As the second largest producer in the world, shrimp aquaculture plays an important role in the Indonesian economy, particularly in the economies of rural coastal communities. Aggregate production statistics demonstrate that shrimp aquaculture production is increasing rapidly, and this expansion is due largely to the intensification of production practices via the use of a new shrimp HYV (high-yield variety). However very little is known regarding (1) which farmers are constrained in adopting the HYV and the complementary feed technology; (2) the effect HYV diffusion on mangrove forests, and; (3) the efficiency of agricultural traders in the dynamic shrimp industry. These gaps in knowledge are addressed by the following: (1) chapter 1 examines the adoption of HYV and shrimp feed among household aquaculture farms. Results show that while there are no farm-scale barriers to adopting HYV, small farms are constrained in full intensification via the adoption of feed; (2) chapter 2 explores the impact of HYV diffusion on the rehabilitation of mangrove forests. Results show that HYV diffusion increases the probability that villages will replant mangrove forests to mitigate erosion; (3) chapter 3 examines the factors determining allocative inefficiency among trader in the shrimp value-chain. Results show that there are efficiencies of scale, and that institutional arrangements affect allocative ability.
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