An evaluation of the economic viability of environmental offsets in the saltworks industry

Abstract

The extraction of sea salt depends on the occupation of large areas at the estuary banks, many of them inserted in Permanent Preservation Areas (PPAs). Thus, the objective was to evaluate the economic viability of Environmental Offsets (EO) as an alternative to the unoccupied PPAs in the saltworks. In order to do so, 27 solar saltworks installed in the region of the Brazilian White Coast were evaluated for the occupation of PPAs - measured using images from satellite, georeferenced, vectored with corresponding PPA bands generated - and estimated to EO (Impact Degree x Sum of the investments necessary to implement the project) and Economic Impact (Net Present Value, with long-term interest rate of 7%) of vacating PPAs. It was considered that EO was feasible whenever the costs resulting from it were lower than the economic impact caused by the vacancy of the PPAs. The PPAs were tthe productive area of the saltworksthat occupied 13.70% of PPAs. For all the evaluated enterprises the value corresponding to EO was lower than the Economic Impact resulting from the vacancy of the PPAs. Thus, EO is an economically viable and more attractive alternative to the eviction of PPAs by the saltworks industry and may also provide environmental gains due to the financing of conservation units in the areas of influence of the enterprises. However, there is a need to improve the methodology used to estimate the EO, since a maximum limit is set, the environmental impacts caused by the projects are underestimated.

The Sustainability of Saltworks Integration in Pati Regency, Central Java

“…Saltworks integration is the unification of the place and process of salt production in a unified expanse of land with a minimum limit of 15 (fifteen) Ha (Ministry of Marine Affairs and Fisheries, 2020). Saltworks integration activities is to improve the welfare of salt farmers (Fernandes et al, 2020;Muhandhis et al, 2021). The success of saltworks integration through an approach for increasing productivity, quality, continuity, and business institutions (corporatization).…”