EconPapers    
Economics at your fingertips  
 

Land subsidence, production efficiency, and the decision of aquacultural firms in Taiwan to discontinue production

Hung-Hao Chang (), Richard N. Boisvert and Ling-Yi Hung

Ecological Economics, 2010, vol. 69, issue 12, 2448-2456

Abstract: For some time the over-pumping of groundwater by aquacultural producers has contributed to severe problems with land subsidence in many areas of Taiwan. This has led to policy initiatives that impose extra costs on groundwater users. By investigating the effects of the conditions of aquifers, production efficiency and other factors on decisions of Taiwanese aquacultural producers to exit the industry, this paper lays an important foundation for an understanding of the effects of these policy initiatives. Using data from a nationwide survey, this exit decision is examined using an innovative empirical strategy that combines Data Envelopment Analysis with a discrete choice econometric model. Results indicate that less efficient firms and those located in areas where land subsidence is severe are more likely to exit. These relationships may in part reflect the effectiveness of the recent policy changes to reduce land subsidence attributable to aquaculture production.

Keywords: Aquaculture; Land; subsidence; Production; efficiency; Data; envelopment; analysis; Discrete; choice; models; Taiwan (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0921-8009(10)00286-7
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:69:y:2010:i:12:p:2448-2456

Access Statistics for this article

Ecological Economics is currently edited by C. J. Cleveland

More articles in Ecological Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2021-08-26
Handle: RePEc:eee:ecolec:v:69:y:2010:i:12:p:2448-2456