Climate Change and the Aquaculture Sector of Sarawak
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CLIMATE CHANGE AND THE AQUACULTURE SECTOR OF SARAWAK ROSITA BINTI HAMDANMalaya of FACULTY OF ECONOMICS AND ADMINISTRATION UNIVERSITY OF MALAYA KUALA LUMPUR University 2017 CLIMATE CHANGE AND THE AQUACULTURE SECTOR OF SARAWAK ROSITA BINTI HAMDANMalaya of THESIS SUBMITTED IN FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY FACULTY OF ECONOMICS AND ADMINISTRATION UNIVERSITY OF MALAYA KUALA LUMPUR University 2017 UNIVERSITY OF MALAYA ORIGINAL LITERARY WORK DECLARATION Name of Candidate: Rosita Binti Hamdan 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; Malaya (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 ofrights 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: UniversitySubscribed and solemnly declared before, Witness’s Signature Date: Name: Designation: ii 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,Malaya sunshine hours and the pond aquaculture farm size) were found to influeofnce 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 factorsUniversity 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. iii 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 risksMalaya to aquaculture production. This study contributes towards an economic approach in the assessment of vulnerability to climate change risks and the potential adaptationof 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. KeywordsUniversity: Aquaculture, climate change, biophysical vulnerability, socio-economic vulnerability, adaptation. iv 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.Malaya Faktor-faktor keterancaman biofizikal (min suhu maksimum, min suhuof 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 kewanganUniversity (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 v 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 pengurusanMalaya peruntukan sumber yang effektif dalam penggunaan tanah atau kawasan untuk akuakultur, pengurusan makanan ikan dan waktu kerja buruh di ladang membantuof 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 cadanganUniversity daripada kajian ini adalah penting kepada penambahbaikan pengurusan akuakultur, dasar, undang-undang, dan peraturan-peraturan semasa