climate change and the aquaculture sector of sarawak rosita binti hamdan faculty of economics ...

370 Pages·2017·2.35 MB·English

CLIMATE CHANGE AND THE AQUACULTURE SECTOR
OF SARAWAK

ROSITA BINTI HAMDAN

FACULTY OF ECONOMICS AND ADMINISTRATION
UNIVERSITY OF MALAYA
KUALA LUMPUR

2017
CLIMATE CHANGE AND THE AQUACULTURE
SECTOR OF SARAWAK

ROSITA BINTI HAMDAN

THESIS SUBMITTED IN FULFILMENT OF THE
REQUIREMENTS FOR THE DEGREE OF DOCTOR OF
PHILOSOPHY

FACULTY OF ECONOMICS AND ADMINISTRATION
UNIVERSITY OF MALAYA
KUALA LUMPUR

2017
UNIVERSITY OF MALAYA
ORIGINAL LITERARY WORK DECLARATION

Name of Candidate: Rosita Binti Hamdan (I.C/Passport No: 830824-13-5200)
Matric No: EHA 080018
Name of Degree: Doctor of Philosophy
Title of Thesis (“this Work”):
CLIMATE CHANGE AND THE AQUACULTURE SECTOR OF SARAWAK
Field of Study: Environmental Economics

I do solemnly and sincerely declare that:
(1) I am the sole author/writer of this Work;
(2) This Work is original;
(3) Any use of any work in which copyright exists was done by way of fair
dealing and for permitted purposes and any excerpt or extract from, or
reference to or reproduction of any copyright work has been disclosed
expressly and sufficiently and the title of the Work and its authorship have
been acknowledged in this Work;
(4) I do not have any actual knowledge nor do I ought reasonably to know that
the making of this work constitutes an infringement of any copyright work;
(5) I hereby assign all and every rights in the copyright to this Work to the
University of Malaya (“UM”), who henceforth shall be owner of the
copyright in this Work and that any reproduction or use in any form or by any
means whatsoever is prohibited without the written consent of UM having
been first had and obtained;
(6) I am fully aware that if in the course of making this Work I have infringed
any copyright whether intentionally or otherwise, I may be subject to legal
action or any other action as may be determined by UM.

Candidate’s Signature Date:

Subscribed and solemnly declared before,

Witness’s Signature Date:

