Title: Cost-benefit analysis of shrimp cultivation in the south-west region of Bangladesh

Authors: Mohammed Ziaul Haider

Addresses: Economics Discipline, Khulna University, Khulna – 9208, Bangladesh

Abstract: This study conducted a cost-benefit analysis of shrimp farming in the south-west coastal region of Bangladesh. It finds a cost-benefit ratio of 0.77-0.88 for secondary dataset and 0.58-0.80 for primary dataset. The ratio increases for incorporating costs for household-level cooking-fuel, drinking water collection and such other indirect costs originated from shrimp farming intervention. In contrast, the ratio remains within 0.30-0.63 when only the direct cost and benefit components are considered and this is what the farmers usually observe and consider in farm-level decision-making. Therefore, farming decisions undermine invisible and unaccounted costs. The dilemma of higher visible economic return vs. invisible indirect costs of shrimp farming needs to be handled carefully through information dissemination among farmers regarding associated direct and indirect costs and benefits, establishing a clear set of rules, regulations and enabling policy and finally let the stakeholders to take final farming decisions which might facilitate sustainable practices for shrimp farming.

Keywords: shrimp cultivation; externality; Bangladesh; cost-benefit analysis; CBA; shrimp farming; indirect costs; direct costs; information dissemination.

DOI: 10.1504/IJESD.2015.072078

International Journal of Environment and Sustainable Development, 2015 Vol.14 No.4, pp.315 - 331

Received: 26 Oct 2013
Accepted: 29 Oct 2014

Published online: 12 Jul 2015 *

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