The economics of the adoption of BMPs: the case of mariculture water management

How shrimp mariculture interacts with the natural environment is a topic re ceiving growing attention from industry members and environmental organizat ions. The farms' use of water, and subsequent discharge problems, represent important inter- and intra-industry externalities. The non-point source na ture of the pollution problem suggests direct effluent regulation is unfeas ible, and voluntary adoption of best management practices is the current ap proach favored by the industry and international organizations. This paper provides an in-depth analysis of one such management practice, reduced wate r exchange. Significant reductions in pond pumping diesel costs, alongside possible reductions in pond productivity and shrimp size, are expected from this technique. Social benefits could follow from the reduction of nitroge n and other effluent loadings. But adoption problems are expected due to th e current inability to value longer-term private and social benefits of the practice and the risk-creating nature of the technique. Voluntary complian ce with sustainable practices could be enhanced by complementary policy too ls and a role of governments in coastal zone management. (C) 2000 Elsevier Science B.V. All rights reserved.