Name:
Designation:
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CLIMATE CHANGE AND THE AQUACULTURE SECTOR OF SARAWAK
ABSTRACT
Aquaculture activities are an important contributor to the growth of the fisheries sector
in Malaysia. However, climate changes provide major challenges in sustaining future
outlook of the aquaculture sector. This study aims to investigate the impacts of climate
change on Sarawak’s aquaculture sector by assessing the biophysical and socio-
economic vulnerability of aquaculture production, and identifying potential adaptation
strategies to cope with climate change risks. Three principal essays address the study’s
three objectives. The first essay focused on the assessment of climate change impacts
on the biophysical vulnerability of aquaculture production in Sarawak from a macro
level perspective for pond and cage systems. Biophysical vulnerability factors (mean
maximum temperature, mean minimum temperature, sunshine hours and the pond
aquaculture farm size) were found to influence pond aquaculture production positively.
The results showed that cage production is positively influenced by mean percentage
relative humidity and negatively influenced by mean maximum temperature. The
second essay focused on the farm level impact assessment of climate change impacts on
the biophysical and socio-economic vulnerability of Sarawak’s aquaculture sector based
on evaluation of the physical value (production) and the financial value (income). The
water quality, change in precipitation, drought, and hydrological events are biophysical
factors that have effects on socio-economic vulnerability, whilst financial and physical
factors were important in determining aquaculture productivity. In terms of farmers’
income and livelihoods, the results further revealed that the aquaculture system and
ethnicity (demographic factors), technology usage (physical asset), financial loans and
off-farm income (financial assets), and farm size, dissolved oxygen depletion, and
pandemic diseases (natural resources and environmental assets) were the significant
factors influencing the socio-economic vulnerability of Sarawak’s aquaculture sector.
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The third essay identified the potential adaptation strategy to counter climate change
risks in Sarawak, based on the comparison of three different farm management
approaches with three different risk reduction strategies. The potential adaptation
strategy for pond aquaculture in Sarawak is to implement a feed waste emission
reduction with environmental restriction strategy; and for cage activities it was through
a feed waste reduction implementation strategy. The study revealed that the marginal
abatement costs of ponds are higher than for cage activities and if more stringent
environmental regulation and restriction were to be imposed on farm production, the
marginal abatement costs would increase. The results also suggested that effective
resource allocation management in land used or space for aquaculture, fish feed
management and working hours’ (labor) in farm help would assist profit maximization
for farms as well as reduce the climate change risks to aquaculture production. This
study contributes towards an economic approach in the assessment of vulnerability to
climate change risks and the potential adaptation option for Sarawak’s aquaculture
sector. The assessment provided empirical evidence that the existing climate change
risks and hazards in the aquaculture sector might worsen and imperil the aquaculture
sector’s potential for future growth. The results of this study and recommendations
made are important to improve current aquaculture management, policies, laws, and
regulations in Malaysia to cope with climate change impacts.
Keywords: Aquaculture, climate change, biophysical vulnerability, socio-economic
vulnerability, adaptation.
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PERUBAHAN IKLIM DAN SEKTOR AKUAKULTUR DI SARAWAK
ABSTRAK
Aktiviti akuakultur merupakan penyumbang penting kepada perkembangan sektor
perikanan di Malaysia. Walaubagaimanapun, insiden perubahan iklim memberikan
cabaran besar kepada kelestarian sektor akuakultur pada masa depan. Kajian ini
dijalankan bertujuan untuk mengkaji kesan perubahan iklim ke atas sektor akuakultur di
Sarawak dengan menilai keterancaman biofizikal dan sosio-ekonomi pengeluaran
akuakultur dan mengenalpasti strategi-strategi berpotensi untuk mengadaptasi dalam
menghadapi risiko perubahan iklim. Tiga objektif kajian dikenalpasti dalam tiga prinsip
esei. Esei pertama berfokus kepada penilaian impak perubahan iklim terhadap
keterancaman biofizikal bagi pengeluaran akuakultur di Sarawak berdasarkan perspektif
makro terhadap sistem akuakultur kolam dan sangkar. Faktor-faktor keterancaman
biofizikal (min suhu maksimum, min suhu minimum, jumlah jam cahaya matahari, dan
saiz ladang kolam) didapati mempunyai pengaruh positif terhadap pengeluaran
akuakultur kolam. Keputusan juga menunjukkan pengeluaran sangkar dipengaruhi
secara positif oleh min peratusan kelembapan relatif dan dipengaruhi secara negatif oleh
min suhu maksimum. Manakala, esei kedua berfokus ke atas penilaian impak perubahan
iklim ke atas keterancaman biofizikal dan sosioekonomi di peringkat ladang bagi sektor
akuakultur di Sarawak berdasarkan penilaian nilai fizikal (pengeluaran) dan nilai
kewangan (pendapatan). Daripada aspek pengeluaran, kualiti air, perubahan jumlah
hujan, kemarau, dan aktiviti hidrologi merupakan faktor-faktor biofizikal yang memberi
kesan terhadap keterancaman sosioekonomi, manakala, faktor kewangan dan fizikal
penting dalam menentukan produktiviti akuakultur. Dari segi pendapatan dan
penghidupan penternak, keputusan seterusnya menunjukkan bahawa sistem akuakultur
dan etnik merupakan faktor demografi, penggunaan teknologi (aset fizikal), pinjaman
kewangan dan pendapatan luar ladang (aset kewangan), dan saiz ladang, kekurangan
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oksigen terlarut, dan penyakit pandemik (aset sumber semulajadi dan alam sekitar)
merupakan faktor-faktor signifikan yang mempengaruhi keterancaman sosioekonomi
dalam sektor akuakultur di Sarawak. Esei ketiga mengenalpasti strategi adaptasi
berpotensi dalam menangani risiko perubahan iklim di Sarawak berdasarkan
perbandingan terhadap tiga pendekatan pengurusan ladang yang berbeza dan tiga
strategi pengurangan risiko dalam ladang. Strategi adaptasi yang berpotensi untuk
kolam adalah dengan melaksanakan pengurangan pelepasan makanan sisa dengan
strategi sekatan alam sekitar dan untuk aktiviti sangkar ialah strategi pelaksanaan
pengurangan sisa makanan. Kajian juga mendapati kos pengurangan marginal aktiviti
kolam adalah lebih tinggi daripada aktiviti sangkar dan jika peraturan alam sekitar yang
lebih ketat dan sekatan dikenakan untuk pengeluaran ladang, kos pengurangan marginal
akan meningkat. Keputusan juga mencadangkan pengurusan peruntukan sumber yang
effektif dalam penggunaan tanah atau kawasan untuk akuakultur, pengurusan makanan
ikan dan waktu kerja buruh di ladang membantu dalam memaksimumkan keuntungan
ladang sekaligus mengurangkan risiko perubahan iklim dalam pengeluaran akuakultur.
Kajian ini menyumbang ke arah pendekatan ekonomi dalam penilaian keterancaman
oleh risiko perubahan iklim dan pilihan adaptasi berpotensi dalam sektor akuakultur di
Sarawak. Penilaian ini memberikan bukti empirikal bahawa risiko perubahan iklim dan
bahaya yang sedia ada dalam sektor akuakultur mungkin menjadi lebih teruk dan
