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Considering Aquacultural Externality in Coastal Land Allocation Decisions in India

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Abstract

Commercial aquaculture in India has come under attack for having caused negative agricultural and environmental impacts. This paper formulates an interactive model of non-renewable and renewable resources to characterize land allocations between aquaculture and agriculture in ecologically and economically sustainable fashion. Through an empirical application, various economic and policy circumstances that affect the optimal land allocation mix are evaluated. The aquaculture industry must address two economic effects: off-site negative effects on renewable food and other coastal resources, and on-site self-pollution of shrimp ponds. Current regulatory and land-use policies are inadequate to address these effects.

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Authors and Affiliations

  1. Environmental Studies Department, Florida International University, 11200 S.W, 8th Street, ECS 347, Miami, FL, 33199, USA

    Mahadev G. Bhat

  2. Department of Fisheries Economics, College of Fisheries, Mangalore, 575 002, India

    Ramachandra Bhatta

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  1. Mahadev G. Bhat
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  2. Ramachandra Bhatta
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Correspondence to Mahadev G. Bhat.

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Bhat, M.G., Bhatta, R. Considering Aquacultural Externality in Coastal Land Allocation Decisions in India. Environmental and Resource Economics 29, 1–20 (2004). https://doi.org/10.1023/B:EARE.0000035424.64335.6d

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  • DOI: https://doi.org/10.1023/B:EARE.0000035424.64335.6d

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