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This paper explores the economics of land degradation in the rice-shrimp system inthe Mekong Delta of Vietnam. A bioeconomic NPV model was developed toevaluate and compare the long-term benefits of alternative production choices andfarm technologies. There is an alternative rice-shrimp technology emerging inVietnam that does not have the same land degrading impacts as the 'traditional'system, however the high capital outlay and risk associated with such technologypresents its own problems. In the paper the economic incentives for adoption of thenon-land degrading rice-shrimp technology are explored. Conclusions are drawn withregard to the opportunity cost of land degradation and technological change. Someconclusions are also provided on the policy implications arising from the resultspresented.
