The basic model is applied to a case study of the impacts of mangrove deforestation on the antisanal marine demersal and shellfish fisheries in Thailand. By estimating parameters through pooled time-series and cross-sectional data over the 1983-1993 period for the five coastal zones of Southern Thailand, the welfare impacts of mangrove deforestation are estimated under different elasticity of demand assumptions. Under pure open access, the welfare losses estimated for mangrove deforestation in Thailand of 30 km2 annually ranged from $12,000 to $408,000 depending on the elasticity of demand.

JEL Classification: O13, Q22, Q23

Suggested Citation

Barbier, Edward B. and Strand, Ivar E. and Sathirathai, Suthawan, Do Open Access Conditions Affect the Valuation of an Externality? Estimating the Welfare Effects of Mangrove-Fishery Linkages. Environmental and Resource Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=296862

Edward B. Barbier (Contact Author)

Colorado State University, Fort Collins - Department of Economics ( email )

Fort Collins, CO 80523-1771
United States

Ivar E. Strand

University of Maryland - Department of Agricultural & Resource Economics ( email )

Symmons Hall, Rm 2200
University of Maryland
College Park, MD 20742-5535
United States
301-405-1293 (Phone)

Suthawan Sathirathai

Good Governance for Social Development & the Environmental Institute ( email )

47/10 Soi Amorn Pan 4
Vipawadee-Rangsit Road
Bangkok, 10900
Thailand
9410787 (Phone)
9410787 (Fax)

University of Bangkok, Thailand - Faculty of Economics

Chulalongkorn
Thailand

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