An Economic Analysis of Water Infrastructure Investments, Agricultural Productivity and Climate Change in the Mekong Delta: Adapting to Increased Salinity and Sea Level Rise

David Corderi Novoa, Jeffrey Williams, Richard E. Howitt and Jay R. Lund

No 103875, 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania from Agricultural and Applied Economics Association

Abstract: The Mekong Delta faces major land and water challenges. Agriculture production in the downstream areas is currently constrained by salinity intrusion in the dry season. Climate change will most likely increase salinity concentration levels in the dry season due to a combination of higher sea level and lower upstream river flows. Adapting to increased salinity may involve changing cropping patterns, constructing new water infrastructure or abandoning land. We analyze the economics of adapting agriculture to increased salinity in the coastal districts of Long An province. Results suggest that productivity losses can be alleviated by shifting to high value and more salt-resistant crops. We also find that the optimal timing for investment in water infrastructure depends on the rate of increase in salinity levels and that there is a tradeoff between protecting upstream areas versus areas that are closer to the sea.

Keywords: Crop Production/Industries; Environmental Economics and Policy; International Development; Production Economics; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 2
Date: 2011-05-04
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea11:103875

DOI: 10.22004/ag.econ.103875

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