Climate change adaptation strategies and shrimp aquaculture: Empirical evidence from the Mekong Delta of Vietnam

Shrimp aquaculture is among the most vital sectors in the Mekong Delta of Vietnam regarding economic well-being, social aspects, and food security beyond the country boundary. Nevertheless, this sector has faced emerging challenges from increased climate variability during recent decades, negatively influencing its outcomes. This paper utilized farm-level data surveyed in 2019 to investigate the mechanisms behind households' decisions to adopt three primary climate change adaptation practices: upgrading pond dikes, lining ponds with plastic sheets, and having settling ponds. This study demonstrates the effects of adopting these strategies on shrimp farming performance. An endogenous switching regression model was employed to deal with potential selection bias and heterogeneity in the decision to adopt or not. We find that the adoption of upgrading pond dikes and having a settling pond result in higher productivity in shrimp farming, and both adopters and non-adopters of these strategies would benefit from the adaptation. As well, education of the farm operators and farmers' belief on changes in climatic conditions and their impacts on shrimp farming are the main drivers behind the adoption behavior. This study, therefore, provides empirical evidence for policymakers to promote specific climate change adaptation strategies that would improve the welfare of shrimp farmers.