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Socio-economic and Environmental Consequences of Public and Private Investment in Shrimp Aquaculture: The Case of Indonesia

Curtis M. Jolly, Tridoyo Kusumastanto


Socio-economic and environmental conflicts in public and private investment planning in the Indonesian shrimp aquaculture industry are examined. A dynamic regional economic allocation model (DREAM) and Harmonious Adaptive Learning Procedure (HALP) are used to evaluate investment strategies for shrimp aquaculture when hierarchal decisions are made and goals imposed at various stages. When income generation and labor employment are regional priorities, firms employ less skilled and unskilled labor, but more capital intensive systems. When the environment is given priority consideration, firms employ semi-intensive and extensive production systems, but shrimp production, and exports are significantly different from that of project optimal levels. When average weight is given to environmental concerns resource allocation and output levels approach that of optimality and that at the project level.


shrimp; aquaculture; environment; employment; investment

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