Hostname: page-component-586b7cd67f-rcrh6 Total loading time: 0 Render date: 2024-11-27T21:42:32.908Z Has data issue: false hasContentIssue false
  • English
  • Français

Subsidy policy for the retirement of aquaculture on the southwest coast of Taiwan: a case study of Budai township, Chia-Yi county

Published online by Cambridge University Press:  01 August 2008

CHAO-NING LIAO  and
MING-HSIANG CHEN
CHAO-NING LIAO
Affiliation:
Department of Economics, National Cheng-Kung University, Tainan, Taiwan. Tel.: +886-6-275-7575 ext. 56321. Fax: +886-6-276-6491. Email: [email protected]
MING-HSIANG CHEN
Affiliation:
Department of Finance, National Chung Cheng University
Get access Rights & Permissions [Opens in a new window]

Abstract

This paper attempts to explore how the Taiwan government can effectively use subsidies to retire aquacultural farms based on the externality ground subsidence from pumping groundwater, using the town of Budai in Chia-Yi county as an example. The research first constructs the relationship between ground subsidence and groundwater consumption after taking the externality into consideration. An economic model that minimizes the total subsidy expenditure is then used for targeting the fish farms that need to be retired first in order to meet environmental goals. The results show that when the interaction caused by pumping groundwater among neighborhood farmers is considered, the responsibility for achieving the targets of environmental control is not evenly shared by aquacultural farmers. The location, and not the farm size, plays a more important role in determining whether environmental goals can be met.

Type
Research Article
Information
Environment and Development Economics , Volume 13 , Issue 4 , August 2008 , pp. 517 - 536
Copyright
Copyright © Cambridge University Press 2008

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Babcock, B.A., Lakshminarayan, P.G., Wu, J., and Zilberman, D. 1996, ‘The economics of a public fund for environmental amenities: a study of CRP contracts’, American Journal of Agricultural Economics 85: 961–971.CrossRefGoogle Scholar
Babcock, B.A., Lakshminarayan, P.G., Wu, J., and Zilberman, D. 1997, ‘Targeting tools for the purchase of environmental amenities’, Land Economics 73: 325–329.CrossRefGoogle Scholar
Baumol, W.J. and Oates, W.E. 1988, The Theory of Environmental Policy, 2nd edn, Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Brooke, A., Kendrick, D., and Meeraus, A. 1992, GAMS: A User's Guild, South San Francisco, CA: GAMS Development Corporation, The Scientific Press.Google Scholar
Carpentier, C.L., Bosch, D.J., and Batie, S.S. 1998, ‘Using spatial information to reduce costs of controlling agricultural nonpoint source pollution’, Agricultural and Resource Economics Review 74: 72–84.CrossRefGoogle Scholar
Chang, G.R. 2000, ‘Stratified analyses on regional ground subsidence caused by pumping from multiple wells in Tai-Shi and Mai-Liao region’, Unpublished Master's Thesis, National Taiwan University, Taiwan.Google Scholar
Chen, H., Liang, R.Y., and Lai, G.H. 1996, ‘Analyses and survey of reasonable consumption of water of aquaculture in Chia-Yi county and Tainan county’, Article for 1996 Symposium on Agricultural Engineering.Google Scholar
Chen, H., Liang, R.Y., Lai, G.H., Chen, H.L., and Chien, W.H. 1999, ‘Estimation of groundwater use by aquaculture industry in Taiwan’, Research Institute of Agricultural Engineering, Taipei, Taiwan.Google Scholar
Chia-Yi County Government 1987, ‘Report on plans of synthetic development of Chia-Yi county’, Chia-Yi, Taiwan.Google Scholar
Chia-Yi County Government 2005, ‘2004 Statistical yearbook of Chia-Yi county’, Chia-Yi, Taiwan.Google Scholar
CONOPT [Computer Software] 2005, A. Drud, ARKI Consulting and Development, California, USA.Google Scholar
Council of Agriculture 1995a, ‘First phase of ground subsidence prevention project’, Taipei, Taiwan.Google Scholar
Council of Agriculture 1995b, ‘The origins of current ground subsidence problems in Taiwan’, Taipei, Taiwan.Google Scholar
Council of Agriculture 1998, ‘1997 Fisherman family economic survey’, Taipei, Taiwan.Google Scholar
Council of Agriculture 2003a, ‘2002 Fisherman family economic survey’, Taipei, Taiwan.Google Scholar
Council of Agriculture 2003b, ‘Second phase of ground subsidence prevention project’, Taipei, Taiwan.Google Scholar
E-Views (Version 4.0 for Windows) [Computer Software] 2002, Quantitative Micro Software, California, USA.Google Scholar
Fredrikson, P.G. 1997, ‘Environment policy choice: pollution abatement subsidies’, Resource and Energy Economics 20: 51–63.CrossRefGoogle Scholar
Huang, C.H. 1990, ‘Economic valuation of underground water and man-induced land subsidence in aquaculture’, Applied Economics 22: 31–43.CrossRefGoogle Scholar
Huang, C.H. 1997, ‘Aquaculture and the endogenous damage cost of water pollution: the case of Taiwan’, Aquaculture Economics and Management 1: 99–108.CrossRefGoogle Scholar
Huang, L.H. 2000,‘Modeling ground subsidence from over-pumping groundwater’, Water Resources Planning Institute, Taipei, Taiwan.Google Scholar
Industrial Technology Research Institute (ITRI) – Energy and Environment Research Laboratories 2004, ‘The observation, monitoring, survey and analyses of ground subsidence in Taiwan’, Hsin-Chu, Taiwan.Google Scholar
Johnston, J. and Dinardo, J. 1997, Econometric Methods, 4th edn, New York: McGraw-Hill, pp. 388–411.Google Scholar
Khanna, M., Yang, W., Farnsworth, R., and Onal, H. 2003, ‘Cost- effective targeting of land retirement to improve water quality with endogenous sediment deposition coefficients’, American Journal of Agricultural Economics 85: 538–553.CrossRefGoogle Scholar
Kramer, R.A., McSweeny, W.T., Kerns, W.R., and Stravros, R.W. 1984, ‘An evaluation of alternative policies for controlling agricultural nonpoint source pollution’, Water Resources Bulletin 20: 841–846.CrossRefGoogle Scholar
Ministry of Audit 2006, ‘The annual audit and statistic information report of each county in Taiwan from 1998 to 2005’, Taipei, Taiwan.Google Scholar
Ministry of Economic Affairs 2001, ‘The feasibility study on introducing new industries into severe land subsiding area’, Taipei, Taiwan.Google Scholar
Polinsky, M. 1979, ‘Notes on the symmetry of taxes and subsidies in pollution control’, Canadian Journal of Economics 12: 75–83.CrossRefGoogle Scholar
Shi, C.J. 2000, ‘A study on control parameters of ground subsidence in Yun-Lin and Chia-Yi region’, Water Resources Bureau, Ministry of Economic Affairs, Taipei, Taiwan.Google Scholar
Smith, R.B.W. 1995, ‘The conservation reserve program as a least-cost land retirement mechanism’, American Journal of Agricultural Economics 77: 93–105.CrossRefGoogle Scholar
Taiwan Aerial Survey and Remote Sensing Society 2005, ‘Fish farm size in Budai from years 2000 to 2004’, Taipei, Taiwan.Google Scholar