{"title":"An upstream-downstream externality related to water quality: The case of the Porong River in Indonesia","authors":"F. Jensen, Venticia Hukom, R. Nielsen, M. Nielsen","doi":"10.1080/13657305.2022.2137263","DOIUrl":null,"url":null,"abstract":"Abstract In this paper, we discuss an upstream-downstream externality related to water quality (the level of ammonia) in a river by distinguishing between a non-cooperative and cooperative case. As empirical case, we use the Porong River, which is located in the East Java province of Indonesia. In this river, aquaculture farmers are located downstream while the industrial firms are placed upstream. In both the non-cooperative and cooperative case, we find that the optimal profit by a polyculture is higher than the optimal profit for an industrial firm, and this result is robust to variations in relevant parameter values. Furthermore, by comparing the non-cooperative and cooperative cases, we find that the optimal gain of moving to joint management is reasonably high, and when varying relevant parameter values, this gain remains almost unchanged.","PeriodicalId":48854,"journal":{"name":"Aquaculture Economics & Management","volume":null,"pages":null},"PeriodicalIF":3.8000,"publicationDate":"2022-10-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Aquaculture Economics & Management","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1080/13657305.2022.2137263","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"AGRICULTURAL ECONOMICS & POLICY","Score":null,"Total":0}
引用次数: 0
Abstract
Abstract In this paper, we discuss an upstream-downstream externality related to water quality (the level of ammonia) in a river by distinguishing between a non-cooperative and cooperative case. As empirical case, we use the Porong River, which is located in the East Java province of Indonesia. In this river, aquaculture farmers are located downstream while the industrial firms are placed upstream. In both the non-cooperative and cooperative case, we find that the optimal profit by a polyculture is higher than the optimal profit for an industrial firm, and this result is robust to variations in relevant parameter values. Furthermore, by comparing the non-cooperative and cooperative cases, we find that the optimal gain of moving to joint management is reasonably high, and when varying relevant parameter values, this gain remains almost unchanged.
期刊介绍：
Aquaculture Economics and Management is a peer-reviewed, international journal which aims to encourage the application of economic analysis to the management, modeling, and planning of aquaculture in public and private sectors. The journal publishes original, high quality papers related to all aspects of aquaculture economics and management including aquaculture production and farm management, innovation and technology adoption, processing and distribution, marketing, consumer behavior and pricing, international trade, policy analysis, and the role of aquaculture in food security, livelihoods, and environmental management. Papers are peer reviewed and evaluated for their scientific merits and contributions.
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