bahaya kepada potensi pertumbuhan sektor akuakultur pada masa depan. Keputusan dan
cadangan daripada kajian ini adalah penting kepada penambahbaikan pengurusan
akuakultur, dasar, undang-undang, dan peraturan-peraturan semasa di Malaysia dalam
menangani kesan perubahan iklim.
Kata kunci: Akuakultur, perubahan iklim, keterancaman biofizikal, keterancaman
sosio-ekonomi, adaptasi.
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ACKNOWLEDGEMENTS
Praise to Allah for granting me the opportunity to complete my Ph.D. This thesis is
completed successfully through various means and contributions of many individuals.
I would like to express my deepest gratitude, especially to my respectable supervisor,
Prof. Dr. Hjh. Fatimah Kari and Dr. Azmah Othman for all of their ideas and expertise
in the supervision process throughout my Ph.D journey, continuous encouragement,
moral supports, patience, and commitments in completing this research. I am also
deeply indebted to all of my former teachers and lecturers who have shaped me into the
person I am today. Not forgetting the most important people in my life, my beloved
parents, Hj. Hamdan Hj. Sujang and Hjh. Fatimahwaty Abdullah, my beloved sisters
and family members who have devoted affection, prayed for the best, gave me constant
encouragement and even sacrificed their time, energy, and money for this journey.
My special thanks also go to my friends, Dr. Sharifah Muhairah, Dr. Asiah, Dr. Siti
Muliana, Nur Shahirah, Dr. Surena, Dr. Fariastuti, Dr. Norazuna, Dr. Wan Sofiah,
Audrey, Dr. Muhammad Asraf, Dr. Josephine, Noralifah, and Mogeret - who is always
faithful accompanying me, giving advices and moral supports, and exchanging ideas
during the ups and downs of this journey. Not forgetting to all friends who prayed for
the best and indirectly contributed to this journey.
This appreciation also goes to Sarawak's State Planning Unit, Department of
Agriculture (DOA) Sarawak, Department of Fisheries (DOF) Sarawak, Natural
Resources and Environment Board (NREB) Sarawak, and all individuals involved in the
field works and data collection of this research. My special thanks also go to the
Ministry of Higher Education (MOHE) Malaysia, Universiti Malaysia Sarawak, and
University of Malaya for providing financial supports for this study.
May Allah reward all of you with goodness.
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TABLE OF CONTENTS
Abstract ............................................................................................................................ iii
Abstrak .............................................................................................................................. v
Acknowledgements ......................................................................................................... vii
Table of Contents ........................................................................................................... viii
List of Figures ................................................................................................................. xv
List of Tables.................................................................................................................. xvi
List of Symbols and Abbreviations .............................................................................. xviii
CHAPTER 1: INTRODUCTION .................................................................................. 1
1.1 Aquaculture Development and Growth in Malaysia ............................................... 1
1.2 Aquaculture Development and Growth in Malaysia ............................................... 7
1.2.1 Malaysia’s Climate ..................................................................................... 7
1.2.2 The Climate Change Scenario in Malaysia ................................................ 8
1.2.3 Climate Change Risks to the Growth of Aquaculture .............................. 11
1.3 Problem Statement ................................................................................................. 13
1.4 Research Questions ................................................................................................ 18
1.5 Objectives of the Study .......................................................................................... 19
1.6 Scope of the Study ................................................................................................. 19
1.6.1 Study Area: Reasons for selection ............................................................ 20
1.7 Significance of the Study ....................................................................................... 24
1.7.1 Aquaculture Sector Development ............................................................ 24
1.7.2 Aquaculture Producers’ Welfare .............................................................. 24
1.7.3 Enhance Information about Potential Adaptations to Climate Change .... 25
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1.7.4 Recommendation for the Enhancement of Climate Change Policy in
Malaysia ................................................................................................... 25
1.8 Organization of the Chapters ................................................................................. 26
CHAPTER 2: VULNERABILITY OF THE AQUACULTURE SECTOR AND ITS
ADAPTATION TO CLIMATE CHANGE RISKS: THEORETICAL AND
CONCEPTUAL FRAMEWORK ................................................................................ 28
2.1 Introduction............................................................................................................ 28
2.2 Progression of the Environmental Economics and the Economics of Climate
Change Theories .................................................................................................... 29
2.3 Theoretical Framework .......................................................................................... 36
2.3.1 Theory of Production ................................................................................ 36
2.3.2 The Theory of the Firm ............................................................................ 42
2.3.3 The Theory of Entitlement ....................................................................... 45
2.3.4 Externalities and Market Failure .............................................................. 47
2.3.5 Expected Utility Theory and Risk ............................................................ 49
2.3.6 Theory of Vulnerability ............................................................................ 58
2.3.6.1 Biophysical vulnerability .......................................................... 60
2.3.6.2 Socio-economic vulnerability ................................................... 61
2.3.6.3 Biophysical and socio-economic vulnerability: The study
gaps…….. .................................................................................. 65
2.3.7 Theory of Resilience ................................................................................ 67
2.3.8 Adaptation Theory .................................................................................... 71
2.3.8.1 Adaptation evaluation methods ................................................. 77
2.3.8.2 Effective adaptation factors ....................................................... 79
2.3.9 Sustainable Livelihood Approach (SLA) model ...................................... 84
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