The Relationship Between Mangrove Deforestation and Economic Development in Thailand

Abstract

Mangrove in Thailand has been steadily deforested from 1961 to 1996 and has been reduced to about half of the original area. The Environmental Kuznets Curve (EKC) hypothesis, however, posits that economic development eventually reverses resource degradation. This hypothesis is examined using pooled data on mangrove loss and Gross Provincial Product (GPP) from 23 provinces in Thailand in various years between 1975 and 2004. The empirical results show strong evidence of an EKC relationship between mangrove loss and GPP. In addition, since shrimp farming is considered to be one of the main causes of mangrove deforestation, the relationship between shrimp farming and mangrove loss is examined. Shrimp farming is found to significantly affect the extent of mangrove deforestation. The development of extensive and semi-intensive shrimp farming techniques quickens mangrove deforestation, but intensive shrimp farming, which developed during the 1990s, reduces mangrove loss.