Economic analysis of sustainable development on the Indonesian coastal resources
Abstract
Mangroves, an important coastal resource in Luwu District, South Sulawesi, are under intense pressure from competing resources uses. Uncontrolled conversion of mangrove forests into shrimp-aquaculture is considered the most serious environmental problem in the South Sulawesi coastal area. This study examines how to allocate mangrove forests between shrimp-aquaculture and forestry, in order to generate the highest benefits for society. A comprehensive bio-economic model is developed to analyze the welfare effects generated by different policies of forestry and fisheries management. Using optimal control theory and a cost-benefit framework the model determines the optimal steady-state land allocation schemes.^ The results indicate that under open-access in the marine fishery the optimal policy is to have mixed investments of shrimp-aquaculture development and mangrove replanting. If the marine fishery is regulated under optimal harvest management, then the investment of replanting alone is found to generate the most benefits. Replanting occurs during the end of time periods, indicating a less-dependant between the two renewable resources (forestry and fisheries). The results indicate that regulating fishery's sector has a strong impact on the forestry policy. ^
Subject Area
Economics, General
Recommended Citation
Gellwynn D. H Yusuf,
"Economic analysis of sustainable development on the Indonesian coastal resources"
(1997).
Dissertations and Master's Theses (Campus Access).
Paper AAI9805257.
http://digitalcommons.uri.edu/dissertations/AAI9805257