Should shrimp farmers pay paddy farmers? : the challenges of examining salinisation externalities in South India
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Date
2009
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SANDEE, Kathmandu, NP
Abstract
This study calculates the externality costs of salinization of land by comparing rice paddy yields in two similar villages in southern India. Shrimp farming causes two kinds of externality costs due to salinization: (i) An externality borne by the current generation due to decline in crop yields; (ii) An inter-generational externality borne by future generations because of environmental damage to land and groundwater resources. Findings show that if soil salinity is reduced to safe levels crop gains are estimated in the range of Rs 1,000 to Rs 5,000 per hectare. A regulatory framework for taxing externalities is recommended.
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Working Paper
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Keywords
ENVIRONMENTAL ECONOMICS, SHRIMP FARMING, SALT WATER, SOIL DEGRADATION, SOIL FERTILITY, AGRICULTURAL PRODUCTIVITY, INDIA, SALINIZATION, SOUTH ASIA, SHRIMPS, RICE, CROP LOSSES