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Rice land protection in a transitional economy: The case of Vietnam
Long Chu1, Hoa-Thi-Minh Nguyen1, Tom Kompas1,2
1Crawford School of Public Policy, Crawford Building (132), Lennox Crossing, Australian National University, ACT, 2601, Australia.
Abstract:
Agricultural land protection (ALP) is a standard policy response to a desire for food security. However, ALP may result in a misallocation of resources. Examining rice land policy in Vietnam, we determine the optimal level of rice land protected against other crops using a stochastic optimization model built on top of a general equilibrium framework, combined with sequential micro-simulations on household data. We find that converting part of protected rice land enhances economic efficiency. Nonetheless, the policy is relatively pro-rich, implying a trade-off between poverty reduction and economic efficiency, making some households in already poor areas worse off. Our approach can be applied to land-use planning generally, highlighting the relevant tradeoffs and the search for needed optimal land-use policies.
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