Efficiently reducing pollution from the seafood industry requires differentiated environmental fees

The seafood processing industry plays a vital role in job creation and economic growth, particularly in regions like the Mekong River Delta of Vietnam. However, this industry also generates a significant amount of organic pollutants, predominantly discharged into riverside and seashore areas.

Addressing water pollution from seafood processing operations is crucial for environmental sustainability and public health. The current regulatory framework in Vietnam applies a platform standard and environmental fee for water pollutants, but little is known about the actual Marginal Abatement Costs (MACs) incurred by seafood processing firms in reducing these pollutants.

Understanding the MACs and their heterogeneity is essential for designing effective pollution reduction policies. This study aims to fill this research gap by estimating the MACs of three water pollutants (BOD, COD, and TSS) in the seafood processing industry, exploring the factors influencing MACs, and providing insights for policymakers to develop cost-effective and tailored pollution reduction strategies.