Environmental externalities in relation to agricultural sector in Thailand with trade-linked analysis

Thailand plays an important role in the international trade of food and agricultural products, which is in alignment with its national strategy of serving as the “kitchen of the world.” When looking at its agricultural promotion and export policies, the country only counts the value gains from exports while neglecting environmental externalities related to plantation practices. The purpose of this study was to perform a trade-off analysis between consumptive water, land, and fertilizer use together with the economic values of major crops for export and consumption in the country. The results show that to gain income from agricultural exports, the country has exploited various natural resources. The area used to harvest rice, sugarcane, cassava, and rubber adds up to approximately 15.3 million ha: 7.2 million ha of which is for domestic consumption and 8.1 ha for export. To produce Thailand’s agricultural exports, total water use is estimated to be 49.8–67.5 billion m³ per year (61–65 %), while the amount used to produce crops for domestic consumption is 26.5–43.7 billion m³ per year (35–39 %). Meanwhile, 1,056–1,826 thousand tons (54 %) of fertilizer was used on crops for domestic consumption, and 1,222–1,370 thousand tons (46 %) of fertilizer was used on export crops. The best crop choice for export in terms of its export value, land use, fertilizer use, and water consumption is rubber. The worst crop choices for export are rice and cassava. More sustainable agricultural practices are needed to effect improvements such as increased yields and reduced fertilizer and water use.