Heterogeneity in Shadow Prices of Water Pollutants: A Study of the Seafood Processing Industry in Vietnam

Pham Khanh Nam (), Pham Nhu Man () and Truong Dang Thuy ()
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Pham Khanh Nam: School of Economics, University of Economics HCMC
Pham Nhu Man: The Joint Doctorate Programme, University of Economics HCMC and Erasmus University Rotterdam
Truong Dang Thuy: School of Economics, University of Economics HCMC

No 23-15, EfD Discussion Paper from Environment for Development, University of Gothenburg

Abstract: This study examines the marginal abatement costs (MACs) of three water pollutants (BOD, COD, and TSS) in the seafood processing industry in the Mekong River Delta of Vietnam. Using data on production activities and pollutant concentration, we estimate the MACs and analyze their relationship with firm characteristics. The results reveal significant heterogeneity in MACs, with younger firms, less labor-intensive firms, LLCs and joint-stock companies, firms located in seashore or riverside areas, and those with ISO or other certifications exhibiting lower MACs. These findings suggest that a uniform standard or environmental fee may not efficiently address pollutant reduction. Instead, a tradable permit system could be a more effective approach.

Keywords: seafood; water pollutants; marginal abatement cost; directional distance function (search for similar items in EconPapers)
JEL-codes: Q22 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2023-09-23
New Economics Papers: this item is included in nep-eff, nep-env, nep-sea and nep-tra
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Citations: View citations in EconPapers (1)

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