Evaluating the Potential Socioeconomic Impact of a Proposed Sugarcane Factory on the Village of Mueang Phia, Thailand

Abstract

Thailand is the world’s second largest exporter of sugar, and under the 10-Year Cane and Sugar Strategy (2015–2024), the Thai government has granted an expansion of 13 new sugarcane factories. While most research focuses on the environmental consequences of sugarcane production, this paper examines the potential socioeconomic impact of a proposed sugarcane factory on a nearby (base) village by comparing it to a similar (treatment) village within the same region near an existing sugarcane factory. We find that treatment villagers have higher household income mainly due to their sugarcane-based village economy. They also disclose better perceived environmental quality while results for perceived health status are mixed. Yet, base villagers report higher perceived quality of life, likely due to factors beyond the socioeconomic conditions investigated in this study. Thus, the presence of a sugarcane factory, while socioeconomically favorable, may compromise other aspects of village life that contribute to its overall quality.